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Linda Howard & Sonia Sharma

State Pension payment delay warning for anyone reaching retirement age this year

People approaching retirement age are being reminded of the procedure of claiming State Pension - or risk their payments being delayed.

State Pension is available for those who have reached the Government’s eligible retirement age, which is currently 66 for both men and women, and have paid at least 10 years' worth of National Insurance Contributions. However, many people approaching the official retirement age in 2023 may not be aware that this contributory benefit is not paid automatically by the Department for Work and Pensions (DWP) and needs to be claimed, or they could miss out on payments of up to £185.15 every week.

It 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

Read More: Pensions deadline put back to July 31 after DWP flooded with demand

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 that 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 that 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, reports the Daily Record.

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 - find out more on GOV.UK here.

State Pension weekly payment rates

State Pension payment rates:

  • Full New State Pension: £185.15 (going up to £203.85 in April)
  • Basic State Pension (Category A or B): £141.85 (going up to £156.20 in April)

There are different rules around how much additional payment you could receive depending on when you were born and which State Pension payment you receive - either the old, basic or full, new.

Your first payment

Your first payment will be within five weeks of reaching State Pension age and you will get a full payment every four weeks after that. You might get part of a payment before your first full payment. The letter will tell you what to expect.

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