高等教育課程topic 2a

SQAHigherNationalDiploma

英國高等教育文憑課程

PensionProvision

養老金規劃

RenminUniversity|Dr.EdisonYSH｜AcademicYear2015-2016

中國人民大學｜楊熙博士

｜2015-2016學年

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OrientationandPre-LectureWorkshop

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Topic2:TheStatePension(GeneralStudy)

Topic2:TheStatePension(2016TheNewStatePension)

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4 Topic2:TheStatePension(GeneralStudyExtension)|IntroductionLevelTextbookrequired

2 Topic1:Whypensionareimportant?

Week Topics

Topic2:The

StatePension(GeneralStudy)

Dr.EDISONX.Y.杨熙

edison.yang@

ChangesfromApril2010meanthatmostpeoplewillnowgetafullBasicStatePensionwhentheyretire.

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YoumightgetsomeadditionalStatePensiontoo.

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Ifyouneedextra,oneoptioncouldbedelaythedatewhenyoustartdrawingthesepensions.

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TheStatepensionmaynotseemverygenerousbutitprovidesavaluablefoundationonwhichtobuildyourretirementincome.

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TherearestepsyoucantaketoprotectyourentitlementtoStatePension,andtoboosttheamountyougetonceyoustarttoreceivethepayments.

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KEYFACTS

TheStatePensionistheonlycompulsorypartoftheUKpensionsystem.

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Ifyouwork,youmustcontributetoit

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Ifyoudon’twork,inmanycases,youarecreditedasifyouarepayingin.

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KEYFACTS

TheStatePensionhastwoparts:

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TheBasicStatePension,whichnearlyeveryonegets;

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TheAdditionalStatePension,whichismainlyforemployees.

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IssuesdiscussedinTopic2:

HowtheStatePensionfitsintoyouretirementplanning

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HowyoubuildupbasicStatePension

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HowyoubuildupadditionalStatePension

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Whatitmeansto‘contractout’oftheadditionalpensionscheme

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IssuesdiscussedinTopic2:

HowtochecktheStatePensionyou’llget

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StepsyoumaybeabletotaketoboostyourStatePension

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Howmeans-testedbenefitsinteractwithyoursavingforretirement

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TheStateandYourRetirementPlanning

StatePensionisthefoundationofyourretirementincome.

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Ontopofthisyoucanbuildadditionalsavings,throughpensionschemesandotherinvestment.

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TheStateandYourRetirementPlanning

THIRDTIERPENSION

Othersavingandinvestments

Extracontributionstosecondtierpensionschemes

SECONDTIERPENSION

PersonalPensionOccupationalPensionAdditionalStatePension

FIRSTTIERPENSION

BasicStatePension

TheStateandYourRetirementPlanning

TheBasicStatePensionisthefirsttier.

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In2010-11,thefullbasicpensionprovidesjustover5000yearforasingleperson.

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Ifthatwasallthepensionincomeyouhad,youwouldbebelowtheproverblineandeligibleformeans-testedbenefitstotopupyourincome.

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FIRSTTIERPENSION

BasicStatePension

TheStateandYourRetirementPlanning

Mostpeoplereachregimentwithsomesecond-tierpensionaswell.

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Second-tierpensionaremainlypensionschemesyoubelongtothroughyourworkplaceorequivalentpersonalpensionifyoudon’thaveaccesstoawork-basedschemeforexample,ifyouareself-employed.

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SECONDTIERPENSION

PersonalPensionOccupationalPensionAdditionalStatePension

TheStateandYourRetirementPlanning

THIRDTIERPENSION

Othersavingandinvestments

Extracontributionstosecondtierpensionschemes

ThebasicandadditionalStatePensiontogether,onaverage,takepensionersabovethepovertyline.

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Occupationalpensionsusuallydobetterthanthat,andyoumaybeabletousethird-tireretirementplanning-voluntaryextrasavingandinvestments-totopupyourretirementincomeevenfurther.

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TheStateandYourRetirementPlanning

“Payasyougo”

Statepensionarenotretirementsavinginthepuresense,becauseyoudonotbuildupyourownfundofsaving.

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InsteadyoupayNationalInsurance(NI)contributions-ataxonyourearnings-whicharerecordedandentitleyoutoclaimaspecifiedamountofpension.

