DWP Extra £694 per Year for State Pensioners: Follow this simple rules for extra Payment

DWP Extra £694 per Year for State Pensioners: The Department for Work and Pensions (DWP) has issued an important message for people nearing state pension age in the UK. If you are close to retirement, you should check your post carefully—because missing a key letter could mean losing out on pension money.

You Must Claim Your State Pension—It’s Not Automatic

Many people believe that they will start receiving their pension automatically when they reach retirement age, but that’s not how it works.

The DWP clearly says that you must claim your state pension. Around two months before you reach your pension age, the DWP sends a letter explaining how to make your claim. If you don’t receive or act on this letter, you might delay your pension payments or even miss out on important benefits.

What If You Want to Delay Your Pension?

Some people choose to defer their state pension to get a higher weekly amount later. If this is something you’re considering, here’s how it works:

• You don’t need to do anything to defer—your pension is automatically delayed if you don’t claim it.
• For every 9 weeks that you defer, you’ll get an extra 1% added to your pension.
• This equals about £2.30 more per week.
• If you defer for a full year, that adds up to 5.8% extra, or roughly £13.35 more per week.
• Over a year, that’s an extra £694 annually for life.

Should You Defer? Pros and Cons Explained

Martin Lewis’ Money Saving Expert team has broken down the decision in simple terms:

• Yes, you get more money later—but only if you live long enough to make it worth it.
• For example, if you defer for one year, you give up £11,978 in pension you could have received.
• You’d need to live about 20 more years after retirement to break even.
• For a healthy 66-year-old, that’s about average life expectancy.

So, if you’re in good health, deferring might work in your favour long-term.

But if you’re not well or concerned about your health, you may not reach the break-even point, meaning you could lose money overall.

As Martin Lewis’ team puts it:

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“There’s no crystal ball. It really depends on your personal situation.”

What You Should Do Now

If you or someone you know is nearing pension age, here are some simple steps to follow:

• Check your mail for any DWP letters—especially within two months before your pension age.
• Claim your pension if you want it to start right away.
• Consider deferring only if you’re confident about your future health and finances.
• Talk to a financial advisor if you’re unsure what’s best for you.

Your state pension is not automatic—you must take action. Whether you decide to claim your pension immediately or defer it for a better payout later, the most important thing is to be informed. Keep an eye out for letters from the DWP, understand your options, and choose what works best for your life and health. Missing this simple step could cost you money, so stay alert and take charge of your retirement future.