Tips to boost DWP State Pension and income beyond retirement | UK | News

1. Boosting your National Insurance record

National Insurance is a social security contribution paid by employers, employees, and self-employed workers to the government. These funds are exclusively used for social security benefits like the State Pension, with a portion also allocated to the NHS.

While this payment is typically mandatory for workers, there are certain situations where a worker may not pay National Insurance. This could lead to gaps in a National Insurance record, subsequently reducing the total State Pension amount.

Usually, you need 35 qualifying years of contributions to receive a full State Pension. Circumstances that could result in gaps in your National Insurance record include:

• Getting National Insurance credits for less than a full tax year
• Self-employed but did not pay contributions because of small profits
• Living or working outside the UK
• Employed but had low earnings
• Unemployed and were not claiming benefits

However, you might be able to add more qualifying years by:

2. Delaying your State Pension

Government guidance reveals precisely how much you can boost your State Pension income by simply delaying when you claim it. For every year you postpone, weekly payments could rise by ‘just under 5.8 per cent’.

“Your State Pension will increase every week you delay (defer) claiming it, as long as you defer for at least nine weeks,” the government explains. Nevertheless, it adds: “You cannot build up this extra State Pension if you get certain benefits. Deferring can also affect how much you can get in benefits.”

Additionally, it’s worth noting that you can continue working beyond State Pension age to enhance your income. In such circumstances, you’ll generally cease paying National Insurance.

3. Pension Credit

Pension Credit is a benefit administered by the Department for Work and Pensions (DWP) created to assist with living expenses for those beyond State Pension age who have a modest income. There are two forms available: Guarantee Credit and Savings Credit.

Guarantee Credit boosts your weekly income to a specified minimum, whereas Savings Credit offers extra money if you have savings or an income exceeding the basic State Pension.

Age UK emphasises that:

• Guarantee Credit brings income up to £227.10 if you are single, or £346.60 if you are a couple
• Savings Credit is worth up to £17.30 extra per week if you are single, or £19.36 extra per week if you are a couple

Visit GOV.UK for more details on eligibility and alternative ways to increase income after retirement.