How to check your pension in the UK?

For every Pole working abroad, the question of qualifying for a pension and how much it will be is a matter of the utmost importance. The British pension system is not the simplest, and as a contribution payer it is worth knowing what retirement future you can expect.

So if you are wondering what formalities you need to complete to become a pensioner in the UK, or you want to find out what the pension system will look like after Brexit, here is everything you should know.

State Pension age in the UK

The pension system in the United Kingdom differs significantly from the Polish one. Benefits in the UK are considerably higher than those offered in Poland, which is why so many people taking up work in the UK are interested in qualifying for one. In 2016, a pension reform was introduced that changed the State Pension age. It will be increased gradually, with a target of 68. The reform also raised the state pension, which currently stands at £168.80 per week.

To find out exactly when you can retire, it is worth using the UK pension calculator. The calculator can be found on the government website gov.uk/state-pension-age. Once on the site, all you need to do is fill in your personal details and the confirmation of when you can retire will appear on your screen.

Who is entitled to a pension in the United Kingdom

Everyone working legally in the United Kingdom can receive a pension. Qualifying for the benefit and its amount depend on two factors:

• your work record,

• your age.

The State Pension age in the UK for people born after 5 April 1978 will be 68, which means they will be able to retire in 2046. People born earlier will be able to retire sooner.

The work record required to retire and receive the full pension is currently 35 years. However, people who have worked in the United Kingdom for more than 10 years can claim a partial pension, which will often still be higher than the pension paid in Poland.

Types of pensions in the UK

The pension in England comes in three different forms. These are:

• State Pension (the basic state pension) - the type of benefit most similar to the one paid out by the Polish ZUS. It is a pension paid at the same rate to everyone who pays National Insurance (NI).

• Personal Pension (private pension) - a type of retirement saving you pay into individually while working in the UK, most often through pension funds or products offered by insurance companies.

• WorkPlace Pension (workplace pension fund) - also known as a Company Pension or Occupational Pension, i.e. a benefit arranged through your place of work. Every employer in the UK is required to set up a pension scheme, deducting a set percentage of your salary and putting that money aside towards your future pension.

What pension can you expect after 10 years of working in the UK?

The pension in the UK after 10 years of work, taking into account the State Pension alone, was around £48 per week in 2020. However, there is a good chance that while working in the UK you were also saving for retirement through your workplace during that time.

You can check the exact amount of your expected UK pension by logging in on the government website (gov.uk/personal-tax-account), where you can keep track of the money you have put aside.

Pensions in the United Kingdom after Brexit

Pensions paid to Poles became a hot topic in the context of the United Kingdom leaving the European Union. The pension question has still not been resolved and there are no clear rules determining whether and how pension benefits will be paid from 2021. It appears that the pensions of people currently claiming are not at risk, although those who have worked less than 10 years in the UK are still unsure of their position. Let’s hope this issue is resolved as soon as possible.

A UK pension is definitely an investment in the future worth considering, especially if you plan to spend most of your working life in the UK. The benefit may turn out to be significantly higher than the one paid in Poland, but you will have to wait longer for it - until the age of 68.