Around 12.7 million people in the UK are currently receiving State Pension, a regular payment that provides financial help to eligible retirees across the nation.
Nevertheless, those who haven't reached the state pension age, which is currently set at 66, may be unaware that the Department for Work and Pensions (DWP) does not automatically provide payments. Qualifying applicants will have to submit their claims or could risk facing delays of up to £221.20 weekly or £884.80 every four weeks in their first receipt.
How to Claim and Defer State Pension
Submitting claims is a necessary procedure as some people opt for deferring their claim to carry on working and boost their pension savings, especially if they haven't accumulated the full 35 years of required National Insurance contributions.
The DWP 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.”, as reported by the Express.
Additional guidance includes that people can either claim their state pension or opt to defer 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.”
How to Claim State Pension?
The state pension can be claimed online, via the post, or through the phone. Online applicants will be required to provide the invitation code from the state pension letter.
If someone did not receive an invitation letter three months after attaining the state pension age, they can ask for an invitation code.
Those aiming to claim the benefit through the phone, they must do it four months after attaining the state pension age. The amount each person gets will depend on the number of years of National Insurance contribution that he/she have accumulated during their working life.
You can reach out to the Pension Service by calling on 0800 731 7898, texting 0800 731 7339, or Relay UK on 18001 then 0800 731 7898. To submit a claim via the post, you will need to phone the Pension Service first to demand a form.
Enhancing Your State Pension Through Deferral
The new state pension can be claimed even if you continue working. You can however defer you claim to enhance the amount you receive.
The state pension can increase every week if it is deferred as long as the claimants defer for a period of at least nine weeks.
The increase equals 1% for every nine weeks of deferral, amounting to slightly under 5.8% for every 52 weeks. The additional amount is then provided with the basic state pension payment.
The full basic state pension is provided to:
- Men born before April 6, 1951
- Women born before April 6, 1953.
The new state pension is provided to:
- Men born on or after April 6, 1951
- Women born on or after April 6, 1953.
To be eligible for any state pension rate, people must have no less than ten qualifying years on their National Insurance record.