State pension is something many people are eligible to claim for, after they have reached the state pension age. But, even after the date that a retiree reaches this age, they will still have to request the money. In order to claim your state pension from the government, you can do so via the telephone, a claim form, or via the international claim route – should you be living abroad. For those claiming the new state pension, retirees also have the option of submitting their request online.
So, when you receive state pension age, do you have to claim your state pension?
In actual fact, claiming the state pension is not obligatory, although it is a fund which many people rely on as a source of income after their working life.
The amount a person is entitled to will depend on a number of factors, and is often claimed alongside one’s own private pension.
However, if you don’t require the money from the moment you reach state pension age, holding off on doing so could see you reap rewards.
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The government website explains this, however it differs for those who reached state pension age before a certain date compared to those after.
If you reached state pension age on or after April 6, by delaying the new state pension by five weeks, you could boost the amount you get when you eventually do claim it, by one per cent.
However, this only happens if you defer your payment for at least nine weeks.
For every nince weeks you defer, your state pension will increase by one per cent.
This works out at just shy of 5.8 per cent for each full year that you defer, and will be paid with your regular state pension payment when the time comes for you to claim it.
Anyone who reached state pension age before April 6 2016 can also delay their state pension, but the rules differ.
Rather than it being paid alongside your regular payment, you’ll get the choice between higher weekly payments and a one-off lump sum.
Should you choose the former option, provided you delay your claim for at least five weeks, your payment will increase.
This is the equivalent of one per cent per every five week deferral period.
Across a full year, this works out at an increase of 10.4 per cent.
On the other hand, those born after the forementioned date and who want a lump sum payout are eligible to receive this, as long as they have deferred your payment for at least 12 months in a row.
This is then calculated to include interest of two per cent above the Bank of England base rate, gov.uk explains.
READ MORE: State pension: How to check how much is in your pot – use this calculator