Pensioners could see their payments delayed if they fail to do something (Image: Getty)
Pensioners are reminded that they could see a delay in their payments if they don’t make a claim. State Pension is not automatically paid, meaning you could be left waiting if you don’t apply.
The latest statistics from the Department for Work and Pensions (DWP) show the State Pension currently provides regular financial support for 13.2 million older people across the country.
This payment is available for those who have reached the UK Government’s eligible retirement age and have paid at least 10 years’ worth of National Insurance Contributions.
However, as reported by the Daily Record, people approaching the official age of retirement this year may not be aware the State Pension is regarded as a contributory benefit and is not paid automatically by the DWP. The payment needs to be claimed, or retirees could face a delay in receiving their first payment of up to £241.30 each week, or £965.20 every four-week pay period.
The money is not paid automatically when someone reaches State Pension age as some people choose to defer making a claim in order to keep working and generate more towards their pension pot, especially if they have not paid the full quota of 35 years’ worth of National Insurance Contributions, or were ‘contracted out’.
State Pension is not automatically paid, meaning you could be left waiting if you don’t apply (Image: Getty)
DWP guidance explains: “You do not get your State Pension automatically – you have to claim it. You should get a letter no later than two months before you reach State Pension age, telling you what to do.”
It then clarifies you can either claim your State Pension or delay (defer) claiming it. It states: “If you want to defer, you do not have to do anything. Your pension will automatically be deferred until you claim it.”
Which means, unless you respond to the letter confirming you want to start claiming State Pension, you will not receive any payments as the DWP will interpret no response as a wish to defer.
Deferring your State Pension could increase the payments you get each week when you decide to claim it, as long as you defer for at least nine weeks. Your State Pension increases by the equivalent of 1% for every nine weeks you defer, this works out as just under 5.8% for every 52 weeks.
The extra amount is paid with your regular State Pension payment, however, it’s important to be aware any extra payments you get from deferring could be taxed – find out more on GOV.UK here.
It’s also important to be aware deferred State Pensions increase each year in line with the September Consumer Price Index (CPI) inflation rate and not the highest measure of the Triple Lock policy.
The State Pension age started a phased rise from 66 to 67 in April, with the increase due to be completed for all men and women across the UK by 2028. The planned change to the official age of retirement has been in legislation since 2014 with a further rise from 67 to 68 set to be implemented by the mid-2040s.
You can claim your State Pension online here.
Check how much you can get
You can get a State Pension forecast online from the Check your State Pension service here. This provides personalised information, including your State Pension age, an estimate of how much State Pension you may get at that point and if you can increase this amount. It also allows you to view your National Insurance contribution history.
More information about deferring your State Pension can be found on the GOV.UK website here.
