State pensioners who are aware of a little-known top-up rule have been handed a lifeline of £916.
Currently, the state pension can be collected by those 66 and over, but this is set to increase to 67 by 2028.
As time goes on, employees will be expected to work for a larger portion of their life, or rely on a private or workplace pension for an earlier retirement age.
However, a little-known deferral rule could add an extra £916 into pensioners’ pockets if they put off collecting their pension for a year.
The state pension age will rise to 67 by 2028
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It is estimated that, for those on the New State Pension, each pension contribution increases by one per cent for every nine weeks deferred, which equates to an rise nearing 5.8 per cent (£666) per annum.
Those who have been eligible for their state pension since April 6, 2016, can take advantage of this deferral trick, which many might miss.
This money-saving tip has been highlighted after the news that millions UK pensioners were being stripped of Winter Fuel Payments.
The Department for Work & Pensions issued a warning to those who do not claim Pension Credit might lose their access to the energy bill payment this winter, which ranges from £200 to £300.
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The Labour Government’s announcement that it would scrap the Winter Fuel Payments has received significant backlash from opposition parties, as well as campaign groups.
Sir Keir Starmer’s own MPs have shown their disdain for the move, with Coventry South MP Zarah Sultana voting against the Government’s plan to cut the allowance just weeks after being suspended for backing an amendment scrapping the two-child benefit cap.
She said: “There is research to show that cold homes kill and this policy could have fatal consequences.”
GB News presenter Patrick Christys launched a fundraiser for charity Friends of the Elderly to support the vulnerable as Britain edges closer to colder, wintry temperatures, which has now surpassed its initial target of £260,000.
Even Keir Starmer faced backlash from his own party over Labour’s winter fuel payment cuts, as Zarah Sultana was suspended following the vote
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Responding to the Social Security Advisory Committee which condemned Labour’s Winter Fuel Payment Regulation, Shadow Work & Pensions Secretary Mel Stride said: “The Government’s own advisory body has stated that WinterFuelPayment legislation is not fit for purpose.
“It confirms that leaving almost 10 million pensioners out in the cold to pay for union pay rises will have a huge impact on pensioners already in poverty.
“Many will face the dreadful choice between heating and eating caused by this Labour Government.”
He added that Labour must “follow their own advice and unpick this cruel policy”.
