A National Audit Office (NAO) study found that a mistake by the Department for Work and Pensions (DWP) did not pay pensioners more than £ 1 billion in state-owned pensions. According to NAO, a total of 134,000 pensioners have low wages.
Can you be one of the affected pensioners? The confirmation method is as follows.
Why are state-owned pensions low-paying and who was affected?
NAO states that outdated computer systems and complex state-owned pension rules are due to underpayments. These two factors caused human error when calculating and processing payments.
The error dates back to 1985. Each affected pensioner may have an average debt of £ 8,900, which may be much higher for some pensioners. The true value of underpayments will only become apparent after the DWP has completed a review of all cases.
Most of the affected people are likely to be women due to problems with the old state pension system. Under the old system National pension Qualifications should have seen their payments rise to 60% of the husband’s basic state pension. In many cases this did not happen.
This issue only affects people who have reached the age of state pensions before 2016. Since 2016, the rules have changed and women’s pensions are no longer linked to husbands’ pensions.
What do the experts think?
Helen Morrissey, Senior Pension and Retirement Analyst Hargreaves Slan’s Down“Thousands of women have missed payments that could make a real difference in their retirement living standards,” said due to errors and problems with DWP.
She says that the current issue only affects women with basic state pensions that were replaced in 2016, but you and your loved ones are getting what they are entitled to. He added that it serves as an important reminder to always check.
According to a recent survey by Hargreaves Lansdown, 16% of people receiving a state pension depend on it. In another study by myFRP and Censuswide, Almost a quarter (23%) of Britain over 55 need to rely solely on state pension payments At retirement because they do not have any other personal or workplace pension.
Given that state-owned pension payments can be important, Retirement income correct.
How can I tell if I’m running out of state pension payments?
If you think your state pension is less than you should be, the easiest and quickest way is to contact the following: Pension service.. Contact us online or call 0800 7310469.
Here are the details you probably need to have:
- Your name, date of birth, national insurance number.
- Current annual state pension.
- Spouse’s name, date of birth (and date of death, if applicable) and NI number.
- Your spouse’s current basic state pension, or what you received before you died.
The pension service will check your records and tell you if you were low paid.
How can I claim the money I owe?
DWP has not yet explained how people claim unpaid payments. However, it states that all payments will be made by the end of 2023. In case of insufficient payment, DWP states that it will contact you to ensure that you receive the money.
It is believed that 40,000 of the unpaid women have already died. DWP has promised to pay the money to be paid to a close relative or another suitable individual.
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State Pension Error in DWP: Here’s how to check for low wages
https://www.fool.co.uk/mywallethero/state-pension-errors-at-the-dwp-heres-how-to-check-if-you-were-underpaid/ State Pension Error in DWP: Here’s how to check for low wages