People due to retire this year could boost New State Pension payments by over £600
16.01.2024 - 15:51
/ dailyrecord.co.uk
Retirement may be a while off for some people or just around the corner for others, but pensions expert Helen Morrissey, is urging everyone to give some serious thought to deferring making a claim for State Pension, as it could boost their annual later-life income by more than £600.
Deferring your State Pension, means not claiming it when you reach the official age of retirement and could boost payments of the New State Pension when you do decide to claim it. However, it’s important to note that any extra payments you get from deferring could be taxed.
The State Pension age is now 66 for men and women, but is set to rise to 67 between 2026 and 2028 under current UK Government plans. The full Basic State Pension is now £156.20 for a single person and £249.80 per week for a couple while the full New State Pension for people retiring after 2016 is £203.85 per week.
There are now nearly 12.7 million people claiming their State Pension across Great Britain, including more than one million in Scotland. The vast majority of people will rely on this contributory benefit to boost retirement income along with private or workplace pensions.
You can increase the amount of State Pension you will receive by filling any gaps in your National Insurance record. You need at least 10 years for any State Pension payment and around 35 years for the full amount, although this may be more for people who were ‘contracted out’ - find out more on GOV.UK here.
Ms Morrissey said: “When the then Prince Charles celebrated his 65th birthday he became a ‘pension-heir’ able to claim his State Pension. Few of us are wealthy enough to be able to afford to donate our State Pension to charity but if you are like the King and still working and don’t need
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