State Pension is an important source of retirement income for millions of pensioners in the UK. New figures from the Department for Work and Pensions (DWP) show that while State Pension payments have increased in recent months, two milion pensioners are currently receiving less than £100 a week.
So, is there any way for pensioners to boost the amount of State Pension they get – or might get in the future?
The current full State Pension
Currently, the full new State Pension is £179.60 per week and the basic State Pension is £137.60 per week.
However, not everyone gets these full State Pension amounts.
To qualify for the full new State Pension, you need 35 years of National Insurance contributions on your record. For the older full basic State Pension, you need 30 years on your record.
Two million Brits are getting less than £100
According to recent figures released by the DWP, the average amount of State Pension currently being claimed has risen to £172 for men and £147 for women.
However, slightly more than two million people are currently claiming less than £100 per week. Women account for more than three-quarters of this group (1.57 million).
Commenting on these findings, Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “Some of these people have other sources of income they can rely on, but there are many, particularly older women, who are wholly reliant on their State Pension and find themselves in desperate financial straits.”
How to boost your pension
If you are over State Pension age
If you are currently receiving less than the full amount of State Pension, you may be able to get a boost worth thousands of pounds a year in the form of Pension Credit.
This is a payment made to people who are over State Pension age and on a low income. Pension Credit currently tops up your weekly income to £177.10 if you are single and £270.30 if you are a couple.
You can get Pension Credit even if you have other income or savings. Furthermore, if you qualify, you can receive a variety of other benefits, such as Council Tax discounts and a free TV licence (if you’re over 75), among others.
The DWP estimates that one million people are missing out on this support because they don’t know they can claim it or that they need to.
If you are below State Pension age
If you are approaching retirement, Hargreaves Lansdown recommends the following four steps to potentially boost the amount you will get.
- Check your State Pension forecast. You can do this on the gov.uk website. The forecast will tell you the amount you will receive and at what age. With this knowledge, you can see whether you need to top up your pension.
- If you have children, see whether you can claim Child Benefit. If you claim Child Benefit, you will receive National Insurance credits that count towards your State Pension.
- Claim Specified Adult Childcare Credits. These are available to grandparents or family members caring for a child under 12 when the parent or main carer is working. As with Child Benefit, you get credits that count towards your State Pension.
- If you have some spare cash, you can purchase credits to fill any gaps in your NI record. A full year’s worth of credits costs around £800, and you can typically buy up to six years’ worth of credits.
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About the author
Sean is a personal finance writer with a strong passion for helping others become more financially literate and make better financial decisions. He covers everything from credit cards to savings to investing.
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