Brits set to retire this year are being reminded that their State Pension may be delayed if they do not actively claim it. Unlike some benefits, the State Pension is not paid automatically by the Department for Work and Pensions (DWP).
Why You Must Claim Your State Pension
The State Pension is a contributory benefit, meaning it requires a formal claim. Currently, 13.2 million older people in the UK receive this regular financial support. To qualify, you must have reached the UK Government's eligible retirement age and paid at least 10 years of National Insurance Contributions.
According to the Daily Record, many approaching retirement this year may be unaware that they need to claim. Failing to do so could result in missing payments of up to £241.30 per week, or £965.20 every four weeks.
How to Claim or Defer
The DWP sends a letter no later than two months before you reach State Pension age, explaining what to do. If you want to claim, you must respond. If you do nothing, your pension is automatically deferred. Deferring can increase your weekly payments by 1% for every nine weeks deferred (just under 5.8% per year), but any extra amount may be taxed.
Important Considerations
- Deferred State Pensions increase annually based on September CPI inflation, not the Triple Lock.
- The State Pension age is rising from 66 to 67 by 2028, with a further rise to 68 by the mid-2040s.
You can claim your State Pension online via GOV.UK. To check your forecast, use the Check your State Pension service. For more on deferring, visit the GOV.UK website.
