Categories
World News

State pension UK: You can boost payments even after claiming – this is how

We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.

State pension payments are dependent on a person’s National Insurance record, with at least 10 years needed to receive anything. A minimum of 35 years will be needed to receive the full amount of £175.20 per week.

Despite being referred to as the full state pension, it is possible to receive more than this in retirement.

If a person defers their state pension claim by at least nine weeks, they could boost their eventual payments.

The state pension will increase by the equivalent of one percent for every nine weeks of deferment.

This equates to just under 5.8 percent for every 52 weeks.

If this is done, the extra amount will be paid with the regular state pension payments.

Most people likely put these plans in place before they claim their pension but similar set ups can be utilised while receiving the income.

If a person is already getting their state pension, they can halt the payments for a certain amount of time.

This will allow them to earn extra state pension when they start being paid again.

DON’T MISS:
State pension warning: Starting amounts may be lowered [WARNING]
Martin Lewis breaks down ‘important’ pension tax rules [EXPERT]
Martin Lewis’s ‘instincts’ urge savers to put money into this pension [INSIGHT]

The normal length rules apply for this situation, meaning the claimant will have to stop being paid for at least nine weeks to get the benefit.

To do this, state pension claimants will need to call the government on 0800 99 1234 to tell them to stop paying it.

The claimant will need to inform the government of the date they want to stop claiming from.

This cannot be a date in the past or more than four weeks in the future.

How is Boris Johnson handling the coronavirus crisis? Vote in our poll 

A lot of consideration should be given to this decision before action is taken as a person can only halt their state pension payments once.

Additionally, a person doing this must normally be living in Britain.

Once the decision has been made however, the person involved can put off claiming their state pension for as long as they like.

Any extra state pension a person gets from deferral should increase every year with normal triple lock rises.

Under triple lock rules, state pensions should increase every year by whichever is the highest of the following:

  • earnings – the average percentage growth in wages (in Great Britain)
  • prices – the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI)
  • 2.5 percent

Source: Read Full Article