State Pension currently provides essential financial support for nearly 12.5 million older people across the UK, including some 981,399 retirees living in Scotland. This regular payment is available for those who have reached the UK Government’s eligible retirement age, which is now 66 for both men and women, and have paid at least 10 years of National Insurance contributions.
However, many people approaching the official retirement age this year 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. The reason it is not paid automatically when someone reaches State Pension age is because some people choose to defer making a claim in order to keep working and contribute more towards their pension pot.
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.
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 2022/23
State Pension payment rates for this year are:
- Full New State Pension: £185.15
- Basic Old State Pension (Category A or B): £141.85
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.
More information about deferring your State Pension can be found on the GOV.UK website here.
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