State Pension payment warning to anyone set to reach official DWP retirement age this year

Those set to reach official State Pension age this year are being warned to take heed of Department for Work and Pensions advice. The state payment is available to anyone who hits the government’s eligible retirement age, which is currently 66 for both men and women, and have paid at least 10 years’ worth of National Insurance Contributions.

But, according to the DailyRecord, they will not automatically receive it – and have to claim it or they could miss out on up to £203.85 each week. Guidance from the DWP 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.”

The government department says that those who are eligible can either claim their State Pension or delay (defer) claiming it. “If you want to defer, you do not have to do anything,” the DWP explains. “Your pension will automatically be deferred until you claim it.”

This means that unless people respond to the letter to confirm they want to start claiming State Pension, they will not receive any payments as the DWP will interpret no response as a wish to defer. Those who opt to defer their State Pension will see the amount they receive, when they do choose to claim, increase. As long as it is deferred for at least nine weeks, the State Pension increases by the equivalent of one per cent for every nine weeks you defer, which works out as just under 5.8 per cent for every 52 weeks.

This extra amount is paid with the regular State Pension payment but it has been stressed that any extra payments from deferring could be taxed. People can find out more on GOV.UK.

What are the State Pension weekly rates

The State Pension payment rates for 2023/24 are as follows:

• Full New State Pension: £203.85
• Basic State Pension (Category A or B): £156.20

There are different rules around how much additional payment you could receive depending on when you were born and which State Pension payment you receive – either the old, Basic or full, New.

When does the first payment of State Pension arrive?

People’s first payment will be within five weeks of reaching State Pension age and they will get a full payment every four weeks after that. Some may get part of a payment before your first full payment and this is explained in the letter that is sent out by the DWP.

Those who are eligible can choose to receive their State Pension payments weekly, which will result in a shorter delay for the first payment.

When is the State Pension payment day?

The day your State Pension is paid 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

What is the DWP ‘starting amount’ for the new State Pension?

If you have qualifying years on your National Insurance record as at April 5, 2016, DWP works out a ‘starting amount’ for you for the new State Pension.

It is the higher of either:

Both amounts reflect any periods when you were contracted out of the Additional State Pension. Your ‘starting amount’ could be less than, more than or equal to the full new State Pension.

If your ‘starting amount’ is less than the full amount of the new State Pension

• Each ‘qualifying year’ you add to your National Insurance record after April 5, 2016 will add a certain amount (about £5.82 a week, this is £203.85 divided by 35) to your ‘starting amount’, until you reach the full amount of the new State Pension or you reach State Pension age, whichever happens first.

If your ‘starting amount’ is more than the full amount of the new State Pension

• You will get this higher amount when you reach State Pension age. It is possible to have a starting amount higher than the full new State Pension if you have some Additional State Pension. The difference between the 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

• You will get the full new State Pension when you reach State Pension age.

How can you get a State Pension forecast?

People can find out how much State Pension they will receive by getting an online forecast from the Check your State Pension service. It provides personalised information, including your State Pension age, an estimate of how much State Pension you may get at that point and if you can increase this amount. It also allows you to view your National Insurance contribution history.

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