If you\u2019re thinking about claiming it while still in employment, just remember that the Personal Allowance is frozen at \u00a312,570 until April 2028 and any income over that threshold will be taxed. While deferring can boost annual State Pension payments by over \u00a3600 each year, many older workers may not be aware that from the age of 66, they do not need to pay National Insurance Contributions<\/a> (NICs) through their salary.<\/p>\n However, this income boost does not happen automatically and needs to be flagged up to your employer, although you can also get help doing it through HM Revenue and Customs<\/a> (HMRC). If you\u2019re an employee who has already reached State Pension age and still paying NICs, you can claim the money back.<\/p>\n READ MORE: Full list of benefits only people over State Pension age can claim<\/a>READ MORE: New State Pension age changes set to delay retirement payments for millions of people<\/a><\/p>\n Guidance on GOV.UK<\/a> explains how the whole process of removing NICs from your pay works if you are an employee or self-employed.<\/p>\n It states: \u201cIf you\u2019re self-employed, your Class 2 National Insurance contributions will no longer be treated as paid. You stop paying Class 4 National Insurance from 6 April (start of the tax year) after you reach State Pension age.<\/p>\n \u201cYou only pay Income Tax if your taxable income – including your private pension and State Pension – is more than your tax-free allowances (the amount of income you\u2019re allowed before you pay tax).\u201d<\/p>\n How to stop paying National Insurance<\/p>\n The guidance states that if you continue working, you need to show your employer proof of your age to make sure you stop paying National Insurance – this can be done with a birth certificate or passport.<\/p>\n However, if you do not want your employer to see your birth certificate or passport, HMRC can send you a letter to show them instead.<\/p>\n The letter will confirm:<\/p>\n You have reached State Pension ageYou do not need to pay National Insurance<\/p>\n It\u2019s important to be aware that you will need to write to HMRC explaining why you do not want your employer to see your birth certificate or passport.<\/p>\n HMRC will ask you to send your birth certificate or passport for verification if it does not have a record of your date of birth – certified copies are accepted.<\/p>\n Full details on how to stop paying National Insurance from 66 and tax breaks available for people over State Pension age can be found on GOV.UK here.<\/a><\/p>\n New State Pension payment rates<\/p>\n The New State Pension is paid to:<\/p>\n Men born on or after April 6, 1951Women born on or after April 6, 1953<\/p>\n To receive the full New State Pension you need to have paid around 35 years’ worth of National Insurance Contributions, but you may need more if you were ‘contracted out’ – find out more here.<\/a><\/p>\n Full weekly New State Pension rate: \u00a3230.25Every four-week pay period: \u00a3921.00Deferring or delaying claiming State Pension<\/p>\n Deferring your State Pension could increase the payments you get each week when you decide to claim it, as long as you defer for at least nine weeks. Your State Pension increases by the equivalent of 1% for every nine weeks you defer, this works out as just under 5.8% for every 52 weeks.<\/p>\n The extra amount is paid with your regular State Pension payment, however, it\u2019s important to be aware any extra payments you get from deferring could be taxed – find out more on GOV.UK here.<\/a><\/p>\n It’s also important to be aware that deferred State Pensions increase each year in line with the September Consumer Price Index (CPI) inflation rate and not the highest measure of the Triple Lock policy.<\/p>\n Join the conversation on our Money Saving Scotland Facebook group<\/a> for money-saving tips, the latest State Pension and benefits news, energy bill advice and cost of living updates.<\/p>\n Sign up to our Record Money newsletter and get the top stories sent to your inbox daily from Monday to Friday with a special cost of living edition every Thursday – sign up here<\/a>.<\/p>\n You can also follow us on X (formerly Twitter) @Recordmoney_<\/a> for regular updates throughout the day or get money news alerts on your phone by joining our Daily Record Money WhatsApp community<\/a>.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/11\/1762683492_757_0_DR-MOney.png\")
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