I am about to turn 66 and I plan to retire just before my birthday. Will my state pension start being paid immediately after that date?
Will I receive it automatically and if so how do you know where to pay for it?
Is there anything I should do? BB by email
Be proactive: While the Government should remind you, retirees will still need to claim their state pension themselves.
This is Money’s Harvey Dorset responds: When you reach state pension age, which is currently 66, you can expect your payments to start arriving in your bank account as soon as you reach your birthday.
However, it is up to each individual to start claiming their state pension from the Department for Work and Pensions when they turn 66.
This will entitle you to £221.20 per week if you have made 35 years of National Insurance payments.
However, some people receive less if they have 35 years’ or more of pension history but cancelled contributions to the Second State Pension (also called SERPS) for periods before that system was abolished.
Before you turn 66, you should receive a letter from the Government urging you to claim your pension.
But this doesn’t always happen in practice, for example if the DWP doesn’t have a current address for you, so you may need to be proactive.
> Make a state pension claim on gov.uk here
If you do not claim your State Pension, it will be automatically deferred, but this has its own benefits.
The longer you delay claiming your state pension, the higher your weekly payments will be.
This could be beneficial for those who don’t need to claim straight away or could end up paying more tax unnecessarily if they are still working and receiving a salary. Here we explain the rules and how to weigh up the pros and cons of deferring your state pension.
This is Money spoke to two money experts to find out what steps you need to take to ensure you receive your state pension when it’s due.
It depends on the number: Becky O’Connor says the date she will receive her state pension payments depends on her National Insurance number
Becky O’Connor, Public Affairs Director at PensionBee, responds: When thinking about the State Pension, the most important thing to remember is that you won’t receive it automatically – you’ll have to claim it.
The current full state pension is £221.20 per week, or £11,502 per year (2024/25).
To be able to access the full amount, you need to have at least 35 years of National Insurance credits that allow you to qualify. You can Check your state pension forecast by logging into your Government Gateway account on gov.uk.
As you approach state pension age, which is currently 66 (rising to 67 in 2028), you should receive a letter from the Government no later than two months before your birthday telling you how to apply and which bank account you want it paid into.
If you don’t receive a letter, you can still Make a claim online at gov.uk.
Once you apply, your first payment will usually arrive within five weeks of you reaching state pension age and covers the period from your qualifying date. From then on, you’ll usually receive payment every four weeks.
The payment date will depend on the last two digits of your social security number.
For example, if the last two digits of your NI number are 00-19, you will receive your payment on Monday, if they are 20-39, you will receive your payment on Tuesday, and so on.
It is important to remember that the state pension alone is not enough for most people to fund their retirement.
In fact, according to the Pensions and Lifetime Savings Association’s Retirement Living Standards, a single person needs £43,100 a year for a “comfortable” retirement, while a couple would need £59,000.
You can get a more detailed and personalised idea of how much you might need in retirement by using This is Money’s pension calculator.
If you don’t need to access your state pension straight away, you may want to consider delaying it.
Your state pension will increase by 1 per cent for every nine weeks you delay it, which equates to just under 5.8 per cent for every full year you postpone your claim.
For example, if your initial weekly State Pension was £221.20, it would increase to £234.02 per week if you delayed it for a year.
Peter Hopson, pensions technical specialist at the Money and Pensions Service, replies: Once you turn 66 and have decided that you want to start receiving your state pension, you will need to actively claim it. It is not paid automatically.
Double check: Peter Hopson says you should make sure you’re getting the highest pension payment possible
Four months before you reach state pension age, you should receive a letter telling you how much state pension you will receive.
If you have not received a letter, but are within three months of reaching eligible state pension age, you can request one at gov.uk, at ‘‘Request an invitation code’.
Once you receive your letter, you will need to apply for your pension online, by mail, or by phone.
In doing so, you will need to provide several details, including the details of your bank or credit society to which the money will be paid.
You don’t have to start drawing your state pension as soon as you reach the age to do so. Instead, you can defer it and claim it later, which will increase the pension you receive.
You can also claim your state pension even if you continue working.
The amount of state pension you receive will vary from person to person, depending on Your National Insurance record – how much National Insurance you have paid throughout your life.
It is advisable to check the level of state pension you are entitled to to ensure you will receive the maximum amount possible. If you are not expected to receive the maximum amount, you may be able to increase it by paying voluntary contributions into National Insurance.
To apply for your State Pension online, you will need the invitation code which will be included in the letter you should have received. If you do not have access to the internet, you can apply by phone by calling the Pensions Service on 0800 731 7898.
When applying, be sure to have the following information on hand:
· The dates of any period of residence or work abroad;
· Your bank or credit institution details;
· If applicable, the date of your most recent marriage, civil union or divorce.
Once you have applied for your state pension, you must Tell the Pension Service If your circumstances change. Changes include a change of address, moving to another country, changing bank details, remarriage, civil partnership or divorce.
Once you have applied for your State Pension, your first payment should arrive within five weeks of reaching State Pension age.
After this, you should receive a full payment every four weeks.
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