The contributory benefit is paid to pensioners who have provided decades of National Insurance payments to the government throughout their working lives. Pensioners are provided with a sum of money each week, which helps with the cost of living after finishing work. The sum of money is made available for pensioners who have contributed years of National Insurance payments throughout their working lives.
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Those who are entitled to the benefit can currently expect to receive, at the most, £134.25 per week on the basic State Pension.
However, on the full new State Pension, claimants may be entitled to slightly more money – at £175.20 per week.
The State Pension recently saw an increase in line with the tax year as part of the Triple Lock Mechanism implemented by the Conservative government.
This system sees the State Pension rise by whichever is the highest in a year: average earnings, the rate of inflation, or 2.5 percent.
On April 6, the start of the 2020/21 tax year, the State Pension figure rose by 3.9 percent in line with average earnings across the UK.
The State Pension age was traditionally set at 65, however there are some additional changes alongside the tax year that those set to reach pension age should look out for.
The age at which a person becomes eligible to claim State Pension is set to change, meaning the benefit could be further off for some Britons.
The Department for Work and Pensions (DWP) has confirmed the eligibility age will now move to 66, with an eventual rise to 68.
A statement on the government’s website has said the move is in line with continuing increases in life expectancy, which means Britons are spending longer in retirement than in the past.
Changes will take place in increments, with those born between particular dates affected.
And the next major changes is due to take place on May 6, 2020.
Most recently, anyone born between June 6, 1954 and July 5, 1954 will see their state pension age immediately rise from 65 to 66.
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The government plans to increase the State Pension age to 68 between 2037 and 2039.
This will also affect those born between April 6, 1970 and April 5, 1978, who will see their State Pension age rise to between 67 years and 1 month, and 68 years depending on date of birth.
While State Pension is not automatically paid, it is easy for those approaching pension age to keep track of the money to which they are entitled.
The government sends a reminder to retired people no later than two months before they qualify for the sum, reminding them to make a claim.
And the government’s website also includes a State Pension calculator which can help Britons determine when they will receive the State Pension, and how much they could be entitled to.
By entering date of birth and gender, the tool states when a person becomes eligible for the sum.
The State Pension can also be increased through a series of individual decisions.
A retired person can choose to delay a claim on their pension to increase the total sum, or speak to a financial adviser to provide ways to gain more money.
Additional support is also provided to those who are disabled or who need assistance with utility bills and rent.
Pensioners may also qualify for additional DWP benefits depending on their financial situation, which can be checked through the government’s website.
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