There is a difference in the claiming procedure between personal pensions and state pensions. Since each pension scheme differs in the claiming process, make sure you contact your plan manager or investment adviser to obtain the right forms and correct procedure to claim your pension.
Most schemes will automatically send you the claims form as you near your retirement age. If you do not receive one from your personal pension administrator, follow up and have one sent to you. Once you fill out the form and return it, the pension administrator will confirm what your pension pay-out will be. You will then have a choice to elect a portion to be paid out as a lump sum payment and/or monthly payments. Up to 25% of your pension funds can be paid out tax-free as a lump sum. Any amount over that will be taxed at the usual income tax brackets.
Claiming your state pension is relatively simple. However, there have recently been some changes in terms of pension eligibility for the state pension scheme that people need to be aware of. From April 2020, the state pension age for women in the UK will be raise to 65, the same as for men. However, this will not affect women born on or before 5 April 1950, who can still claim their state pension at 60. Women born on or after 6 April 1955 will have a state pension age of 65.
For the state pension scheme, you will usually be sent a claims form roughly four months prior to reaching your state pension age. It is important to note that if you have not received this claims form by three months before your retirement age, you must contact the Pension Service and have a form sent to you. It may be that they do not have your most recent address on file.
To claim from the state pension scheme, it is important for you to be able to verify your identity. For example, you will be asked to provide official documents that support who you are and confirm your age to be able to file a pension claim and receive payments.
If you are eligible for additional state pension payments, such as the State Second Pension, then these payments will be automatically included in your state pension payments and there is no need to file separate paperwork for this.