Jar of money on the side with the word pension written above

Local independent financial adviser, Becky Hammonds of Willow Financial Solutions, looks at points people commonly overlook at retirement.

Firstly, it is vital to claim your pension just before you retire.

Many people assume they automatically get the State Pension once they reach retirement age, but that is not the case.

You have to claim it. Many people do not realise that and miss out as a result.

Roughly two months before you turn 66, the Pension Service should write to you, explaining what happens next.

It will send you an “invitation code” to activate your State Pension claim. That step is down to you, so you need to take action.

The quickest way is to activate it online. Otherwise phone the Pension Service on 0800 731 7898 to get a State Pension
claim form posted to you.

If you don’t do anything, you will not receive any State Pension.

Your first payment will usually be within five weeks of reaching State Pension age.

The good news is that you don’t actually lose any money if you fail to claim right away. So, there is no need to panic if you have forgotten or mislaid your State Pension invitation.

So long as you claim within 12 months of reaching retirement age, you can ask for backdated payments to when your entitlement started


Some pensioners don’t realise that they are taxed on their retirement income.

Yes, income from pensions is taxed like any other kind of income. You have a personal allowance which is currently £12,570 for 2022/23 tax year, where you pay no income tax, and then you pay 20 per cent income tax on everything from £12,571 to £50,270 before higher rate tax kicks in.

It is important to be aware of these points before you retire and plan accordingly.

For pensions and investment advice contact Becky Hammonds on 07969 269677 or email becky@willowfs.co.uk