The full Basic State Pension at age 65 for men (60 for women) is £67.50 a week for one person and £107.90 for an individual with a dependent spouse. Couples who have both paid full National Insurance contributions would get £67.50 a week each. The level of the Basic State Pension is reviewed every year which usually results in increases in line with the retail prices index.

With the equalisation of retirement ages, women born after 6 April 1955 will not be able to draw a state pension until age 65.

The Additional State Pension

The State Earnings Related Pension Scheme (SERPS) started in April 1978 for people who are in employment. You should check to see if you are contributing to SERPS through the National Insurance contributions that your employer deducts from your pay.

You can choose to contract-out of SERPS. If you decide to contract-out of SERPS, you will get a rebate on your National Insurance contributions paid into your own pension fund. The rebate invested over the years may give you more or less than the SERPS pension.

Making a choice in one tax year does not commit you to do the same thing in later years, therefore you should review this regularly.

Information on your State pensions

You can get a forecast of your Basic State pension and the State Earnings Related Pension (SERPS) from the Benefits Agency by filling out a special form called BR19.

The DSS leaflet EQP1a explains the changes in women's retirement ages.

Both of these are available from your local DSS office (check the telephone book for the address).

The Minimum Income Guarantee

The Minimum Income Guarantee (MIG) provides a safety net for pensioners who have little or no income on top of the state pension. For those who qualify it guarantees a minimum level of income in retirement which is in excess of the basic state pension.

It is a 'Means Tested' benefit so you have to apply for it to the DSS. They will assess your personal circumstances, taking into account your level of savings, any other household income and whether or not you still work. If you qualify for the MIG you may also be eligible for other benefits, such as housing benefit.

Some people need to consider carefully whether saving for a pension would actually help them at all, particularly if you are over 40, have little pension or other savings and cannot afford to save much. The little you are able to put into a pension may not be enough to bring your total retirement income above the MIG. Therefore you would be funding a benefit which you would have otherwise received from the state.

Further information is available on the DSS Web-Site www.dss.gov.uk.

To find out more and obtain a list of scheme providers, please visit Ask Figaro.