Anyone reaching official retirement age this year has been advised they must claim their State Pension in order to receive payments.
State Pensions are issued by the Department of Work and Payments (DWP) and are available in the UK to men and women aged 66 and over. However, people reaching this age may not be aware the payments need to be claimed or they could miss out on up to £179.60 a week - as The Daily Record reports.
The advice is issued in official DWP guidance, which warns people that State Pension payments are not automatic. It adds: "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.”
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It then clarifies that you can either claim your State Pension or delay (defer) claiming it. The guidance states: “If you want to defer, you do not have to do anything. Your pension will automatically be deferred until you claim it.”
This means people who want to claim State Pensions must respond to this letter to confirm or 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 that any extra payments you get from deferring could be taxed.
State Pension weekly payment rates
State Pension payment rates will rise by 3.1% today. The new rates are shown below:
- Full New State Pension: £185.15 (from £179.60)
- Basic Old State Pension (Category A or B): £141.85 (from £137.60)
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