State pensions. Part of the Department for Work and Pensions. Your guide

State pensions Part of the Department for Work and Pensions Your guide April 2004

Why do I need a pension?

State pensions Your guide Everyone needs to plan ahead for retirement. People are living longer and healthier lives, so it is even more important to think about how and when to save for retirement and how long to work. The basic State Pension will give you a start, but to have the lifestyle you want in retirement you need to think about a second pension, and the sooner you can start the better. To help you, this guide tells you how state pensions work. It looks at some of the questions you may need to think about and tells you where you can find more information. Other guides in this series will give you more information about particular areas of pensions. See page 36 for details about how you can get copies of these guides. These guides can give you helpful information, but only you can make decisions about your pension. When can I get the State Pension? You can get this when you reach State Pension age. At the moment, women can get their State Pension at the age of 60 and men 1

can get their State Pension at the age of 65. From 6 April 2020, the State Pension age for both men and women will be 65. The Government will introduce the change gradually from age 60 to 65 for women over a 10-year period from 2010 to 2020. There will be no change for men. If you want to know more about changes to State Pension age, please see Pensions for women Your guide (PM6). See page 36 for details about how you can get a copy of this guide. We will invite you to claim your State Pension about four months before you reach State Pension age. But you do not have to claim your State Pension as soon as you reach State Pension age. You can claim it later. If you decide to claim it later, the weekly amount you get will be higher but you will not be paid for the weeks you gave up. The Government is proposing to provide an alternative lump-sum payment rather than an increase to your weekly pension if you put off claiming your pension. This will happen from 2005 and will depend on Parliament approving it. We will provide more details in the future. If you are considering delaying claiming your State Pension, you may want to get independent financial advice before you make your decision. 2

A number of things can affect your State Pension. For more information, please see A guide to State Pensions (NP46). See pages 32 and 36 for details about how you can get a copy of this guide. Basic State Pension How do I build up entitlement to the basic State Pension? If you are in paid work and you earn more than 91 any week (for 2004/05), you will pay National Insurance contributions for that week. This figure is called the primary threshold, and you only pay National Insurance contributions if you earn more than that amount. If you work for an employer, they take your National Insurance contributions out of your pay as well as making payments for you. If you are self-employed, you pay National Insurance contributions yourself. Each tax year that you have paid (or are treated as having paid or are credited with) enough National Insurance is called a qualifying year. Generally speaking, the more qualifying years you have, the more basic State Pension you will get when you reach State Pension age. 3

4 In 2004/05, a person needs to have earnings of at least 4,108 (on which standard rate National Insurance contributions are paid, or are treated as having been paid or are credited) for that year to be a qualifying year. For each week that you earn between 79 (the lower earnings limit) and 91 (the primary threshold) in 2004/05, you will be treated as paying National Insurance contributions even though you do not have any contributions taken out of your pay. This means that you will continue to build up entitlement to contributory benefits such as the basic State Pension, even though you are not paying standard rate National Insurance contributions. If you earn less than the lower earnings limit, you do not pay National Insurance contributions. However, you may still be able to protect your entitlement to the basic State Pension if you get certain benefits (we explain this on pages 6 and 7) or if you are a carer who gets Home Responsibilities Protection. We explain how Home Responsibilities Protection works on pages 7 and 8. Once you start getting your basic State Pension, it is reviewed once a year and, when necessary, increased at least by the level of inflation. The increase takes effect in April each year.

