State pension warning issued to Britons retiring this year – you will need to take action
State Pension: Expert outlines criteria to qualify
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Millions of people will reach state pension age this year, which is currently set at 66. But while many look forward to retirement, they will need to act if they want to receive their sum.
This is because the state pension is not issued to Britons automatically, which some people are unaware of.
The Department for Work and Pensions (DWP) has warned: “You will not get your new state pension automatically – you have to claim it.”
Consequently, those who are retiring this year will need to act if they want to receive their pension cash.
Individuals should receive a letter no later than two months before reaching state pension age.
This correspondence should clearly lay out the steps a person will have to take when it comes to their pension.
Those who have not received an invitation letter may still be able to make a claim.
However, they must be within four months of reaching their state pension age to do so.
The quickest way for a person to claim their state pension is to apply online via the Government’s website.
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People will also be able to phone the Pension Service to get a state pension claim form posted out to them.
The rules slightly differ for those living in Northern Ireland, and these individuals will need to visit the nidirect website for further guidance.
If a person does not claim their state pension, they will not miss out on it.
This is a process known as deferral, and it could end up working in a person’s favour.
For the new state pension, the sum will increase every week a person defers, as long as this is done for at least nine weeks.
The state pension increases by the equivalent of one percent for every nine weeks deferred.
This works out as just under 5.8 percent for every 52 weeks.
Those getting the full new state pension of £185.15 per week, and deferring for 52 weeks will get an extra £10.70 per week.
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This example, however, assumes no annual increase in the state pension.
As a result, individuals could end up getting even more from the state pension when they do come to claim it.
To defer, Britons will not have to do anything, as the pension will be automatically delayed until a claim is made.
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