The State Pension benefit currently provides essential support for 12.5 million older people across the UK - including more than one million people living in Scotland.
This regular payment for pensioners is available to those who have reached the UK Government's eligible retirement age, reports the Daily Record. This official age is now 66 for both men and women, who have also paid at least ten years worth of National Insurance contributions.
However, many people approaching the retirement age in 2023 may not be aware that this benefit is not paid automatically by the Department for Work and Pensions (DWP). This contributory payment needs to be claimed, or people could miss out on payments of £185.15 per week.
READ MORE - The full list of Edinburgh school closure dates as teachers begin strike action
The reason it is not paid automatically is because when people reach State Pension age, some people choose to defer making a claim in order to keep working and generate more towards their pension pot. This is done especially if the person has not paid the full quota of 35 years' worth of National Insurance Contributions.
DWP guidance 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 DWP then states that you can either claim State Pension or defer it. They state: "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 respond to the letter confirming that you want to begin claiming State Pension, you will not receive any payments as the DWP will interpret no response as a wish to defer.
Deferring your State Pension could increase the payments you get each week when you decide to claim it, as long as you defer for at least nine weeks.
State Pension increases by the equivalent of one per cent for every nine weeks a person defers - this works out at just under 5.8 per cent for every year.
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.
Here are 2023's State Pension weekly payment rates:
State Pension weekly payment rates
State Pension payment rates for this year are:
- Full New State Pension: £185.15 (going up to £203.85 in April)
- Basic Old State Pension (Category A or B): £141.85 (going up to £156.20 in April)
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.
If you have qualifying years on your National Insurance record as at April 5, 2016, the DWP works out a ‘starting amount’ for you for the new State Pension.
It is the higher of either:
- the amount you would have got under the previous State Pension system up to April 6, 2016, or
- the amount you would get on your record to April 6, 2016 if the new State Pension had been in place at the start of your working life
Both of these amounts reflect any periods when you were contracted out of the Additional State Pension. The 'starting amount' could be less than, equal to, or more than the full new State Pension.
If the 'starting amount' is less than the full amount of the new State Pension, then each 'qualifying year' you add to your National Insurance record after April 5, 2016 will add a certain amount (about £5.29 a week, this is £185.15 divided by 35) to your ‘starting amount’.
This will continue 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, then 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 'starting amounts' is called the 'protected payment' for claimants.
If your ‘starting amount’ is equal to the full new State Pension, then you will get the full new State Pension when you reach the official UK Government retirement age.
How can I find out how much State Pension I could get?
You can check your State Pension forecast from the 'Check your State Pension' service. This service provides personalised information, including:
State Pension age
an estimate of how much State Pension you may get at that point
if you can increase this amount
It also allows you to view your National Insurance contribution history. More information about deferring your State Pension can be found on the GOV.UK website.
READ NEXT:
Amazon Prime's The Rig divides viewers as people make same complaint
Lewis Capaldi secures fourth UK No.1 with song 'Pointless' ahead of Edinburgh gig
The 'money saving' DIY hack that could slash your bills by over £800 per year
Edinburgh issued yellow weather warning for ice as drivers warned to take caution
B&M shoppers hail £1 'money saving' accessory that slashes annual energy bills by £60