How much basic State Pension will I get? The tax years during which you build up entitlement to the basic State Pension are called qualifying years. The amount of State Pension you get will depend on the number of qualifying years you have built up before reaching State Pension age. If you are a man, you normally need to have 44 qualifying years to be entitled to the full (100%) basic State Pension. In 2004/05, the full pension is 79.60 a week for a single person. If you are a woman who will reach the age of 60 before 2010, you normally need 39 qualifying years to get the full basic State Pension. However, when the State Pension age becomes 65 for women as well as men in 2020, the number of qualifying years a woman needs to get the full basic State Pension will increase to 44. Years when a woman has chosen to pay the married woman s reduced rate of National Insurance do not count towards qualifying years. Some people do not get a full basic State Pension because they do not have enough of the qualifying years needed for a full basic State Pension. If you retire with less than a quarter (25%) of the qualifying years for a full State Pension, you won t get any basic State Pension. You will also not be entitled to 5

6 any refund of your National Insurance contributions, because contributions cover other areas of insurance (for example, sickness and unemployment) as well as the State Pension. People who do not qualify for the full basic State Pension, but who have more than 25% of the qualifying years, will get a basic State Pension between the minimum ( 19.90 for men or 20.41 a week for women in 2004/05) and the maximum ( 79.60 a week in 2004/05). If you want to know more about the basic State Pension, please see A guide to State Pensions (NP46). For more information on pensions for women, please see Pensions for women Your guide (PM6). See pages 32 and 36 for details about how you can get copies of these guides. I have not always worked and paid National Insurance contributions can I still get a basic State Pension? There are special rules to help protect entitlement to the basic State Pension for people who have not paid, or been treated as having paid, National Insurance contributions throughout their working life. If you have been receiving certain social security benefits, for example Carer s Allowance

How much State Pension will I get? (called Invalid Care Allowance before April 2003), Jobseeker s Allowance or Incapacity Benefit, we will have credited you with National Insurance contributions. If you have been out of paid work, or you have not paid enough National Insurance contributions while looking after children and receiving Child Benefit, or while looking after a person with a long-term illness or disability, or while registered as a foster carer, we can take account of the years you spent caring if you were caring for a full tax year. This is called Home Responsibilities Protection, and both men and women can claim it. It can reduce the number of qualifying years you need to earn a full basic State Pension. However, for a full basic State Pension, Home Responsibilities Protection cannot reduce the number of qualifying years below 20. This will increase to 22 years for men from 6 April 2010, and from 6 April 2020, when State Pension age will be 65 for both men and women, Home Responsibilities Protection will not reduce the number of qualifying years needed for a full State Pension below 22 for men or women. 7

Only the person who has claimed and been awarded Child Benefit can get Home Responsibilities Protection for caring for a child. If you are the person who has been awarded Child Benefit, your name will be the first name on the order book or shown at the top of any letter from the Child Benefit Office. See page 31 for details about how you can change the person who has been awarded Child Benefit if you think you need to. You need to remember that someone has to be the person who has been awarded Child Benefit for a full tax year (from 6 April to 5 April) to qualify for Home Responsibilities Protection, so you should think carefully about when to change the name of the person who has been awarded Child Benefit. For more information, see State pensions for carers and parents Your guide (PM9). See page 36 for details about how you can get a copy of this guide. If you are a married woman and you have not got enough National Insurance contributions to earn a basic State Pension of your own, we can use your husband s contribution record instead when we work out your basic State Pension (as long as he has reached State Pension age and has claimed his State Pension). This State Pension will be around 60% of the rate of basic State Pension to which your husband is entitled. 8

You do not have to be living with your husband to get this basic State Pension. At the moment, a married man cannot get a basic State Pension on his wife s National Insurance contributions record. However, this will change from 2010. If you want to know more about state pensions for women, please see A guide to State Pensions (NP46) and Pensions for women Your guide (PM6). See pages 32 and 36 for details about how you can get copies of these guides. What happens if I am not entitled to the basic State Pension? The basic State Pension depends on your National Insurance contributions. So if you have not paid, or you have not been treated as having paid, or you have not been credited with enough contributions, you will not get any State Pension. But you can get a non-contributory State Pension (one that you haven t contributed to) if you are 80 or over (see the next section). 9

