An estimated 700,000 people are due to retire over the 2023/24 financial year and join the 12.6million already in receipt of their State Pension payments from the Department for Work and Pensions (DWP). Some 2.9m people claiming the New State Pension are now receiving regular payments of up to £203.85 each week, and as the contributory benefit is usually paid every four weeks, this amounts to £815.40 per pay period.
Of the overall total, some 9.7million older people are receiving Basic State Pension payments of up to £156.20 each week, the equivalent of £624.80 per pay period.
It’s important to note that to be eligible for any State Pension payment you must have at least 10 years’ worth of National Insurance contributions and to receive the full amount, you will need between 35 and 44 years - the exact number may be different if you were ‘contracted out’.
The exact number of years depends entirely on the number of National Insurance 'full years' you have accumulated and whether or not you were ‘contracted out’ of the State Pension - you can check your State Pension forecast online at GOV.UK here.
Below are crucial must-knows for anyone reaching retirement age and choosing to claim their State Pension this year.
What is the State Pension?
The State Pension is an amount paid to you every four weeks by the UK Government once you reach the State Pension age. However, not everyone can get the full State Pension and it might not be enough to live on by itself, therefore it’s important to know what your State Pension might be, when you can claim it, and how it will stack up with your other retirement savings.
People receiving State Pension can choose to be paid either weekly or every four weeks - not to be confused with being paid monthly as the the DWP makes 13, four-weekly payments each year over the 52-week period, which can result in two payments being made in the same calendar month.
However, most people refer to the four-weekly payment cycle as ‘monthly’ and that is the intention here, just to make it easier to understand the increased amount.
Full New State Pension pay rates 2023/24
You are eligible for the New State Pension if you are:
- a man born on or after April 6, 1951
- a woman born on or after April 6, 1953
New State Pension payment rates
- Weekly rate: £203.85
- Four-weekly rate: £815.40
- Annual payments: £10,600.20
When can I claim my State Pension?
The State Pension age rose to 66 last year and at the moment it’s set to rise to 67 by 2028 and to 68 between 2044 and 2046, although this is due to be reviewed after the next general election expected to take place next year.
You can use the UK Government’s calculator to check when you'll reach State Pension age. If you don’t want to take your State Pension immediately, you can also choose to defer it. This means you could get larger payments when you do start claiming it, which might suit you depending on your circumstances.
How do I claim my State Pension?
You will not get your new State Pension automatically - you have to claim it. You should get a letter no later than two months before you reach State Pension age, outlining what you need to do.
If you have not received an invitation letter, but you are within three months of reaching your State Pension age, you can still make a claim, and the quickest way to do this is online here.
To complete your claim, you’ll need the following details:
- the date of your most recent marriage, civil partnership or divorce
- the dates of any time spent living or working abroad
- your bank or building society details
- the invitation code from the letter about getting your State Pension.
When will the State Pension be paid to me?
After you’ve made a claim you will get a letter about your payments, which will usually be paid every four weeks into an account of your choice, and you’re paid in arrears.
The day your pension is paid depends on your National Insurance number, although you might be paid earlier if your normal payment day falls on a bank holiday.
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
Pension Credit for those on a low income
Worryingly, an estimated 800,000 people in retirement are on less than the Basic State Pension and could be due a boost through Pension Credit. Single pensioners with an income below £240.90 each week and couples with a combined weekly income of under £351.45, could be due the top-up worth on average, £3,500 each year.
Pension Credit tops up a person's income to a minimum of £201.05 per week for single pensioners and £306.85 for couples or more if a person has a disability or caring responsibilities - find out more here.
To keep up to date with the latest State Pension news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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