AROUND 500,000 people could miss out on payments worth £200 a week this year unless they take action.
Hundreds of thousands of Brits are set to turn 66 between now and December 31, based on estimates by the Office for National Statistics.
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The current state pension age is 66, when you can claim extra money to help with the cost of living.
But you have to proactively claim the cash and it is not paid to you automatically.
The full new state pension amount is worth £203.85 a week so it’s well worth claiming it.
If you are entitled to yours this year and don’t claim, don’t worry as this counts as deferring it and you will receive it later down the line.
It means payments will be higher too.
What is the state pension?
The state pension is a weekly payment from the Government to men and women aged over 66.
You can spend the money on what you want, but it’s treated as income so you may have to pay tax on it if, combined with other earnings, you breach the personal tax allowance, currently £12,570 a year.
There are two state pension rates – the basic state pension and new state pension.
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You will receive the basic state pension if you reached the state pension age before April 6, 2016.
The full amount you can get is £156.20 a week.
Meanwhile, you will get the new state pension if you reached the state pension age after April 6, 2016.
The full new state pension amount is £203.85 a week.
How do you qualify?
You will only receive the full new state pension amount if you have a minimum of 35 years of National Insurance Contributions (NICs), which you earn by working.
There may be gaps in your National Insurance if you were unemployed, lived abroad or took time off to care for children or relatives.
But you can apply for credits to top up these missing gaps and ensure you get the full state pension.
You need at least 10 years of qualifying NICs to get any state pension payments.
They don’t have to be 10 consecutive years.
You can use the Government’s state pension tool to find out how many years of contributions you have and how much your state pension is likely to be.
Should I claim my state pension at 66?
The current state pension age is 66, which is due to rise to 67 by 2028 and 68 by 2046.
Hundreds of thousands of people turning 66 this year can claim the extra money to help them with everyday costs.
You should receive a letter inviting you to claim with a specific code.
If you are within three months of your 66th birthday and haven’t received a letter, you can request an invitation code and apply online on the Government’s website.
Becky O’Conner, director of public affairs at PensionBee, said the state pension makes up the majority of people’s retirement income.
However, if you’re not desperate for the extra money when you hit 66, you can defer claiming it.
Your payments will be higher when you do come to claim too.
Becky said: “Your pension increases every week you defer, as long as you defer for at least nine weeks.
“It increases by the equivalent of 1% for every nine weeks you defer.
“This works out as just under 5.8% for every 52 weeks.”
For example, if you were to receive £203.85 a week from your state pension and deferred receiving it for 52 weeks, you would get an extra £11.82 a week when it came to claiming – £215.67.
It’s worth noting, deferring your state pension can impact your entitlement to benefits, as your income will be higher.
To claim, you will need your invitation code from the letter and other personal details, including:
- 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
You can also claim by phone by calling the Pension Service on 0800 731 7898.
Or, you can claim by post by sending any completed forms to: Pension Service 8, Post Handling Site B, Wolverhampton, WV98 1AF.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