What happens if I am 80 or over and don t have a State Pension? There is a non-contributory State Pension for people aged 80 or over. This State Pension is set at 60% of the basic State Pension, and we will pay this to you if you: live in Great Britain at the time you claim; are 80 or over; meet the residence conditions (you have lived in Great Britain for a total of 10 years or more in any continuous period of 20 years after your 60th birthday); and have no basic State Pension, or have less than 60% of the full rate. You can get more information from your nearest social security office or Jobcentre (details are in your phone book). What happens if I am widowed? If you are widowed, you may be able to get a State Pension from your late spouse (husband or wife). For details, please see A guide to State Pensions (NP46). See pages 32 and 36 for details about how you can get a copy of this guide. There is also information on page 21 of this guide about inheriting an additional State Pension. 10

Other state support The Government offers a range of help to provide extra financial support to pensioners. Pension Credit provides a contribution to a guaranteed minimum income for people aged 60 and over. For people aged 65 and over, it may reward some of the savings and income they have for their retirement. Pension Credit may include an extra amount or amounts if you or your partner are a carer and are entitled to Carer s Allowance, or if you have a mortgage, or in some cases if you get Attendance Allowance or Disability Living Allowance. See page 30 for information about how to apply for Pension Credit or get more information from The Pension Service website at www.pensions.gov.uk/pensioncredit Pensioners may be entitled to help towards Council Tax and rent payments. For more information, please contact your local council (details are in your phone book) or see the Pensioners guide. See pages 33 and 34 for details about how you can get a copy of this guide or a Pension Credit leaflet. 11

What is the additional State Pension?

Additional State Pension (SERPS and State Second Pension) There are different ways the basic State Pension can be topped up. One is the additional State Pension. You may get an additional State Pension even if you do not get any basic State Pension. From 1978 to 2002, the additional State Pension was called the State Earnings- Related Pension Scheme (SERPS). Under SERPS, you could only build up an additional State Pension if you were an employee with earnings on which standard rate National Insurance contributions were paid (or were treated as paid). If you were contracted out of SERPS before 6 April 1997, your entitlement to SERPS will be reduced or you could possibly lose it. There is no entitlement to SERPS for contracted-out employment from 6 April 1997. On 6 April 2002, the Government reformed SERPS, creating the State Second Pension to provide a more generous additional State Pension for low and moderate earners, and certain carers and people with long-term illnesses or disabilities. (Any SERPS entitlement that has already been built up 13

will be protected, both for those who have already retired and for those who have not yet reached State Pension age.) For employees who have not contracted out of State Second Pension, entitlement is based on earnings on which standard rate contracted-in National Insurance contributions have been paid (or treated as paid). See the next section for information about the effect of contracting out of the State Second Pension. The State Second Pension gives employees earning between 4,108 and 26,600 (in 2004/05) more pension than SERPS would have done, with most help going to those on the lowest earnings (between 4,108 and 11,600 in 2004/05). If you earn at least 4,108 but less than 11,600 (in 2004/05), the State Second Pension rules will treat you as having earned 11,600. The rate at which your additional State Pension builds up (the accrual rate) means that you will get at least twice as much under the State Second Pension as you would have got under SERPS. If your earnings are higher than 11,600 but less than 26,600 (in 2004/05), your additional State Pension will build up at a higher rate through the State Second Pension than it would have done under SERPS. 14

For the first time, certain carers and people with long-term illnesses or disabilities whose working lives have been interrupted or shortened will be covered under the State Second Pension. From 6 April 2002, they may be able to build up an additional State Pension for periods when they cannot work. If you are not in paid employment (or you are on very low wages under 4,108 in 2004/05) and you are looking after a child under the age of six or a person with a long-term illness or disability, you may be able to build up an additional State Pension through the State Second Pension (on top of any basic State Pension). If you qualify, you will build up over 1 a week State Second Pension for each full tax year you are a carer, which you will receive when you reach State Pension age. If you are not in paid employment because you are ill or disabled, from 6 April 2002 you may build up a State Second Pension for each full tax year that you are entitled to long-term Incapacity Benefit or protected Severe Disablement Allowance. If you qualify, you will build up over 1 a week State Second Pension for each full tax year you are ill or disabled, which you will receive when you reach State Pension age. This will apply as long as when you reach State Pension age 15

