Reaching retirement age is a huge milestone, and for many in the UK, the State Pension is a crucial source of financial support. But did you know that your State Pension isn’t paid automatically?
If you’re turning 66 this year, you need to actively claim it—otherwise, you could miss out on payments of up to £221.20 per week.
So, who qualifies, how do you claim, and should you consider deferring for a bigger pension later? Let’s break it down.
Eligibility
To qualify for the State Pension in 2024, you must meet the following criteria:
- Be at least 66 years old.
- Have at least 10 years of National Insurance Contributions (NICs).
- Have 35 years of NICs to receive the full State Pension.
The government sends a letter two months before you reach State Pension age, guiding you on how to claim. If you don’t respond, your pension won’t be paid.
What Happens If You Don’t Claim?
If you don’t submit a claim, the DWP assumes you’ve chosen to defer your pension. This means:
- You won’t receive any State Pension payments until you claim.
- Your pension will increase slightly each year, but you won’t get backdated payments.
So, is deferring a smart move? Let’s explore.
Deferring
Some people delay their State Pension to increase their future payments. But is it worth it?
How Does It Work?
- If you don’t claim, your pension is automatically deferred.
- The longer you defer, the more your payments will increase.
- However, extra pension payments could be taxable if your income exceeds the tax threshold.
How Much More Could You Get?
The increase depends on when you reached State Pension age:
| Pension Age | Increase Per 5 Weeks | Annual Increase |
|---|---|---|
| Before 6 April 2016 | 1% | 10.4% |
| After 6 April 2016 | 1% per 9 weeks | 5.8% |
For example:
- If you reached pension age before April 6, 2016, and your State Pension is £169.50 per week, deferring for one year would increase it by £17.62 per week.
- If you reached pension age on or after April 6, 2016, and your pension is £221.20 per week, a one-year deferral would add £12.82 extra per week.
Should You Defer?
Deferring isn’t for everyone. Consider the following before deciding:
- If you need the money now, claiming immediately is the best choice.
- If you’re in good health and expect to live longer, deferring could increase your overall pension income.
- If you have other income sources, a higher pension later might be more beneficial.
- Tax implications: Extra pension income could push you into a higher tax bracket.
Checking Your Pension Status
Before making any decisions, use the Check Your State Pension service online to:
- Find out your State Pension age.
- Estimate your weekly payments.
- Check your National Insurance contribution history.
When Will You Get Paid?
Once you claim your State Pension:
- Your first payment arrives within five weeks of reaching pension age.
- After that, payments are made every four weeks.
If you don’t claim, you won’t get any payments until you do—so don’t leave it too late!
The State Pension is an essential financial safety net, but it won’t land in your account automatically. If you’re turning 66 this year, make sure to submit your claim to avoid losing out on up to £221.20 per week.
Deferring is an option, but it depends on your financial situation and health. Use the government’s online tools to check your entitlement and plan your retirement wisely.
For more information or to claim, visit gov.uk/state-pension.
