How to claim your State Pension in 2016
Important changes were introduced in the State Pension system and took effect on April 2016. Here's who will be able to claim it, how to do it and how much you will get.The new UK State Pension may have been designed to make retirement simpler, but ploughing through the details can be tortuous. We’ve cut through the jargon to put together a quick guide to the things you need to know about claiming your pension under the new regulations.
The change came into force in April 2016 to replace the old earnings-related system, under which it was difficult to calculate in advance how much pension you would receive. The new scheme makes planning for retirement easier by paying the same weekly amount of £155.65 to everyone who qualifies.
Who is eligible?
Even though it’s a single rate pension, the actual amount paid will vary according to a number of factors. This is how it works.
- Anyone reaching the state pension age on or after 6 April 2016 is eligible. People reaching pension age before this date will continue to receive the old State Pension.
- If you have 35 years of National Insurance (NI) contributions you will get the full amount.
- Those with 10 to 34 years of NI contributions will get a proportion of the pension.
- You will not get the new pension if you have paid NI for less than ten years, unless you make voluntary top-up contributions.
How to claim the new pension
Your new State Pension will not simply turn up in the post. About four months before you reach pension age you should get a letter telling you how to go about claiming it, using one of the four methods below:
- Online: Visit the State Pension claims page which will take you through the process.
- Telephone: Contact the Pension Service on 0800 731 7898 for help with making your claim.
- Download: The State Pension claim form is available as a PDF download. The completed form should be sent to your local pension centre.
- From abroad: If you live overseas you can still claim a State Pension if you have paid enough NI contributions. Contact the International Pension Centre or download the international claim form.
If you keep working after reaching pension age you can still claim your pension, but you may ultimately receive more if you choose to defer it. No action needs to be taken for this to happen – your pension will automatically be deferred until you are ready to claim it. People in receipt of certain benefits, however, will not get the extra pension even if they defer.
How much will I get?
The amount of pension you eventually receive will depend on how long you have been making NI contributions. If you are over 55 and eligible for the new State Pension you can ask for a statement which will tell you how much pension you have accumulated so far. The page will also provide a forecast of what your pension will be and details on how you can increase this amount, allowing you to make plans well in advance for the day when retirement comes around.