you have worked and paid Class 1 National Insurance contributions for at least one-tenth of your working life since 1978. This is called the Labour Market Attachment Test. Leaving the additional State Pension You can choose to take out another kind of second pension and leave the State Second Pension at any time during your working life. This is called contracting out. You can do this by joining an occupational scheme (if your employer offers one), a stakeholder pension or a personal pension. You should ask your employer if they have an occupational scheme. If your employer does run a scheme, you will generally be better off joining it. Some employers run schemes which you don t have to pay into at all. For other schemes, you will need to make a contribution. Occupational schemes often provide extra benefits, such as: a pension or lump-sum payment to your husband or wife if you die early (and sometimes to your partner if you are not married); and a pension if you become ill or disabled and have to retire early. 16

You should check with your employer to find out what their occupational scheme covers. If you are in any doubt about the financial position of your employer s scheme, you can contact the trustees for more information. You may also want to contact an authorised financial adviser. But, if you do see an adviser, you may have to pay for their advice. If you are a member of an occupational pension scheme, tax rules mean that you might be able to add to your pension arrangements by taking out a personal or stakeholder pension as well. You should check with your occupational pension scheme to find out if you can join a stakeholder pension as well. Contributions you have already made to the State Second Pension are protected and will give you an additional State Pension when you retire. You can also rejoin the State Second Pension if it suits you better. You would need to consider your overall pension position in deciding whether to rejoin the State Second Pension. If your occupational scheme, stakeholder pension or personal pension is not contracted out, you can contribute to it as well as paying into the State Second Pension. Even if you contract out of the State Second Pension, you may still be able to build up 17

some rights to it. For the tax year 2004/05, a member of a contracted-out occupational scheme earning between 4,108 and 26,600 will get a State Second Pension top-up. A person contributing to a contracted-out personal pension or stakeholder pension earning between 4,108 and 11,600 in the tax year 2004/05 will also get a State Second Pension top-up for that year. The top-up reflects the more generous additional pension provided by the State Second Pension. Only earnings on which standard rate National Insurance contributions are paid (or are treated as being paid) count for these purposes. If you want to know more about your options, please see: Occupational pensions Your guide (PM3); Personal pensions Your guide (PM4); Contracted-out pensions Your guide (PM7); Stakeholder pensions Your guide (PM8); and State pensions for carers and parents Your guide (PM9). See page 36 for details about how you can get copies of these guides. 18

When can I get State Second Pension? Example of how State Second Pension can help a low earner Robin works part time in a small supermarket warehouse. He earns 7,500 a year. This doesn t leave him enough spare cash to save for a private pension. Under the State Second Pension rules, we will treat Robin as though he had earnings of 11,600 in 2004/05, and his additional State Pension will build up at a faster rate. As a result, Robin will build up an additional pension which is more than twice as much as he would have got from SERPS. Example of how State Second Pension can help a carer Neela is 31 and has been in full-time work since the age of 18. Her daughter Mina was born on 1 December 2000 and Neela decides to stay at home to look after her. She does not plan to return to work until September 2007. As long as Neela is the person who has claimed and been awarded Child Benefit, she will qualify for Home Responsibilities Protection to protect her basic State Pension 19

and will also build up additional State Pension through State Second Pension for each full tax year since 6 April 2002 (when State Second Pension began) that she is at home looking after Mina until Mina s sixth birthday. This means Neela will qualify for State Second Pension for the four years from 6 April 2002 until 5 April 2006. This will be worth about 4.50 a week extra on her State Pension. Example of how someone who is ill or disabled can be helped by the State Second Pension Derek has worked for 37 years, but becomes ill in September 1999. He is too ill to return to work, so he gets long-term Incapacity Benefit until he reaches State Pension age in May 2010. Derek qualifies for a State Second Pension based on each full tax year for which he gets long-term Incapacity Benefit between 6 April 2002 (when State Second Pension began) and his State Pension age. This is because, at his State Pension age, Derek has paid Class 1 National Insurance contributions for more than one-tenth of his working life since 1978 and so he passes the Labour Market Attachment Test. Derek s State Second Pension will be worth about 9 a week on his State Pension in 2004/05 terms. 20

