Exact code revealing the date your state pension will increase by up to £900 per year
MILLIONS on state pensions will see their benefits rise by up to £901 a year from April.
But a specific code in your social security number indicates the exact date on which you will receive the pay increase.
The government confirmed in spring budget documents last week that the state pension will increase by 8.5% as a result of the triple lock mechanism.
Benefits will increase from April 8, the first Monday after the start of the new tax year.
But a code in your NI number will tell you the exact date you will see payments increase.
The number determines on which day you will receive your pension money.
The state pension is paid every four weeks and the day you are paid usually depends on the last two digits of your NI number.
If the numbers are between 00 and 19, you will be paid on Monday.
It is Tuesday if they are between 20 and 39, and Wednesday if the numbers are between 40 and 59.
Numbers 60 to 79 are paid on Thursdays and numbers 80 to 99 are usually paid on Fridays.
For example, if your NI number ends in 65, you could see your payment increase on April 11, if that is the time of month you usually get paid.
Please note that the AOW is usually paid out every four weeks. If you expect to receive benefits between April 1 and April 5, you may not actually see your pay increase until early May.
What is the state pension?
The state pension is a government benefit and is currently paid to people aged 66 and over.
There are two types: the basic pension and the new state pension.
The basic pension is paid to men born before April 6, 1951 and to women born before April 6, 1953.
The maximum state pension is £156.20 per week, although you may get less if you don’t have the full number of eligible National Insurance years.
The new state pension is paid to men born on or after April 6, 1951, and women born on or after April 6, 1953.
It is worth up to £203.85 per week, but again you must have the full number of qualifying NI years to get this amount.
By how much will the AOW increase?
Both the basic and the new AOW increase every year in line with the triple lock.
This means they rise in line with the higher of wages from May to July, the Consumer Price Index (CPI) of inflation from September last year and 2.5%.
Both pension styles will rise by 8.5% from next month, based on the annual growth in average total employee wages between May and July last year.
That means the state’s basic pension will rise from £156.20 per week to £169.47 per week – worth an extra £690.40 per year.
Meanwhile, the full new state pension will rise from £203.85 per week to £221.17 per week – an extra £900.64 per year.
How to apply for the state pension
You will not automatically receive the AOW pension and must actively apply for it.
This way you can check which benefits you are entitled to
The quickest way to see what benefits you can claim is to use one of the three benefits calculators recommended by Gov.uk.
They are all free to use. They are:
Before using the tools, make sure you have important financial information to hand, such as bank and savings statements and information about pensions and existing benefits.
If you live with a partner or family, collect their basic financial details as well, as this may affect your claim.
For each of these, you will be asked to provide information about your circumstances, such as your current employment and income.
You will also need to provide information about yourself, including your age and who you live with.
You can then use the contact details at Government.uk to get the ball rolling and apply for what you’re owed.
Of course, the tools only provide an indication of the benefits you can claim – and usually do not include means-tested benefits, so you may be entitled to even more.
You will receive a letter stating what you need to do no later than three months before you reach state pension age.
The easiest way to apply is online on the government website, but you can also apply by post or telephone.
You can postpone receiving your state pension and receive higher benefits if you still claim them.
If you wait to claim the new state pension amount, it will increase by 1% for every nine weeks you defer – worth 5.8% for every 52 weeks.
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