Posted on: 8th July 2020
Those who reached the state(UK) age before 6th April 2016 will be entitled to the basic entitlement of up to £134.25 per week. Those who retired after this date, however, will receive the new state pension, providing them with up to £175.20 per week from the government.
The state pension is available for those with either 30 or 10 qualifying years of National Insurance contributions, depending on when they retire.
A particular group will be making the transition from universal credit to the state pension. This is why it is important to understand the management of this change, as well as what it entails. Fortunately, the government has given more information to help this group.
On Monday 29th June, the Parliamentary Under-Secretary for the Department for Work and, Will Quince, answered questions in the House of Commons. He mentioned the thousands who will be moving from claiming universal credit to the state pension.
He said: “The government announced in March that anyone reaching Statewhile claiming Universal Credit will be eligible for a run on until the end of the assessment period in which they reach State Pension age.
“An estimated 200,000 people will benefit from this measure over the next five years, receiving on average an additional £350 each.
“I am pleased to confirm that regulations are being laid today to put this measure on a statutory footing.”
Many pensioners who relish the extra income will welcome the new measures.
Prior to this, those who moved between the benefits could be made to wait several weeks, putting them in financial strain. With the move, however, the new group can relax knowing they won’t be left in limbo.
According to the government, there is a specific wait period before one can claim their state pension. The first payment should be in a pensioner’s bank account or building society within 5 weeks of reaching the state pension age. After this, pensioners will receive a full payment every 4 weeks.
However, those receiving the sum should also be aware, as they may receive part of a payment before their first full payment. To prevent confusion, pensioners should keep an eye out for a letter which will tell them what to expect.
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If you are currently seeking Get in touch to find out more.financial planning advice in the Greater Manchester area, you need an IFA that is up to date with all industry news. At Haven IFA, we are here to let you know when to expect any changes and can offer advice on how to make these changes work for you.