You may want to get further information about pensions from Citizens Advice, your employer or your union (if you belong to one). If you are not sure what to do for the best, you can get advice from a financial adviser. But remember, if you see an adviser you may have to pay for their advice. When can I get additional State Pension (SERPS and State Second Pension)? Like the basic State Pension, you can get the additional State Pension when you reach State Pension age. Inherited additional State Pension A surviving husband or wife may be able to inherit some or all of their former husband s or wife s additional State Pension. The maximum amount of State Second Pension that a surviving husband or wife can inherit is 50%. For information about inheriting SERPS, see the guide Inheritance of SERPS Important information for married people (SERPSL1). See page 32 for details of how you can get a copy of this guide. 21

Other things that could affect your pension What if I get divorced? If you get divorced or have your marriage annulled, the courts have to take into account the value of all your assets, including the value of your pension entitlement. This is so that the courts can decide how all your assets should be divided. Since 1 December 2000, couples whose marriages end in divorce or annulment can share the value of their pension entitlement. The idea is to provide greater flexibility and choice for the divorcing couple and the courts. Pension sharing is not compulsory it is an option available to divorcing couples who have entitlement to second pensions, such as: an occupational pension; a stakeholder pension; a personal pension; and the additional State Pension. Pension sharing does not apply to: the basic State Pension, as divorced people can already replace their own contributions 22

record with their husband s or wife s record for the period the marriage lasted; couples who started divorce or annulment proceedings before 1 December 2000; or couples who separate but do not divorce. Pension sharing only applies to divorce proceedings which started on or after 1 December 2000. If you want to know more about how divorce affects your pension, you may want to get advice from a lawyer or an independent financial adviser (or both). If you live in England or Wales, you might also find the guide I want to apply for a Financial Order (D190) helpful. See page 31 for details about how you can get a copy of this guide. In Northern Ireland, a court can make a pension sharing order in connection with proceedings for a divorce or annulment. In Scotland, afinancial order can be made as part of divorce proceedings. Another guide you may find useful is Pensions for women Your guide (PM6). See page 36 for details about how you can get a copy of this guide. 23

24 Bereavement benefits For married men and women under State Pension age, bereavement benefits are available. Bereavement Payment can also be paid to you if you are over State Pension age and your husband or wife was not entitled to a State Pension based on their own contributions record when they died. You should think about these bereavement benefits as part of your overall financial plans. The system of bereavement benefits does not affect women already getting widows benefits under the previous scheme. For more information, please see the leaflet Widowed? (GL14). See page 32 for details about how you can get a copy of this leaflet. Living abroad If you move abroad to work before you reach State Pension age, you may not build up entitlement to a State Pension (the basic State Pension and any additional State Pension) for those years. However, this depends on your particular circumstances (for example, whether it is a UK company you work for or a foreign one). If you go to live abroad permanently, you will not get a yearly increase in your State

Thinking of living abroad? Pension (including your additional State Pension) unless you live in a European Economic Area country (including Switzerland) or a country that the UK has an agreement with that allows for these increases (known as upratings ). To find out which countries these are, and how UK state pensions are paid to people abroad, please see the leaflet Going abroad and social security benefits (GL29). See page 32 for details about how you can get a copy of this leaflet. If you plan to live abroad when you retire, the pension you get from an occupational scheme will increase each year in line with the scheme rules and current legislation. If you have just come to Great Britain, or are returning after a period abroad, the rules for some benefits are different, even if you are a United Kingdom national. To find out more, please see the leaflet Coming from abroad and social security benefits (GL28). See page 32 for details about how you can get a copy of this leaflet. 25

