State Pension is a contributory benefit delivered by the Department for Work and Pensions (DWP) which currently provides additional financial support for over 12.4 million older people across the UK, including 981,399 retirees living in Scotland.
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 DWP makes 13, four-weekly payments each year over a 52-week period which can result in two payments being made in the same calendar month.
However, there's a lot more to State Pension than just two types of payments and there are a few ways to increase the amount you are paid, mostly by increasing your National Insurance contributions.
Below are the new rates of pay for those on the Old Basic and Full New State Pension, plus four things that may be able to boost those payments, especially if you are due to retire this year.
New State Pension
You are able to claim 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
The earliest you can get the new State Pension is when you reach State Pension age - find yours here.
If you reached State Pension age before April 6, 2016, you will get the State Pension under the old rules instead.
New State Pension rates
- New State Pension full rate: £185.15
- Transitional rate below full rate: 3.0902%
- Protected payment: 3.10%
- Increments - own (based on deferred new State Pension): 3.10%
- Increments - inherited (based on deferred old State Pension): 3.10%
Old Basic State Pension
You can claim the basic State Pension if you are:
- a man born before April 6, 1951
- a woman born before April 6, 1953
To get the basic State Pension you must have paid or been credited with National Insurance contributions.
Old Basic State Pension rates
- Category A or B basic pension: £141.85
- Category B (lower) basic pension - spouse or civil partner’s insurance: £85.00
- Category C or D - non-contributory: £85.00
Additional pension
- Additional pension: 3.10%
- Maximum additional pension (own and inherited): £185.90
Increments
- Basic pension: 3.10%
- Additional pension: 3.10%
- Graduated Retirement Benefit: 3.10%
- Inheritable lump sum: 3.10%
Contracted-out deduction
- Contracted-out deduction from AP in respect of pre-April 1988 contracted-out earnings: Nil
- Contracted-out deduction from AP in respect of contracted-out earnings from April 1988 to 1997: 3.00%
Graduated Retirement Benefit
- Graduated Retirement Benefit (unit): £0.1492
Increase of long term incapacity for age
- Increase of long term incapacity for age: 3.10%
Age 80 addition
- Addition at age 80: £0.25
Increase of long term incapacity for age
- Higher rate: £24.15
- Lower rate: £12.10
Invalidity Allowance (transitional) for State Pension recipients
- Higher rate: £24.15
- Middle rate: £15.50
- Lower rate: £7.75
Four ways to boost monthly income
Most of these involve setting aside some time to check if you are eligible or have missed out on National Insurance credits, so be patient and don't dismiss them - especially the benefits, as they could provide regular, additional payments and open the door to other discounts and reductions on Council Tax, housing costs and TV licence fee exemption.
Claim Child Benefit
Women in particular miss out on valuable State Pension credits when they are at home looking after children. However, if they claim Child Benefit, they will receive National Insurance (NI) credits that count towards their State Pension. Many women have missed out on this in the past because their husband claimed the Child Benefit rather than themselves.
Others missed out when they opted out of Child Benefit after the introduction of the High-Income Child Benefit Tax Charge. If you claim Child Benefit in your name, then you will get the NI credit towards your State Pension.
Check to make sure you haven't missed out on these credits, contact the Child Benefit Office here.
Buy National Insurance credits
If you can spare the cash you can plug gaps in your National Insurance record by buying voluntary class 3 NI contributions. Buying a full extra year will cost £800, and you can typically backdate claims for six years.
Claim Pension Credit
This is something the DWP is pushing over a million older people to claim as they are missing out on crucial financial support and additional benefits - read more about this here.
If you are over State Pension age and on a low income then you should check whether you are eligible for Pension Credit as it can top up your weekly income to £177.10 if you’re single and £270.30 in joint income if you have a partner.
But even if you don't qualify for financial support through it, you could still be eligible for other benefits such as help with Council Tax payments, help with housing costs and a free TV licence for those aged over 75.
Despite having the ability to really boost the income of the poorest pensioners, take-up of this benefit remains low with only around 60% of those entitled claiming it.
There's also a quick to use online Pension Credit calculator - try it out on GOV.UK here.
Attendance Allowance
Attendance Allowance helps people who have reached State Pension age with extra costs if they have a physical or learning disability, severe illness, sensory impairment or mental health condition that makes it hard for them to look after themselves - but it does not cover any mobility needs.
You should consider making a claim if you need help or supervision throughout the day or at times during the night - even if you don’t currently get that help.
This might include:
- Help with your personal care - getting dressed, eating or drinking, getting in and out of bed, bathing or showering and going to the toilet
- Help to stay safe
You should also apply if you have difficulties with personal tasks, especially if they take you a long time, you experience pain or need physical help, like a chair to lean on.
Successful claimants could receive either £61.85 or £92.40 a week, depending on the level of care needed because of their condition, which is paid every four weeks and works out at £247.40 and £369.60 each payment period, respectively.
We have a whole section dedicated to helping people understand Attendance Allowance along with claiming guides for certain conditions and myths which stop people claiming support - find out more here.
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