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TheStateandYourRetirementPlanning

“Payasyougo”

Thestateschemeworksona‘pay-as-you-go’basissothattheNationalInsuranceyoupaynowisactuallyusedtopaythepensionofpeoplewhoarecurrentlyretired.

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Inasimilarway,whenyoucometoretire,yourStatePensionwillbepaidoutofthetaxontheearningsofpeoplewhoareworkingthen.

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TheBasicStatePension

TheBasicStatePensionispaidtoeveryonewhohasbeencreditedwithenoughNationalInsurancecontributions.

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Itisoftencalleda‘flat-rate’pension,becauseeveryonewhoqualifiesforthefullpensionsgetsthesame.

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ButpeoplewhohavealesscompleteNationalInsurancerecordgetareducedamount.

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TheBasicStatePension-Howmuch?

BuildingupBasicPension-KeyTerms

NationalInsurancecontributionsAtaxpaidbymostpeoplewhowork.Therearedifferenttypesofcontributions,called‘classes’.Payingsomeclassesofcontributionentitlesyoutoclaimstatebenefits,suchastheStatePension.

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BuildingupBasicPension-KeyTerms

TaxYearAperiodofayearrunningfrom6Apriltothefollowing5April.

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Forexample,‘2010-11’meanstheyearfromApril6April2010to5April2011.Generally,bothtaxesandstatebenefitsaresetinrelationtotaxyears.

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BuildingupBasicPension-KeyTerms

WorkingTaxCredit(WTC)Astatebenefitforpeoplewhoareinwork,butonalowincome.

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BuildingupBasicPension-KeyTerms

WorkinglifeThetaxyearsfromtheoneinwhichyoureachage16tothelastcompletetaxyearbeforeyoureachStatePensionage.

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BuildingupBasicPension-KeyTerms

QualifyingyearAtaxyearthatcountstowardsyourbasicStatePension,becauseyouhavepaidorbeencreditedwithenoughNationalInsurancecontributions.

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BuildingupBasicPension-KeyTerms

StatePensionageAgeatwhichyoubecomeeligibletoclaimtheStatePension.Thisisbeinggraduallyraisedend,dependingonwhenyouwereborn,isbetween65and68formenandbetween60and68forwomen.

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BuildingupBasicPension

Togetthefullbasicpension,youhavetohavepaidorhavebeencreditedwithNationalInsurancecontributionsforatleat30ofthetayearsinyourworkinglife.

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Eachyearforwhichyouhaveenoughcontributionsorcreditiscalleda‘qualifyingyear’.

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BuildingupBasicPension

‘Workinglife’hasanofficialdefinitionsandmeansthetaxyearsfromtheoneinwhichyoureachage16tothelastcompletetaxyearbeforeyoureachStatePensionage.

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Forexample,ifyourStatePensionageis65,yourworkinglifewillbe49years.

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Ifyoudonothaveenoughqualifyingyearsforfullpension,yougetareducedamount.

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Buteveryyearofcontributionsorcreditsearnsyouatleastsomebasicpension.

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BuildingupBasicPension

Ifyourownbasicpensionisreducedtolessthanthefullamount,abasicpensionforawife,husbandorregisteredcivilpartnerbasedonyourcontributionrecordisreducedbythesameproportion.

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Whogetit?

Mostemployees,providedtheyearnatleastaminimumamount(97aweekin2010-11)oraregettingWorkingTaxCredit.

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Whogetit?

Self-employedpeople,unlesstheyhaveoptednottopayNationalInsurancecontributions

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Thisispossiblewheretheirprofitsarelessthan5075forthe2010-11taxyear

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Whogetit?

PeoplewhoarebeingcreditedwithNationalInsurance,forexample,whileclaimingstatebenefitsduringaperiodofillness,unemploymentormaternityleave.

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Whogetit?

PeoplenotintheablecategorieswhovolunteertopayNationalInsurancecontributions.

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QualifyingYear

QualifyingYear

NationalInsurance

QualifyingYear

NationalInsurance

QualifyingYear

NationalInsurance

QualifyingYear

NationalInsurance

QualifyingYear

Forayeartocutasqualifying,youmustbasicallyhavepaidaholeyear’sworthofcontributions:forexample,52weeksofearningsatleastaminimumamountonwhichyouhavepaidClass1contributions.

QualifyingYear

PeriodswhenyouarenotpayingNationalInsuranceusuallyappearasgapsinyourNationalInsurancerecordandcanreducethebasicpensionyou’lleventuallyget.

