This piece first appeared in the money section of the Saga website on 11 November 2009
The text here may not be identical to the published text

GET YOUR PENSION EARLIER

Anyone who gets state retirement pension should check how often it is paid. If it is paid every four weeks, or in rare cases every 13 weeks, then you are getting it in arrears. In other words after it is due.

But you can get your state pension paid in advance every week. If you do that you get it up to five weeks earlier. And that means it is in your account sooner – and perhaps earning interest. It also means that when it goes up in April you will get the rise that much quicker too.

 So it is worth doing. And do it soon because from 6 April the system will change. Anyone who reaches pension age from that date will not be able to get the state pension weekly in advance. Instead they will be given the choice of weekly, fortnightly, or four-weekly payments but all in arrears.

The Government says that anyone who reaches pension age before that date will retain the right to change to weekly in advance. But it is likely that at some future date that choice will be taken away. So it is best to change now before that happens.

The other advantage of payments in advance is that when you die – and we all do – you will be one payment up. It is very difficult for the department to recover that from your estate – and they lose £10 million a year by failing to do so. But if you get your pension paid in arrears then up to four of your final pension payments go to your heirs, not you.

There are no plans at the moment to move those who already get the pension paid in advance to a payment in arrears. If it does happen in the future they should be compensated.

You can change to weekly in advance by calling the pension service on 084560 60 2 65.


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