According to the latest statistics from the Department for Work and Pensions (DWP), State Pension currently provides regular financial help for 12.7 million seniors across the country, including more than one million Scottish retirees.
This payment is handed to those who have attained the UK Government’s eligible retirement age, which is currently fixed at 66 for both men and women, and have paid a minimum of 10 years of National Insurance Contributions.
Nevertheless, people approaching the official retirement age this year may not know that the State Pension is considered as a contributory benefit and the DWP does not pay it automatically. The payment must be claimed, or retirees risk facing a delay when receiving their initial payment of up to £221.20 per week, or £884.80 every four-week pay cycle.
State Pension Payment Rules: What You Need to Know
State Pension payments are not provided automatically when someone attains State Pension age since some people opt to delay asserting a claim in order to be able to work more and allocate additional funds to strengthen their pension savings, especially if they have not fulfilled the entire 35-year quota of National Insurance Contributions, or were 'contracted out'.
DWP guidance explains: “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.”
It later clarifies you can either claim your State Pension or defer claiming it. It says: “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 if you fail to respond to the letter confirming you want to start claiming State Pension, you will not get any payments as the DWP will consider no response as a wish to defer.
Deferring your State Pension could raise the payments you receive every week when you opt for claiming it, as long as your deferral period does not exceed nine weeks. Your State Pension increases by nearly 1% for every nine weeks you defer, this amounts to slightly less than a 5.8% increase for every 52 weeks.
You will get the extra amount along with your regular State Pension payment, however, it’s important to note that any extra payments you receive from deferring could be subject to a tax — find out more on GOV.UK here.
It's also crucial to be aware that deferred State Pensions increase each year along with the September Consumer Price Index (CPI) inflation rate and not the highest measure of the Triple Lock policy.
New State Pension Payment Rates 2024/25
- Full payment rate: £221.20.
- Every four-week pay cycle: £884.80.
Basic State Pension Payment Rates 2024/25
- Category A or B Basic State Pension (full payment rate): £169.50.
- Every four-week pay period: £678.00.
Your Initial Payment
Your first payment comes within five weeks of attaining State Pension age, and a full payment will be provided every four weeks after that. You might get part of a payment prior to your initial full payment.
You can also opt for receiving your State Pension payments weekly or biweekly, which will lead to a shorter delay for the first payment.
Your State Pension Payday
The day you receive your state pension depends on your National Insurance number.
Last two digits of your National Insurance number:
- 00 to 19: paid on a Monday.
- 20 to 39: paid on a Tuesday.
- 40 to 59: paid on a Wednesday.
- 60 to 79: paid on a Thursday.
- 80 to 99: paid on a Friday.