Rule could see State Pensioners receive boost worth almost £1,000
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State pensioners have the opportunity to boost their pension pots by an extra £916 due to a lesser-known rule, although it does come at a cost. People can currently claim State Pension at age 66, but this will rise to 67 in 2028, and eventually, 68 by 2048.
This means you'll need to work longer or rely on a private or workplace pension if you want to retire earlier. However, there is a method known as deferral that could add a £916 top-up to your pension pot. You'll have to wait an extra year to claim your State Pension - but the total amount you receive when you start collecting it will be higher. At present, for every nine weeks you delay taking your State Pension, the payout increases by 1 per cent, according to the Express.
This equates to a 5.8 per cent increase per year, or £666. These figures apply to those on the New State Pension, which is currently £221.50 per week but will rise annually in line with the Triple Lock. This means those who reach State Pension age after April 6, 2016, will be eligible for the deferral boost, i. e, those born after 1949. Those on the old State Pension - born before 1949 - could see an extra 10.4 per cent added to their £169.50 state pension per week, resulting in a total of £916 extra per year.
The government has set out clear instructions for those looking to claim their State Pension, particularly pointing out something for higher earners: "You do not get your State Pension automatically - you have to claim it. You should get a letter no later than two months before you reach State Pension age, telling you what to do.".
