Will my state pension be paid once I retire or do I want to assert it?

I am about to turn 66 and plan to retire just before my birthday. Will my state pension immediately start being paid to me from that date? 

Do I get it paid out automatically and if so, how do they know where to pay it to? 

Is there anything that I need to do? B.B via email

Harvey Dorset, of This is Money, replies:  Upon turning state pension age, which is currently 66, you might expect that your payments will begin to arrive in your bank account as soon as you reach your birthday.

However, it is down to individuals to begin claiming their state pension from the Department for Work and Pensions when they reach 66.

This will entitle you to £221.20 per week if you have made 35 years of National Insurance payments.

However, some people get less if they have 35 years or more on their record, but they contracted out of second state pension (also called SERPS) contributions for periods before that system was abolished.

Ahead of your 66th birthday, you should receive a letter from the Government prompting you to claim your pension. 

But this is not always the case in practice – for example, if the DWP doesn’t have a current address for you. So, you might need to be proactive.

> Make a state pension claim on gov.uk here

If you fail to claim your state pension, it will be automatically deferred, but this does come with its own benefits.

The longer you defer claiming your state pension, the higher your weekly payments will be. 

This could prove beneficial for those who don’t need to claim it right away, or who might end up unnecessarily paying more tax if they are still working and receiving a salary. We explain the rules and how to weigh the pros and cons of deferring your state pension here.

This is Money spoke to two money experts to find out what steps you need to take to ensure you receive your state pension when it is due.

Becky O’Connor, director of public affairs at PensionBee, replies: When thinking about the state pension, the most important thing to remember is that you won’t get it automatically – you have to claim it.

Currently, the full new state pension is £221.20 per week, or £11,502 a year (2024/25). 

To be eligible for the full amount you need at least 35 ‘qualifying’ years of National Insurance credits. You can check your state pension forecast by logging into your Government Gateway account on gov.uk.

As you approach state pension age, which is currently 66 (rising to 67 by 2028), you should receive a letter from the Government no later than two months before your birthday telling you how to claim it and what bank account you would like it to be paid into. 

If you don’t receive a letter, you can still make a claim online on gov.uk.

Once claimed, your first payment will usually arrive within five weeks of reaching state pension age and covers the period from your qualifying date. From then on, you’ll usually receive payment every four weeks after that.

The payment date will depend on the last two digits of your National Insurance number. 

For example, if the last two digits of your NI number are 00 to 19, you’ll get paid on a Monday, if they’re 20 to 39 you’ll get paid on a Tuesday and so on.

It’s important to remember that the state pension alone isn’t enough for most people to fund their retirement. 

In fact, according to the Pensions and Lifetime Savings Association’s Retirement Living Standards, a single person needs £43,100 a year for a ‘comfortable’ retirement, while a couple would need £59,000. 

You can get a more detailed and tailored idea of how much you may need in retirement by using This is Money’s pension calculator.

If you don’t need to access your state pension straight away, you may want to consider delaying it. 

Your state pension will increase by 1 per cent for every nine weeks you delay it, which works out to just under 5.8 per cent for every full year you put off claiming. 

For example, if your starting weekly state pension was £221.20, it would increase to £234.02 a week if you delayed it for a year.

Peter Hopson, pensions technical specialist at the Money and Pensions Service, replies: Once you turn 66 and you’ve decided that you want to start receiving your state pension, you will need to actively claim it. It isn’t paid automatically.

Four months before reaching state pension age you should receive a letter, which will advise you on how much state pension you will receive.

If you haven’t received a letter, but you are within three months of reaching the eligible state pension age, you can request one at gov.uk, under ‘Request an invitation code’.

Once you receive your letter, you need to apply for your pension either online, by post, or by phone. 

When you do so, you’ll need to provide various pieces of information, including your bank or building society details for the money to go into.

You don’t need to start taking your state pension as soon as you turn the eligible age. You can instead defer it and claim it later, which will increase the pension you receive.

You can also claim your state pension even if you continue to work.

The amount of state pension you receive will vary from person-to-person, depending on your National Insurance record – how much National Insurance you have paid in your lifetime.

It is recommended to check your level of entitlement to the state pension, to make sure you’ll be receiving the highest possible amount. If you aren’t set to receive the maximum entitlement, it may be possible to boost this by paying voluntary National Insurance contributions.

To apply for your state pension online, you’ll need the invitation code which will be included in the letter you should have received. If you don’t have access to the internet, you can apply by phone by calling the Pension Service on 0800 731 7898.

When you apply, make sure you have the following information to hand:

· The dates of any time spent living or working abroad;

· Your bank or building society details;

· If applicable, the date of your most recent marriage, civil partnership, or divorce.

Once you have applied for your state pension, you must tell the Pension Service if your circumstances change. Changes include changing addresses, moving to another country, change of bank details, a new marriage, civil partnership or divorce.

Once you have claimed your state pension, the first payment should arrive within five weeks of turning state pension age.

Following that, you should receive a full payment every four weeks.

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