The cliche goes that the only things guaranteed in life is death and taxes.
But in between the two is the promised land of retirement - an event marked for many by reaching state pension age.
As the age for being eligible for a state pension in the UK slips further back as people live for longer, veteran workers will no doubt be keen to do back-of-a-fag-packet sums for how much they can expect to receive when they hang up the professional attire for good.
The state pension is unlikely to be the only money people receive in their old years but here is an indicator of what to expect before a private pension gets taken into consideration.
What is the current state pension age?
The earliest people in the UK can claim their state pension depends when they are born.
Men and women turning 66 at present are currently able to claim a state pension. But the pension age is rising.
The state pension age is scheduled to rise to 67 between 2026 and 2028.
It is due to eventually rise to 68, with the Government having signalled its intention to bring this into force between 2037 and 2039, although an exact timetable hasn't been confirmed.
The past 12 years have seen substantial changes to the retirement age, particularly for women.
Before 2010, women could claim their pension at age 60 but it was increased in the eight years leading up to 2018 and is now increasing in stages, alongside men, until it has reached 68.
Am I eligible for a UK state pension?
Under the system in place since 2016, to claim a state pension when hitting the age-relevant milestone, a person must have made national insurance (NI) contributions for at least 10 years.
To get the full whack, a person will need to have paid or been credited with at least 35 years of NI contributions.
How much is the state pension?
The full level of the state pension under the 2016 scheme is £185.15 a week in 2022/23 , producing an annual income of £9,627.80.
The final amount could be lower, however, if the full 35 years of NI contributions have not been made.
For those with 30 years contributed, they will receive £158.70 per week in this financial year, while those with 10 years of contributions will get the equivalent of £52.90 per week paid into their account on a monthly basis.
State pensions are due to rise in line with the inflation rate in April 2023.
Determined by September’s CPI figure, pensioners are predicted to receive an increase of around 10%, adding an additional £960 a year added to the new state pension in a move that could help some struggling pensioners during the cost of living crisis.
Can I only retire at pension age?
Retirement and the pension threshold are not the same thing - when someone chooses to give up work it comes down to their own financial situation.
Those with generous public or private sector pension plans, in receipt of higher incomes or with substantial savings might choose to retire before being eligible for the state pension.
Likewise, workers can continue to remain in employment after reaching state pension age but will have to factor in the tax implications as the monthly payments count towards a person’s annual tax free allowance of £12,570.
With all employees - no matter how small the firm they work for - now automatically enrolled in workplace pension plans, those in employment since 2010 can expect to receive some sort of non-state pension to top-up what they have earned through NI contributions.
