Those people would have reached retirement age before April 2016 and therefore were put onto the old basic state pension system paying £8,814 a year in total
State pensioners born before specific years could be eligible for a pension boost worth £2,991 a year.
This is due to a change in the state pension system eight years ago, which has resulted in millions of pensioners receiving less than they need to live on. However, with one simple claim, state pensioners born at a certain time could receive an additional £2,522 plus extra benefits. The state pension system underwent changes in 2016.
The basic state pension provides £169.50 to those who retired before 2016, applicable to men born before April 6, 1951, and women born after April 6, 1953. These individuals would have reached retirement age before April 2016 and were therefore placed on the old basic state pension system, paying £8,814 annually.
The new state pension system pays significantly more – £221.20 per week or £11,502 per year. Anyone born after these dates will automatically claim the more lucrative new state pension.
While older pensioners cannot transfer from the old basic state pension to the new state pension, anyone on the old state pension system can top up their weekly income to nearly the same amount using Pension Credit. Pension Credit increases your income to £218 a week, meaning you’d receive £11,336 in total, a top-up of £2,522 per year, if you’re on the older basic state pension and otherwise have a weekly income lower than that, reports the Express.
Under the new system, those claiming Pension Credit will still receive their £300 Winter Fuel Payment, bringing your total to £2,822. Additionally, you’ll be entitled to a free TV Licence worth £169.50, taking your total boost to £2,991.50. This doesn’t include any potential council tax discounts or housing benefits you may qualify for, depending on your local authority. To claim, ring the Pension Credit hotline at 0800 99 1234.
