The State Pension age has begun a phased increase from 66 to 67, affecting those born after certain dates. This change, legislated since 2014, will be completed by 2028, with a further rise to 68 expected by the mid-2040s.
State Pension Not Automatic
According to the Department for Work and Pensions (DWP), the State Pension currently supports 13.2 million older people in the UK, including over one million in Scotland. However, it is not paid automatically. Retirees must claim it, or they may face delays in receiving their first payment, which can be up to £241.30 per week or £965.20 every four weeks.
Many people approaching retirement may not realize that the State Pension is a contributory benefit requiring a claim. The DWP sends a letter two months before State Pension age, but if no response is given, it is assumed the person wishes to defer.
Deferring Your State Pension
Deferring can increase weekly payments by 1% for every nine weeks deferred, equating to nearly 5.8% per year. However, any extra amount may be taxable. It's important to note that deferred pensions increase annually based on the September CPI inflation rate, not the Triple Lock.
First Payment Details
The first payment is typically made within five weeks of reaching State Pension age, with full payments every four weeks thereafter. Retirees can choose weekly or fortnightly payments to reduce the initial delay.
Payment Days Based on National Insurance Number
- 00 to 19: Monday
- 20 to 39: Tuesday
- 40 to 59: Wednesday
- 60 to 79: Thursday
- 80 to 99: Friday
Understanding Your Starting Amount
The DWP calculates a 'starting amount' for the new State Pension based on National Insurance records as of April 5, 2016. This is the higher of the amount under the old system or the new system, reflecting any contracted-out periods.
- If less than the full new pension: Each additional qualifying year adds about £6.89 per week (2026/27) until reaching the full amount.
- If more: You receive the higher amount, with the difference as a 'protected payment'.
- If equal: You get the full new State Pension.
Check Your State Pension
Use the Check your State Pension service online for a personalized forecast, including your State Pension age, estimated amount, and National Insurance history.
