Millions of state pensioners across the UK are being reminded that a simple two-digit code holds the key to when their vital income will arrive this January.
Your Payment Day Decoded
The Department for Work and Pensions (DWP) has confirmed that the final two digits of your National Insurance number are the critical factor in scheduling your state pension payments. This system means that not all pensioners will receive their funds on the same day, with payments being spread across the working week.
Here is how the code breaks down and determines your payment schedule:
- If your last two digits are between 00 and 19, your payment is typically issued on a Monday.
- Digits from 20 to 39 mean you will receive your pension on a Tuesday.
- For those with numbers ending from 40 to 59, payment day is Wednesday.
- The code 60 to 79 indicates your state pension is paid on a Thursday.
- Finally, numbers 80 to 99 usually result in a Friday payment.
Understanding the New vs. Old State Pension
It is important for recipients to know which pension scheme applies to them. The new State Pension came into effect in 2016, replacing the previous system, often called the 'basic State Pension'.
Whether you receive the new or old pension depends on when you reached the State Pension age. Individuals who had already qualified for the old scheme continue to receive it, while new claimants receive the new State Pension. Over time, the old system is being phased out completely.
The State Pension age is currently 66 for both men and women. You can check your precise State Pension age and forecast using the official government checker on GOV.UK.
Claiming Your State Pension
Receiving your state pension is not an automatic process. You must actively claim it. The Pension Service should send you an invitation letter approximately four months before you reach your State Pension age.
This letter gives you a choice: you can choose to claim your pension immediately or defer your claim. Deferring means you will receive higher weekly payments at a later date.
By understanding this simple two-digit code system, pensioners can better plan their finances and know exactly when to expect their crucial DWP payment each month.
