More than 12.4 million people throughout the UK currently receive crucial financial support through the State Pension, including over 981,000 people living in Scotland.
The State Pension can be claimed by those who have reached the UK Government’s eligible retirement age, which currently stands at 66 for both men and women, and who have paid sufficient National Insurance contributions.
However, as reported by the Daily Record, many people who are approaching this age in 2022 may be unaware that the State Pension is not paid automatically by the Department for Work and Pensions (DWP).
READ MORE — Spain could introduce massive travel change by the end of the week
Instead, it must be manually claimed, and those who fail to do so may miss out on as much as £185.15 per week.
The reason the payment is not transferred automatically once a person reaches the official retirement age is because many people opt to put off claiming it in order to continue working and add more to their pension pot.
As stated in DWP guidance: “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 continues: “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, unless you reply to the letter stating that you wish to begin claiming payments, you will not receive the State Pension.
Putting off claiming could up the amount of money you eventually get each work, so long as you defer for at least nine weeks.
The amount you receive rises by the equivalent of 1% for every nine weeks you defer, which works out as almost 5.8% for every 52 weeks.
The extra amount is paid with your regular State Pension payment, however, it’s important to be aware that any extra payments you get from deferring could be taxed.
State Pension weekly payment rates
State Pension payment rates increased by 3.1% on April 11, the new rates are:
- Full New State Pension: £185.15 (from £179.60)
- Basic Old State Pension (Category A or B): £141.85 (from £137.60)
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.
More information about deferring your State Pension can be found on the GOV.UK website here.
