Pensioners are being reminded that they could face delays in receiving their State Pension if they do not submit a claim. The State Pension is not paid automatically, meaning retirees may be left waiting if they fail to apply.
State Pension Not Automatic
Latest figures from the Department for Work and Pensions (DWP) show that the State Pension currently provides regular financial support to 13.2 million older people across the UK. This benefit is available to those who have reached the UK Government's qualifying retirement age and have made at least 10 years of National Insurance Contributions.
However, as reported by the Daily Record, many people approaching the official retirement age this year may not realise that the State Pension is a contributory benefit and is not automatically issued by the DWP. The payment must be claimed, otherwise pensioners could experience delays in receiving their first payment of up to £241.30 weekly, or £965.20 every four-week payment period.
Why the State Pension Isn't Automatic
The money is not automatically sent when someone reaches State Pension age because some people choose to defer claiming in order to continue working and build up more towards their pension pot. This is especially relevant for those who have not made the full 35 years of National Insurance Contributions, or were 'contracted out'.
DWP guidance states: "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."
The guidance then outlines that you can either claim your State Pension or postpone (defer) claiming it. It adds: "If you want to defer, you do not have to do anything. Your pension will automatically be deferred until you claim it."
This means that unless you respond to the letter confirming you wish to begin receiving your State Pension, no payments will be made, as the DWP will treat any lack of response as an intention to defer.
Benefits of Deferring Your State Pension
Delaying your State Pension could increase the weekly payments you receive when you eventually make a claim, provided you defer for a minimum of nine weeks. Your State Pension grows by the equivalent of one per cent for every nine weeks you defer, which works out at just under 5.8 per cent for every 52 weeks.
The additional sum is paid alongside your standard State Pension payment, though it is essential to be aware that any extra income received through deferring may be subject to taxation. Further information is available on GOV.UK.
It is equally important to note that deferred State Pensions increase annually in line with the September Consumer Price Index (CPI) inflation rate, rather than the highest measure of the Triple Lock policy.
State Pension Age Changes
The State Pension age began a phased increase from 66 to 67 in April, with the transition expected to be completed for all men and women throughout the UK by 2028. This scheduled adjustment to the official retirement age has been written into legislation since 2014, with a further rise from 67 to 68 set to be introduced by the mid-2040s.
You can claim your State Pension online.
Check How Much You Can Get
You can access a State Pension forecast online through the Check your State Pension service. This resource provides personalised information, including your State Pension age, a projection of your potential State Pension sum and whether you have the option to increase this amount.
It also allows you to examine your National Insurance contribution record. Additional information on postponing your State Pension can be found on the GOV.UK website.
