State Pension; why can't it be paid monthly
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PaulPonting
Posts: 63 Forumite
Why is the state pension paid 4 weekly rather than monthly. Is it historic that is has to be paid on a Thursday. I, like others I know, I would much rather have their pension paid on a set date each month rather than every 4 weeks. Why can't this be an option for everybody receiving the State Pension. What are other people's views on this subject.
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Here is a previous thread on the subject
http://forums.moneysavingexpert.com/showthread.php?t=3745563
State pension is not only paid on a Thursday.
If you reached pension age after 6 April 2010 it is now paid on a different day of the week depending on the last 2 digits of your NI number.0 -
PaulPonting wrote: »Why is the state pension paid 4 weekly rather than monthly. Is it historic that is has to be paid on a Thursday. I, like others I know, I would much rather have their pension paid on a set date each month rather than every 4 weeks. Why can't this be an option for everybody receiving the State Pension. What are other people's views on this subject.
and why can't it be paid weekly?0 -
Have they stopped paying weekly? I know they were still doing it 2 years ago for new retirees.
On the question of monthly paying, I once thought that would be a great idea as I have always been paid monthly but then I thought it through. There is no way they would just divide the annual amount by 12, so you would land up with January 31/365 paid and February with 28/265 paid and then of course there a leap years!
I now look at the month I get paid twice as being a month's holiday pay, but I must admit that being paid 4 weekly if you are on a tight budget must be a challenge.1 -
Hi,
as stated above, the day your pension is paid depends on the last 2 digits of your National Insurance number,
00 to 19 Monday
20 to 39 Tuesday
40 to 59 Wednesday
60 to 79 Thursday
80 to 99 Friday0 -
Despite what I said in the previous thread I think it can be paid weekly in arrears but you have to ask as the option is not available on the claim form.
I have no direct experience though.
my understanding is the relevant act allows weekly payments but the relevant section hasn't been activated
but I'm not an expert0 -
That was how I understood it but I have seen several posts on here within the last year or so where people have stated they have claimed their state pension and it is to be paid weekly.my understanding is the relevant act allows weekly payments but the relevant section hasn't been activated
but I'm not an expert
They have stated that it has to specifically requested as the option is not offered on the form.0 -
Hi,
from The Tax Guide:
Payment Frequency
The frequency with which your state pension is paid will, to a certain extent, be left up to your judgement. When you reach retirement age and the payments that you are forecasted to receive are over £5, you will be offered the choice between having your pension paid on a weekly basis, every four weeks, or every 13 weeks. If you will receive payments of £5 or less, however, these will be paid on an accumulated annual basis.
I think best idea for OP would be to contact DWP.0 -
If the new IT system for STP actually works then this will offer payment of SP monthly.
The current platform does not do monthly payments and never will. If STP is paid via this platform then monthly payments cannot be offered and would have to wait until the accounts are migrated to the new platform.
All existing SP accounts will eventuallybe migrated to a new platform (logically the same platform as STP, you would have thought) and it would make sense to offer monthly payments then.
Remember though that SP is, at present, a weekly benefit. It is paid at a weekly rate in whole weeks (apart from certain claimants who get paid the "odd days" at the start of the benefit netween the date of entitlement (SPA date) and the payday derived from the NINO. Rates are declared as weekly amounts, never annual amounts.
STP will do away with the "payday relation" so everyone will get the odd days at the begining, when you die or otherwise stop receiving SP it will stop that day, rather than continuing to the payday.
Until this is an annual or daily entitlement it cannot,easily, be paid monthly. Any payment which isnt a whole number of weeks causes chaos because of rounding discrepancies as the total paid is not, necessarily, the sum of the components expressed as whole pence. STP does not succede in reducing the number of components to one when the protected amount, GMP / CODS inflation proofing etc still exist.
What fun (not)0 -
It can be paid weekly in arrears - you must specifically request this when claiming your pension.
http://www.saga.co.uk/saga-magazine/2013/june/state-pension-when-will-i-be-paid.aspx?pid=mn0
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