What is my State Pension likely to be? If you want to know how much State Pension you may get when you retire, you can contact the Retirement Pension Forecasting Team on 0845 3000 168 and they will fill in a forecast application form for you over the phone. If you have speech or hearing difficulties, a textphone service is available on 0845 3000 169. Or, you can write to RPFT, The Pension Service, Tyneview Park, Whitley Road, Newcastle upon Tyne, NE98 1BA for a forecast form (BR19) and a return envelope. You can get form BR19 from your nearest social security office, Jobcentre, Jobcentre Plus or pension centre (details are in your phone book), or you can download the form from the resource centre of The Pension Service website at www.thepensionservice.gov.uk Once we have received your filled-in application form, we will send you a forecast of how much your State Pension is likely to be. This forecast will help you to decide whether you are currently saving enough for your retirement needs, and what more you may need to do. 26

The State Pension forecast is based on our knowledge of your current circumstances, and these could change. So, your forecast will be most accurate if you are near to your State Pension age. But it is best not to put off applying for your forecast until you are close to State Pension age. That way, you will have more time to make additional pension arrangements if you think your State Pension will not be enough to give you the lifestyle you want when you retire. We will automatically send you an estimate of your State Pension entitlement four months before you reach State Pension age, along with an invitation to claim your State Pension. But to do this we need your up-to-date address, so you must make sure that you tell us if you move. What do I need to do now? Your State Pension forecast will tell you how much State Pension you are likely to get. You can then decide whether this will give you the income you want when you retire. If not, think about making extra pension arrangements. 27

You can find out more about state pensions in A guide to State Pensions (NP46). See pages 32 and 36 for details about how you can get a copy of this guide. You can also contact your nearest social security office, pension centre or Jobcentre (details are in your phone book) if you have questions about the State Pension. Please have your National Insurance number handy, because we need it to find your records. You may want to read some of the other guides in this series as a first step towards planning for your future. 28

Where can I get more help?

Directory Where we refer to phone numbers which begin with 0845, they will be charged at the local rate based on current charges from BT landlines. Charges for calls from mobile phones and other networks may be different. For basic guidance on the different types of pension, and information about state pensions, you can contact Citizens Advice (details are in your local phone book). You can also visit their website at www.citizensadvice.org.uk For information about Carer s Allowance, you can contact the Carer s Allowance Unit on 01253 856 123. If you have speech or hearing difficulties, a textphone service is available on 01772 899 489. Or, contact the freephone Benefit Enquiry Line on 0800 88 22 00. If you have speech or hearing difficulties, the textphone number is 0800 24 33 55. If you are 60 or over, you can apply for Pension Credit by calling our freephone line on 0800 99 1234.The line is open from 8am to 8pm Monday to Friday and from 9am to 1pm on Saturdays. If you have speech or hearing difficulties, the textphone number is 0800 169 0133. 30

Where to get help and information To change the person who is claiming Child Benefit, contact the Child Benefit Office by calling 0845 302 1444 from 8am to 5.30pm, Monday to Friday. If you have speech or hearing difficulties, a textphone service is available on 0845 302 1474. You will need to give your full name and your Child Benefit reference number. Or, you can write to the Child Benefit Office at the Inland Revenue, PO Box 1, Newcastle upon Tyne, NE88 1AA. You can also email us at child.benefit@ir.gsi.gov.uk Other publications you may find useful I want to apply for a Financial Order (D190) If you live in England or Wales, you can get this guide from your county court (details are in your local phone book) or from the Court Service website at www.courtservice.gov.uk 31

Widowed? (GL14) You can get this leaflet from your nearest social security office or Jobcentre (details are in your phone book). Caring for someone? (SD4) You can get this leaflet from your nearest social security office or Jobcentre (details are in your phone book). Going abroad and social security benefits (GL29) and Coming from abroad and social security benefits (GL28) You can get these leaflets from your nearest social security office or Jobcentre (details are in your phone book). Or, you can visit The Pension Service website at www.thepensionservice.gov.uk A guide to State Pensions (NP46) This guide gives you more information about state pensions. You can get this guide from your nearest social security office, pension centre or Jobcentre (details are in your phone book) or by calling us (see page 36 for contact details). Or, you can see this leaflet on the resource centre on The Pension Service website at www.thepensionservice.gov.uk Inheritance of SERPS Important information for married people (SERPSL1) You can get this leaflet from your nearest 32

