State Pension: It’s possible to increase payments as you’re receiving them – here’s how

State pension pays a varying amount which is dependent on a person’s national insurance record. So long as a person has at least 35 years of contributions, £9,110.4 per year could be received.

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This amount has recently been raised but it is still much lower than salaried income.

The income from a state pensions is unlikely to cover living costs alone, especially if the person involved has limited financial resources elsewhere.

Fortunately it is possible to increase state pension payments, even beyond the “full” amount of £175.20 per week.

Deferring state pension can increase the payments if it is done for a certain amount of time.

State pension will increase for every week of deferment, so long as it is done for a minimum of nine weeks.

It will increase by the equivalent of one percent for each one of these nine week periods.

This could equate to just under 5.8 percent for every 52 weeks of deferment.

Deferment is usually done before a state pension is claimed at all, meaning that retirees who are already receiving it may fear that it’s too late to increase their payments.

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However, there is no need to worry as it is possible to increase payments even if a state pension has already been claimed.

If a person is receiving state pension, the government will allow them to stop being paid for a while to earn extra state pension when they eventually start receiving it again.

If this option is taken, the retiree will need to stop being paid for at least nine weeks.

This could be difficult to do in the short term but it could pay dividends in the long term with increased income.

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There are limits to this though as a person can only stop being paid their state pension once, meaning that timing must be considered carefully.

On top of this, the person must normally be living in Great Britain, leaving pensioners abroad with limited options.

To defer payments while receiving them, people will need to call the government to organise it.

The state pensioner involved will need to identify an exact date where they want to stop claiming from.

This date cannot be backdated nor can it be more than four weeks in the future.

It should also be noted that claiming other benefits could affect the deferment outcomes.

If a person defers state pension while getting other benefits, or if another person had an increase in any of them on the person’s behalf they won’t build up any extra state pension in the days that they receive the benefit.

These other benefits includes a wide range of options.

The following are included:

  • Carer’s Allowance
  • Severe Disablement Allowance
  • Unemployability Supplement
  • Widow’s Pension
  • Widowed Mother’s Allowance
  • Incapacity Benefit
  • Pension Credit
  • Income Support
  • Employment and Support Allowance (income-related)
  • Jobseeker’s Allowance (income-based)
  • Universal Credit

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