Hundreds of thousands to get £920 state pension boost in days
HUNDREDS of thousands of pensioners are set to receive £921.24 payments in days following increases to the state pension.
Many will feel the full impact of the pension boost on their wallets for the first time next week.
On April 6, the state pension rose by just over £470 per year from £11,502 to £11,976 for those on the full new state pension.
That equates to a weekly rise from £221.20 a week to £230.31 or from £884.80 to £921.24 a month.
Pension payments are made in arrears, so those who are paid monthly will see the full increase for the first time from Monday (May 12).
The day on which you receive your payment depends on how you chose to be paid and the last two digits of your National Insurance number.
So, while many of those who are paid monthly will see their first full payment at the new rate next week others could have to wait for up to a further three weeks.
A record 13million people receive the state pension, following a jump of 203,000 claimants in the year to August 2024.
All will see a bumper rise to their income this year, thanks to the triple lock mechanism.
The triple lock ensures the State Pension rises in line with the highest figure of average wage increases between May and July, September’s inflation figure, or 2.5%.
This year, payments have risen by 4.1% in line with wage growth in the three months to July last year.
Pensioners who have requested to receive their payments weekly or fortnightly will already have seen the increase in their payments.
But however regularly you receive payments the state pension is paid in arrears and not everyone gets it on the same day.
You can check your National Insurance number to find out what day of the week you are paid state pension.
The last two digits will indicate the day:
- 00 to 19: Monday
- 20 to 39: Tuesday
- 40 to 59: Wednesday
- 60 to 79: Thursday
- 80 to 99: Friday
The state pension boost will be hugely welcome for many pensioners struggling with the cost of living crisis.
Especially as it comes after the Winter Fuel Payment was slashed for millions of pensioners after it was tied to Pension Credit last year.
This means many pensioners lost out on up to £300, which will eat into their state pension uplift.
Last month it was revealed hundreds of thousands of Brits may have been underpaid by the Department for Work and Pensions.
But, luckily, pensioners can easily check their eligibility for compensation.
How do I get the full state pension figure?
The amount of State Pension you receive depends on your National Insurance (NI) record throughout your adult life.
If you have made at least 35 years of qualifying NI contributions or have received equivalent credits for raising children or providing care, you should get the maximum new State Pension.
If you don’t have 35 years, you may be able to top up your record by paying in voluntary NI contributions.
If you are a man who was born before April 6, 1951 or a woman born before April 6, 1953 then you will get the old state pension.
This has a slightly different system with different payment amounts.
You need 30 years of NI contributions or credits to qualify for the full basic amount, but may get more if you get additional State Pension, or SERPS.
To get any State Pension at all, you will need at least 10 years on your NI record.
You can check your NI record by visiting: gov.uk/check-national-insurance-record.
How does the state pension work?
AT the moment the current state pension is paid to both men and women from age 66 - but it's due to rise to 67 by 2028 and 68 by 2046.
The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age.
But not everyone gets the same amount, and you are awarded depending on your National Insurance record.
For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings.
The new state pension is based on people’s National Insurance records.
Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension.
You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit.
If you have gaps, you can top up your record by paying in voluntary National Insurance contributions.
To get the old, full basic state pension, you will need 30 years of contributions or credits.
You will need at least 10 years on your NI record to get any state pension.
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