Where to get help and information social security office, pension centre or Jobcentre (details are in your phone book), or by calling the Inherited SERPS enquiry line on 0845 600 6116. If you have speech or hearing difficulties, a textphone service is available on 0845 602 1913. Lines are open from 8am to 7pm Monday to Friday and from 9am to 1pm on Saturdays. Or, you can see this leaflet on the resource centre of The Pension Service website at www.thepensionservice.gov.uk You can read more about inheriting SERPS on The Pension Service website at www.thepensionservice.gov.uk/serps Pensioners guide (PG1) This guide tells you about the range of government help and advice available to pensioners. You can get a copy by calling 0845 6 065 065 from 7am to 11pm every day. If you have speech or hearing difficulties, a textphone service is available on 0845 606 4064. Or, you can visit the website at www.thepensionservice.gov.uk/retired Pension Credit Pick it up. It s yours (PC1L) This leaflet gives you more information 33

about Pension Credit to help you decide whether you might qualify, how much you could get and how to apply. You can get this leaflet by calling 0845 6 065 065. If you have speech or hearing difficulties, a textphone service is available on 0845 606 4064. The leaflet is also available on the resource centre of our website at www.thepensionservice.gov.uk Our guides in this series A guide to your pension options (PM1) This guide gives a general summary of the pensions system and suggests points you should think about. State pensions Your guide (PM2) This guide explains whether you are likely to get a State Pension and how we work them out. It includes more details about the State Second Pension, including examples of how it can help people in different circumstances. Occupational pensions Your guide (PM3) You will find this guide helpful if you are working for an employer who runs a pension scheme and you are a member of the scheme or are thinking of joining. Personal pensions Your guide (PM4) If you are thinking about a personal pension, this guide tells you the sort of questions you 34

Where to get help and information should be asking and how you can decide if a personal pension is best for you. Pensions for the self-employed Your guide (PM5) If you are self-employed you have fewer options but you still have important decisions to make. This guide tells you how you can decide what will be best for you. Pensions for women Your guide (PM6) As a woman, the pattern of your working life may be different from a man s. For example, you may be more likely to have a career break to raise a family. This guide gives you an idea of the options available, and what you should think about when you plan your pension. Contracted-out pensions Your guide (PM7) This guide gives you information about contracting out of (leaving) the State Second Pension. Stakeholder pensions Your guide (PM8) This guide tells you what you need to think about before taking out a stakeholder 35

pension. It will help you decide whether this kind of pension is best for you. State pensions for carers and parents Your guide (PM9) If you have given up work, or aren t earning very much because you are caring for someone, this guide may help you. It explains what to do to make sure that you get as much State Pension as you can in the future. To order copies of any of the guides in this series, you can call us on 0845 7 31 32 33. Calls are charged at local rates and the line is open 24 hours a day. If you have speech or hearing difficulties, a textphone service is available on 0845 604 0210. Or, you can write to us for any of these guides at Pension Guide, Freepost, NAT 5951, Ashby de la Zouch LE55 7QP (you don t need a stamp). You can also see these guides on our website at www.pensionguide.gov.uk All guides are available in Welsh, on audiotape and in Braille. 36

For more information on any of the pension options below, please call 0845 7 31 32 33 or visit www.pensionguide.gov.uk State Personal Occupational Women Self-employed Contracted-out Stakeholder Carers and parents

For more copies of this leaflet, or for a Welsh, audiotape or Braille version, you can phone 0845 7 31 32 33. You can also access this leaflet on the internet at www.thepensionservice.gov.uk ISBN: 1-85197-998-0 We will regularly update this guide. It gives general guidance only and should not be treated as a complete statement of the law. Crown copyright Produced by The Pension Service Printed in the UK April 2004 PM2 General enquiries 0845 60 60 265 (textphone users call 0845 60 60 285) www.thepensionservice.gov.uk