Thousands of pensioners approaching State Pension age could see their retirement benefits increase by £667 a year thanks to a little-known loophole.

Currently brand new state pension it comes to £221.20 a week, totaling £11,502.40 a year.

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This full amount is available to those over the age of 66 who have accumulated at least 35 years of National Insurance (NI) contributions.

If you have fewer years of contributions, your pension will be reduced, and if you have not paid us for at least 10 years, you will not receive any state pension.

For most retirees, this is only part of it retirement incomethat they could have other pots from a pension at work, earnings and savings.

For most pensioners, the State Pension is only part of their retirement income as they may also have funds from work. pensionsearnings and savings.

However, the state pension is not automatically paid at the age of 66.

Instead, you must claim it, but this is not mandatory.

Therefore, if you are still working or do not need money immediately, opting to delay claiming your state pension can increase your pension significantly future income.

For every nine weeks you delay claiming your pension, you will receive an additional 1%.

In practical terms, delaying your State Pension by a year will increase your future payments by 5.8%, potentially adding an extra £667 a year.

Meanwhile, deferring for five years will add £3,333.20 to the annual amount you receive.

Of course, these figures are based on current State Pension amounts, but as it increases every year due to the triple lock, the actual amounts you add may be higher.

How much could you get?

How to defer the state pension

You don’t have to do anything to delay your State Pension, just don’t claim it.

The money will then be delayed until you apply to receive it.

When you want money, you can earn it a claim at gov.uk. and the extra money will be added to your weekly payment.

Who is eligible to defer their State Pension?

Most people can defer their State Pension to get a bigger payment, but there are some exceptions.

Time spent in prison or when you or your partner are safe BENEFITS they do not count towards nine-week postponements.

You cannot collect additional state pension any time you get:

• Income support
• Pension credit
• Employment and Support Allowance (income-related)
• Jobseeker’s Allowance (based on income)
• Universal credit
• Carer’s Allowance
• Carer support payment
• Incapacity benefit
• Severe disability allowance
• Widow’s pension
• Widowed parent’s allowance
• Unemployment benefit

You cannot collect additional state pension any time your partner receives:

• Income support
• Pension credit
• Universal credit
• Employment and Support Allowance (income-related)
• Jobseeker’s Allowance (income-related)

If I turned 66 before April 6, 2016

The rules are slightly different if you reached State Pension age before 6 April 2016.

Instead of getting a 1% increase for every nine weeks late, you get 1% for every five weeks you don’t claim.

You can also choose to take the money in larger weekly payments or as a single lump sum.

When you claim deferred state pension, you will receive a letter asking how you would like to receive the extra pension.

You will have three months after receiving that letter to decide what you want to do.