General

Before 1985, it was normal for employees to get a company pension set up by their employer for when they retire, the employer effectively managed the "pension pot" or their employees. Following scandals such as those involving Robert Maxwell and more recently the Arcadia group the government bought out a Nest scheme which is now the default scheme used by the majority of companies. You have the right to know all relevant information, whether you have a workplace pension or a private pension. When you do decide it is time to claim your pension you should be informed of your options and current balance. Pension rights can be a difficult topic that can seem complicated to many, however, when broken down it isn’t so hard to understand. To help understand the different meanings we have defined some key terms below:

 

Defined contribution pension

Means a money purchase scheme that provides benefits when you retire based on the amount of money that has been paid into the scheme, how long the money has been invested and the level of charges over this period. (Private pension)

 

A defined benefit scheme (workplace pension)

This is a workplace pension scheme set up by the employer.

 

New state pension

Is a regular payment from the government that most people can claim in later life.

 

Basic state pension

A regular payment from the government based on your previous National Insurance (NI) payments.

 

Pensions for care home residents

When moving into a care home the amount of pension you receive will not change, however, the eligibility for benefits will change. This depends if you are self-funding or relying on help from your local authority. Pensions are something that can get forgotten in the route of going to a care home as it isn’t at the forefront of the family or loved one’s mind. However, it should be, this money could help to pay your loved one’s bills, cover their charges for hairdressing, newspapers, magazines etc.

 

Who is entitled to a state pension

There are two types of state pensions, new state and basic state pension. A basic state pension will only apply to you if you reached state pension age before April 2016. You must have had 30 years of National Insurance (NI) contributions to claim the basic state pension. If you do not have this, you will only get 1/30th of the full state pension amount for each year of contribution. A new state pension requires you to have at least 10 years of NI contributions and turn the state age for a pension after April 2016. If you are successful in this section of the criteria you could be entitled to up to £175.20 (as of Dec 2021) depending on your contributions to NI. For further information on how the amount of pension you receive is worked out, you can visit https://www.ageuk.org.uk/information-advice/money-legal/pensions/state-pension/new-state-pension/ You will get a letter in the post around 4 months before you are due your pension or you can call 0800 731 7898.

 

Can I claim my workplace pension

If you are in a care home and wish to access your pension from your ex-workplace you should be able to within 2 months of asking for it. If you are part of a workplace pension scheme you may require the consent of the employer or trustees to take money out early, but this can be done.

 

How can we help

Arranging a pension is currently not a service that Lestons offer, however, we would be delighted to arrange an appointment with a specialist consultant who we use for this service. To gain our assistance you need to open a case, this is done by taking advantage of our free consultation service, activated by the link at the top of the page, should you wish to start a case the caseworker will send you the suitable payment link.

 

Please note your caseworker can only give generic advice, their role is to prepare your details for handling by the mediator and to act as your point of contact, they will also issue you with your Password and PIN, these will be needed to log onto your client dashboard. From your dashboard you will be able to manage and view every aspect of your case, upload documents, images, files etc.