Hundreds of thousands of pensioners in the UK could be due a payout worth more than £6,000, with finance experts saying many have been “underpaid”. According to Money Saving Expert, the advice site founded by Martin Lewis, more than 230,000 people in the UK could be eligible.
Some affected groups should be paid automatically, experts on the site say, however, others will need to claim.
Women have been disproportionately affected, but some men could also be impacted.
Money Saving Expert explains: “More than 230,000 women (and some men) are thought to have been underpaid their state pension and could be due a payout – with the average amount being more than £6,000.
“While some affected will now get an automatic payment, not all will.”
But it warns that pension entitlement can be “complicated” stipulating that its guide may not be definitive.
“See this as a ready reckoner rather than a definitive guide – but if you believe you fit into one of the groups below and should be getting more, check,” the site continues.
Who should receive the payout automatically
The Government is currently reviewing pension records to find those who should have received an automatic uplift in their pension, but didn’t.
You could be set for an automatic payment if you are:
- A woman whose husband turned 65 on or after 17 March 2008 and you’re being paid less than 60 percent of your husband’s basic state pension
- A widow whose husband died after 17 March 2008 and you were paid less than 60 percent of his state pension while he was alive, or a widow whose state pension didn’t increase when your husband died
- Aged 80 or over and not being paid at least £85 a week in state pension.
Money Saving Expert says: “The Government is prioritising those over 80 and those who have been widowed. But if any of the situations above apply to you, you’ll be contacted by the Department for Work and Pensions over the next few months if you’re due a pension boost. You don’t have to do anything, but it’s worth checking if you’re owed, and if so, how much.”
Who needs to claim for the payout
However, several groups of pensioners won’t receive a payout automatically and will need to claim.
This mainly applies to women who reached state pension age before April 2016 but some men, and those who reached pension age later, may also be impacted.
Money Saving Expert says you should check if you are entitled to the money if you:
- Took time off work between 1978 and 2010 and claimed Child Benefit or Income Support for caring for a person with a disability or long-term illness
- Are a woman whose husband turned 65 before 17 March 2008 and you’re being paid less than 60 percent of his basic state pension
- Are a woman who got divorced after reaching state pension age, and you haven’t had your pension reassessed
- Are a married woman on zero basic state pension, but might be getting a small amount of additional state pension, also known as SERPS, or graduated retirement benefit
- Are widowed and your late spouse either reached state pension age or died before 6 April 2016 but you’re not receiving any inherited pension.
If any of this applies to you, more information on what to check and how to claim can be found at moneysavingexpert.com/reclaim/married-women-missing-state-pension-boost/#howtocheck.
