State Pension payments change as age increases from 66 to 67

The UK State Pension is worth up to £241.30 per week but must be claimed when you reach State Pension age — or you could face a payment delay

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The State Pension age began a gradual increase from 66 to 67 in April, with the transition scheduled to be finalised for all men and women throughout the UK by 2028. The proposed adjustment to the official retirement age has been in law since 2014, with a subsequent rise from 67 to 68 planned for implementation by the mid-2040s.

The most recent figures from the Department for Work and Pensions (DWP) reveal the State Pension currently delivers regular financial assistance to 13.2 million elderly people nationwide, including more than one million pensioners residing in Scotland. This benefit is accessible to those who have attained the UK Government’s qualifying retirement age and have contributed at least 10 years’ worth of National Insurance Contributions.

Individuals nearing the official retirement age this year may be unaware that the State Pension is classified as a contributory benefit and is not disbursed automatically by the DWP. The benefit must be applied for, otherwise pensioners risk experiencing a delay in receiving their initial payment of up to £241.30 per week, or £965.20 for each four-week payment cycle.

The funds are not distributed automatically when someone reaches State Pension age, as certain individuals opt to postpone submitting a claim in order to continue working and accumulate more towards their pension fund, particularly if they have not contributed the complete requirement of 35 years’ worth of National Insurance Contributions, or were ‘contracted out’.

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.”

It then clarifies you can either claim your State Pension or delay (defer) claiming it. It states: “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 your wish to begin receiving your State Pension, no payments will be made, as the DWP will treat any lack of response as an intention to defer, reports the Daily Record.

Postponing your State Pension could boost your weekly payments once you do decide to claim, provided you defer for a minimum of nine weeks. Your State Pension grows by the equivalent of 1% for every nine weeks you defer, amounting to just under 5.8 per cent for every 52 weeks.

The additional sum is paid alongside your regular State Pension payment. However, it is worth noting that any extra payments resulting from deferral may be subject to taxation — further details are available on GOV.UK.

It is also worth bearing in mind that deferred State Pensions rise annually in line with the September Consumer Price Index (CPI) inflation rate, rather than the highest measure of the Triple Lock policy.

Your initial payment will arrive within five weeks of reaching State Pension age, with full payments following every four weeks thereafter. You may receive a partial payment before your first complete one. The letter will outline what to expect.

You can also opt to receive your State Pension payments weekly or fortnightly, which will reduce the waiting time for the first payment. The day your State Pension is paid depends on your National Insurance number.