Once you retire, the UK State Pension is likely to be a key part of your retirement income. But does it kick in automatically, or do you actually have to apply for it? Let’s find out.
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Who is eligible for the UK State Pension?
In order to get the State Pension, you need to pay National Insurance contributions and build up a minimum number of years’ worth. This is usually 10 years, though the years don’t have to be in a row. The higher the number of qualifying years you build up, the higher your State Pension will be.
The State Pension is actually split into two systems depending on how old you are and when you retire.
Eligible men born on or after 6 April 1951 and eligible women born on or after 6 April 1953 get the new State Pension.
All other eligible men and women who reached the State Pension age before 6 April 2016 get the old State Pension that’s called the basic State Pension.
Do I have to apply for the UK State Pension?
In a nutshell, yes. It does not come in automatically, so you have to claim it to get it. If you are eligible, you should receive an invitation to claim your pension about four months before you reach the State Pension age.
If you don’t receive the letter three months before you reach the State Pension age, you should contact the Pension Service who will be able to help you.
Keep in mind that you can only claim your State Pension once you’ve reached the State Pension age. You can confirm your State Pension age on the gov.uk website.
How do I claim it?
There are several ways to claim your UK State Pension:
- Online on the gov.uk website.
- Over the phone by calling 0808 731 7898 if you’re in England, Scotland and Wales, and 0808 100 2658 if you’re in Northern Ireland.
- By downloading the State Pension claim form and then sending it to your local Pension Centre.
You can also claim your State Pension from abroad, including the Channel Islands, but the process is different. To find out more, take a look at our article on collecting the UK State Pension from abroad.
Can I defer my pension?
Yes, you can. You don’t have to take your State Pension the moment you hit the State Pension age.
You can put it off and allow it to continue growing, which will increase the amount you’ll get once you choose to claim it. If you want to defer, you don’t have to do anything. Your pension will automatically be deferred until you claim it.
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Can I claim my pension and then continue working?
Yes. The amount of State Pension you’re entitled to won’t be affected if you continue working.
But continuing to work and getting an income could affect your eligibility as well as how much you can get for other benefits like Pension Credit and Housing Benefit.
What else do I need to know?
Thanks to the triple lock system, the UK State Pension is set to rise by 2.5% from April 2021.
That means that the full rate of the new State Pension will rise from £175.20 to £179.60 per week. As for the basic State Pension, the full rate will rise from £134.25 to £137.65.
For more pension-related info and advice, check out our comprehensive guide on how pensions work.
