State Pension is offered by the Department for Work and Pensions (DWP) to Britons who have reached an eligible age – known as the State Pension age. Individuals who have worked for a particular number of years, and who have put forward valuable National Insurance contributions during that time can receive the sum from the government. State Pension is provided to eligible pensioners once every four weeks, and is paid into a bank account of a person’s choice.
The government has split the State Pension into two separate schemes, which are available for different people dependent on their age.
The basic, or ‘old’ State Pension can be claimed by men born before April 6, 1951 and women born before April 6, 1953.
Under this State Pension, the most a pensioner can receive is £134.25 per week.
It does, however, increase through a system known as the Triple Lock.
The Triple Lock Mechanism sees the State Pension rise each year by whichever is the highest: average earnings, the rate of inflation, or 2.5 percent.
In the current tax year, which commenced in April 2020, the State Pension sum rose by 3.9 percent.
The new State Pension, however, is available to a slightly younger group.
This sum can be claimed by men born on or after April 6, 1951, and women born on or after April 6, 1953.
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Under the new scheme, pensioners will be required to have at least 10 qualifying years on their National Insurance record to get any State Pension.
For those on the old system, a total of 30 qualifying years are needed to receive the full amount of State Pension.
State Pension is usually claimed by those who are leaving the workforce, however, some may choose to keep working.
The government website states: “You do not have to stop working when you reach State Pension age, but you’ll no longer have to pay National Insurance.”
The new State Pension is usually paid every four weeks into an account of the pensioner’s choice, and the person is paid in arrears – for the last four weeks, not the coming four weeks.
The basic State Pension is traditionally paid based on the last two digits of a National Insurance number.
On Monday, those with numbers between 00 to 19 will receive their payment, with 20 to 39 paid on Tuesday, and 40 to 59 on Wednesday.
Those with the numbers 60 to 79 will traditionally have their pension paid on Thursday, with 80 to 99 paid on Friday.
It is worth noting, however, that people do not receive the State Pension automatically from the government.
Instead, when they are very close to State Pension age, they are required to reach out to the DWP to receive it.
The basic State Pension can be claimed in three main ways: over the phone, through the relevant claim for, or by claiming from abroad.
The claim form can be found on the government’s website, as well as the contact details for the helpline.
Those on the new State Pension system will find it easiest to receive their sum through the government’s website portal.
Future pensioners will need:
- the date of their most recent marriage, civil partnership or divorce
- the dates of any time spent living or working abroad
- their personal or joint bank account or building society details
The government will, however, send out a letter to eligible future pensioners as a courtesy, no later than two months before they reach State Pension age as a reminder to make a claim.
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