state pension query

solar_power

Soon to start receiving state pension later this year. Just a simple question, why is there no monthly payment option?

xylophone

See BRIEFING PAPER
Number CBP-260, 27 October 2017
State Pension payment
arrangements


The State Pension is a weekly benefit, paid in multiples of a week.

For people who reached State Pension age before 6 April 2010, it can be paid weekly in advance or four weekly in arrears. Payments start from the payday (normally Monday) after the date on which the person becomes entitled to their pension. It is then paid on each subsequent payday, including the week in which they die. In some cases there will be a few days for which pension is not received at the beginning; in others therewill be a few days for which pension is paid after death. On balance there is no saving to the Exchequer from this method of payment.

For people reaching State Pension age on or after 6 April 2010, a payday is allocated according to the final two digits of the customer's
National Insurance number. Payment is weekly, fortnightly or four-weekly in arrears. A part-week payment can be made at the start of the claim for people who move onto the State Pension from a working age benefit.

The arrangements changed again when the new State Pension was introduced for people reaching State Pension age on or after 6 April 2016. For people entitled to this, there is no gap. Although they may have to wait a few days for their first payday (as before),they will receive an amount in arrears to cover the gap.

Silvertabby

solar_power wrote: »

Soon to start receiving state pension later this year. Just a simple question, why is there no monthly payment option?

Crazy, isn't it? I assume that it's a hangover from when almost everyone was paid weekly, paid their rent etc weekly - and so expected to draw their State pension weekly as well.

I appreciate that some people are still paid this way, but I'm quite sure that they now pay their rent etc on a monthly basis. I'm also sure that most who are used to being paid monthly would prefer their State pensions to be paid that way as well. We certainly would - our other pensions are paid on the last working day of the month, while most bills and DDs go out at the start of the month. Mr S's State pension, however, was paid on the 23rd last month, the 20th this month, etc etc. Madness.

solar_power

Shame they call it a benefit, I've never claimed a benefit in my life. Just thought if you had a monthly option it would tie in with my company pension and the PAYE.

Southend1

What!!!8217;s the problem with calling a benefit a benefit?

solar_power

I'm not getting into a row about this old chestnut.

Southend1

Touched a nerve? Sounds like you!!!8217;re one of those who is happy to criticise anyone down on their luck then when it!!!8217;s your own turn to benefit from what we all pay in you realise you!!!8217;re not so very different.

solar_power

before I carry on what is !!!8217;

ognum

Silvertabby wrote: »

Crazy, isn't it? I assume that it's a hangover from when almost everyone was paid weekly, paid their rent etc weekly - and so expected to draw their State pension weekly as well.

I appreciate that some people are still paid this way, but I'm quite sure that they now pay their rent etc on a monthly basis. I'm also sure that most who are used to being paid monthly would prefer their State pensions to be paid that way as well. We certainly would - our other pensions are paid on the last working day of the month, while most bills and DDs go out at the start of the month. Mr S's State pension, however, was paid on the 23rd last month, the 20th this month, etc etc. Madness.

I am happy with the four weekly option x thirteen a year, works fine.

hyubh

solar_power wrote: »

before I carry on what is !!!8217;

Forum bug that hits fans of a certain fruit-themed technology company...

xylophone

it would tie in with my company pension and the PAYE.

https://www.gov.uk/tax-on-pension/how-your-tax-is-paid