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Daily Record
Daily Record
Lifestyle
Linda Howard

Simple ways to boost State Pension payments before and after reaching retirement age

The latest figures from the Department for Work and Pensions (DWP) show that there are nearly 12.5 million people across Great Britain receiving State Pension payments, including 1.1 million living abroad and 992,052 in Scotland.

Of the overall total, there are 10.1 million older people receiving Basic State Pension payments of up to £141.85 per week, compared to 2.4 million getting New State Pension payments, which are worth up to £185.15 each week. Worryingly, there are over 1.8 million people receiving less than £100 per week in State Pension payments and just under 1.4 million of these are women.

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown warns at least some of those on the lowest State Pension payments could be missing out on a DWP benefit worth more than £3,500 each year in financial support, discounts and other benefits which could increase their income.


Ms Morrissey explained: “The new State Pension has done much to boost the financial resilience of women in retirement and close the gap with men. This is great news but the comparison between what women receive on the new and basic rate pension systems is stark - on average more than £18 per week.

“We also forget that many people do not receive anywhere near the full amount of State Pension and there are currently 1.8m people receiving less than £100 per week. Again, the vast majority of these are women who have accrued large gaps in their National Insurance contribution history due to time taken away from the workforce to care for family.”

She added: “Many of these people may well have other sources of income to see them through retirement but for those who don’t, life can be a real financial struggle.”

Nearly two million older people receive less than £100 each week in State Pension payments. (Getty)

State Pension rates for 2023/24

Full New State Pension

You are eligible for the New State Pension if you are:

  • a man born on or after April 6, 1951
  • a woman born on or after April 6, 1953

New State Pension payment rates

  • Weekly rate: £203.85, an increase of £18.70 from £185.15
  • Four-weekly rate: £815.40, an increase of £74.80 from £740.60

Basic State Pension (Category A or B)

You are eligible for the Basic State Pension if you are:

  • a man born before April 6, 1951
  • a woman born before April 6, 1953

Basic State Pension payment rates

  • Weekly rate: £156.20, an increase of £14.35 from £141.85
  • Four-weekly rate: £624.80, an increase of £57.40 from £567.40

Five ways to boost your State Pension payments

Helen Morrissey shares her top five tips to help increase your finances before and after you reach State Pension age.

Claim Pension Credit

If you are over State Pension age and on a low income then you should check whether you are eligible for Pension Credit - use the handy online calculator on GOV.UK here.

Pension Credit tops up your weekly income to £182.60 if you’re single and £278.70 in joint income if you have a partner.

It can also entitle you to other benefits such as help with Council Tax payments and a free TV licence for those aged over 75 - find out more here.

Check your State Pension forecast

Go online and check your State Pension entitlement on the ‘Check your State Pension forecast’ page on the GOV.UK website here.

This will also tell you your State Pension age - when you can officially retire and start collecting payments.

Claim Child Benefit

Women in particular miss out on valuable State Pension credits when they are at home looking after children. However, if they claim Child Benefit, they will receive National Insurance credits that count towards their State Pension. Many women have missed out on this in the past because their husband claimed the Child Benefit rather than themselves.

Others missed out when they opted out of Child Benefit after the introduction of the High-Income Child Benefit Tax Charge. If you claim Child Benefit in your name, then you will get the National Insurance credit towards your State Pension.

Specified Adult Childcare Credit

Are you under State Pension age and looking after a family member under the age of 12 while their parent or main carer goes back to work?

If this is the case, you could qualify for National Insurance credits under Specified Adult Childcare Credit as the working parent essentially transfers their NI credit to you.

There are other situations where you are receiving benefits and you can still claim National Insurance credits. For example, if you are off work sick on Statutory Sick Pay. It is always worth checking to see if you may be entitled.

Buy National Insurance credits

If you can spare the cash you can plug gaps in your National Insurance record by buying voluntary class 3 NI contributions.

Buying a full extra year costs around £800 but it’s worth checking with DWP before you do so to make sure you will benefit from the extra contributions.

Find out more about plugging gaps in your National Insurance record on GOV.UK here.

To keep up to date with the latest State Pension news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.

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