The Department for Work and Pensions (DWP) has published figures showing that the State Pension Fund currently provides support to approximately 12.7 million older individuals across the UK.
To be eligible for the payment, which is available to both men and women who have reached the State Pension age of 66, individuals must have made at least ten years of National Insurance contributions. However, like many people approaching official retirement age this year, they may not realise that these contributions are not automatically paid by the DWP and must be claimed, or they could risk losing out on weekly payments of £221.20.
The reason why the money is not paid as soon as someone reaches State Pension age is that some people choose to delay their claim in order to continue working and increase their retirement savings, particularly if they have not paid their full 35 years’ worth of National Insurance Contributions, if required or ‘contracted out’.
The DWP has provided guidance saying: “You won’t get your State Pension automatically – you need to claim it. You should receive a letter telling you what to do no later than two months before you reach State Pension age.”
Further clarifying the process, the guidance states that individuals can either claim their State Pension or choose to defer (postpone) their claim, adding: “If you want to defer you don’t need to do anything. Your pension will be automatically deferred until you claim it,” the Daily Record reported.
This means that if you do not respond to the letter confirming your wish to apply for the State Pension, you will not receive any payment as the DWP will interpret your non-response as a request to delay.
Delaying your State Pension can increase the payments you receive each week once you decide to take 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, which works out to just under 5.8% every 52 weeks.
The extra amount is paid alongside your normal State Pension payment, but it is very important to remember that any additional payments you receive as a result of deferral may be taxed – you can find out more at GOV. England is here.
It is also important to know that deferred State Pensions increase each year in line with the September Consumer Price Index (CPI) inflation rate and the top measure of the Triple Lock policy.
New State Pension payment rates 2024/25
Basic State Pension payment rates 2024/25
Your first payment
Your first payment will be within five weeks of reaching State Pension age and after that you will receive a full payment every four weeks. You may receive a partial payment before your first full payment.
The letter will tell you what to expect.
You can also choose to receive your State Pension payments weekly or fortnightly; In this way, there will be a shorter delay in the first payment.
Your State Pension payment date
The day your State Pension is paid depends on your National Insurance number.
Last two digits of your National Insurance number:
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From 00 to 19 – Paid on Monday
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20 to 39 – Paid on Tuesday
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40 to 59 – Paid on Wednesday
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60 to 79 – Paid on Thursday
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80 to 99 – Paid on Friday
DWP ‘starting amount’ for new State Pension
If you have qualifying years on your National Insurance record as of 5 April 2016, the DWP will calculate a ‘starting amount’ for the new State Pension for you.
Higher than both:
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The amount you will receive under the previous State Pension system until April 6, 2016, or
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If the new State Pension was in force at the start of your working life, the amount you would have received on your registration up to 6 April 2016
Both amounts take into account the periods during which you were contractually excluded from the Additional State Pension. Your ‘starting amount’ may be less, more or equal to the full new State Pension.
If your ‘starting amount’ is less than your full new State Pension
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Each ‘qualifying year’ you add to your National Insurance record after 5 April 2016 will add a certain amount towards your ‘starting amount’ (approximately £5.82 per week) until you reach the full amount of the new State Pension or reach State Pension age, whichever comes first £, this is £203.85 divided by 35).
If your ‘starting amount’ is‘ is more than the full amount of the new State Pension
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You will receive this higher amount when you reach State Pension age. If you have some Additional State Pension, it is possible for you to have a higher starting amount than your full new State Pension. The difference between your full new State Pension and your ‘starting amount’ is called your ‘protected payment’.
If your ‘starting amount’ is equal to the full new State Pension
How can I find out how much State Pension I can get?
You can get your State Pension estimate online from the Check Your State Pension service here. This provides personalised information including your State Pension age, an estimate of the State Pension amount you could receive at that point and whether you could increase that amount.
It also allows you to view your National Insurance contribution history. More details about deferring your State Pension can be found on the GOV.UK website here.