State Pension fail – if you make this mistake you will get NOTHING when you turn 66 | Personal Finance | Finance

Yet some people end up waiting even longer to get their State Pension, when they don’t need to do so. That’s because they make one simple error as they approach retirement age.

The error may seem basic, but is surprisingly easy to make. In fact, the Department for Work and Pensions (DWP) says it is the single biggest reason that people fail to get their State Pension when they turn 66.

Many people assume they automatically get the State Pension once they reach retirement age, but that is not the case.

You have to claim it. People do not realise that and miss out as a result.

Roughly two months before you turn 66, the Pension Service should write to you, explaining what happens next.

It will send you an ‘invitation code’ to activate your State Pension claim. That step is down to you, so you need to take action.

The quickest way is to activate it online.

Otherwise phone the Pension Service on 0800 731 7898 to get a State Pension claim form posted to you.

If you don’t do anything, you will not receive any State Pension. It’s that simple.

You do not have to wait for that letter from the Pension Service, though.

If you are within four months of reaching State Pension age you can go ahead and make your claim.

That can set your mind at rest and make sure you get the money as soon as possible.

However, even if you do that, you don’t get the State Pension the moment your turn 66, but have to be a little bit more patient.

As the government-funded MoneyHelper website explains, your first payment will usually be within five weeks of reaching State Pension age.

After that, you should get a full payment every four weeks. Although if you prefer, you can apply to get your State Pension paid weekly.

The good news is that you don’t actually lose any money if you fail to claim right away. So there is no need to panic if you have forgotten or mislaid your State Pension invitation.

READ MORE: State pension payments could stop for thousands in months – act now

So long as you claim within 12 months of reaching retirement age, you can ask for backdated payments to when your entitlement started.

If you leave it longer than that, you will get a higher weekly sum to make up for what any income that you have missed out on.

You are not obliged to draw your State Pension at age 66 if you don’t want to, you could actively choose to delay taking it, and claim more income later.

This is known as State Pension deferral.

For every nine weeks you defer taking your State Pension, you will get one percent extra income for the rest of your life. By deferring for a full year, you will get 5.8 percent more. The minimum deferral period is five weeks.

Working for longer also allows you to pay more into a workplace or personal pension, which should further boost your income when you finally do retire.

DON’T MISS:
Lloyds and Halifax to close another 66 bank branches – see full list [REVEAL]
Best savings account UK: The top 10 easy-access accounts [GUIDE]
Pensioners could be eligible for top up worth £3,300 plus £650 payment [INSIGHT]

Deferring works best for those who are fit, well and want to continue working. It will not suit those who are in poor health or simply need the maximum amount today, which is the vast majority of people.

If you need to claim right away, watch out for that DWP letter.

You can get information on how to check your eligibility and make a claim by freephone on 0800 99 1234, or by visiting Gov.uk/new-state-pension/how-to-claim.

Anyone can get a free State Pension forecast by visiting Gov.uk/check-state-pension.

This will give you an estimate of what you could receive. But only if you actively claim it.