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QualifyingYear

But,insomesituation,youareoutofworkingowningtoillnessoronmaternityleave,forexample,youcangetNationalInsurancecredits.Before6April2010,forperiodsspendinglookingafterayoungchildyouwereawardedHomeResponsibilitiesProtection(HRP).

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Sincethatdate,yousimplyearncreditsifyouarecaringforaneligiblechildandearlierperiodsofHRPhavenowbeenconvertedtocreditsinyourNationalInsurancerecords.

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QualifyingYear

QualifyingYear

QualifyingYear

QualifyingYear

NationalInsuranceCredits

Insomesituationyoumayget

NationalInsurancecredits,

whichplugwhatyouotherwisebegapsinyourNationalInsurancerecord.

Youmightgetcreditsinthefollowingsituation:

NationalInsuranceCredits

Atthestartofyourworkinglife

Fortheyearsinwhichyouhadyour16th,17thand18thbirthdaysifyouarestillatschoolandwerebornonorafter6April1957.

Youshouldgetthesecreditsautomatically.

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NationalInsuranceCredits

Whiletraining

Fortheyearsinwhichyoutakepartinanapprovedtrainingcourseifyouwerebornonafter6April1957

Goingtouniversitydoesnotcountasanapproved

course.

Youshouldnormallygetthesecreditsautomatically.

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NationalInsuranceCredits

Whenyouearnless

thanthelowerearningslimits(97aweekin

2010-11)andyouareclaimingWorkingTaxCreditsYoushouldnormallygetthesecreditsautomatically.

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NationalInsuranceCredits

Whiletemporarilyworkingabroad

iftheUKhasareciprocalagreementwiththecountryinwhichyouarworkingandyouarepayingcontributionsthere.

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NationalInsuranceCredits

Whileoutofworkbecauseofunemploymentorillness

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Note1:

Ifyou’reclaimingJobseeker’sAllowanceorEmploymentandSupportAllowance,youshouldgetthesecreditsautomatically.

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NationalInsuranceCredits

Whileoutofworkbecauseofunemploymentorillness

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Note2:

IfyouaregettingStatutorySickPayandtheyearinwhichyougetitwouldnototherwisebeaqualifyingyear,youneedtoclaimthiscreditbywiringtotheNICOContributorGroupby31Decemberfollowing

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theendofthetaxyearinwhichyouweresickleave.

NICO,NationalInsuranceContributionOffice,thepartofHMRCthatdealswithhecollectionandrecordingofNIC.

NationalInsuranceCredits

whileyouareonmaternity(oradoption)leave

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andreceivingStatutoryMaternityorAdoptionPayandtheyearinwhichyougetitwouldnototherwisebeaqualifyingyear.

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NationalInsuranceCredits

youareaparent

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ofachildundertheageof12ofwhomyouaregettingChildBenefit.

Creditsareawardedautomatically.

Youarealsoeligibleifyouareafostercarer,butinthatcaseyouwillneedtoclaimthecarer’scredit.

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NationalInsuranceCredits

youareacarer

lookingaftersomeonewithadisabilityorfrailthrougholdage.

YougetcreditsautomaticallyifyouareclaimingCarer’sAllowance.Otherwise,youwillneedtomakeaclaimforthecarer’scredit.

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NationalInsuranceCredits

youareonjuryservice

andyourearningarebelowacertainlimit(97aweekin2010-11)

Thisappliestotheyearfrom1988-9onwards.

YouneedtoclaimthiscreditinwritingtotheNICOContributionsGroupby31Decemberfollowingtheendofthetaxyearinwhichyouwereonjuryservice.

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NationalInsuranceCredits

YouareamanunderStatePensionagebutolderthantheStatePensionageforwoman

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YouqualifyifyouarenotpayingNationalInsurancecontributionoralreadygettingcreditsforsomeotherreasons.

Youdonothavetosignonasunemploymentandshouldgetthesecreditsautomatically.

Women’sStatePensionageisgraduallyincreasingandwhenitmatchestheStatePensionageformenfromApril2020onwards,thistypeofcreditwilnolongerbeavailable.

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NationalInsuranceCredits

CaseStudy

Clareleftschoolat18andwentontouniversitytostudyEnglishLiteratureforthreeyears.

ShegetsNIcreditsforthefatheryearinwhichshehadher16th,17th,and18thbirthdaysandwasstillat