People reaching State Pension age urged to check for extra pay - what to do

Brits who work beyond their State Pension age could be entitled to a pay boost. You may not be aware but you no longer have to pay towards National Insurance once you reach this age.

This means your net income could immediately go up. As reported by the Daily Record, nearly 13 million people across Great Britain are of State Pension age and receiving weekly payments of up to £230.25 each week.

Upon reaching the official retirement age - currently 66 but set to increase to 67 between 2026 and 2028 - people can choose to retire and claim their State Pension, defer it, or continue working while also claiming it. If you're considering claiming while still employed, bear in mind that the Personal Allowance is frozen at £12,570 until April 2028, and any income above this threshold will be taxed.

Deferring can enhance annual State Pension payments by over £600 each year. However, many older workers might not know that from the age of 66, they are not required to pay National Insurance Contributions (NICs) through their salary.

This potential pay boost isn't automatic and needs to be communicated to your employer. Assistance can also be sought from HM Revenue and Customs (HMRC).

If you've already reached State Pension age and are still paying NICs, you can claim this money back.

Guidance on GOV.UK outlines how the process of removing NICs from your pay works if you're an employee or self-employed.

It states: "If you're 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.

"You 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're allowed before you pay tax)."

How to stop National Insurance payments

The guidance explains that if you carry on working, you must provide your employer with evidence of your age to ensure National Insurance deductions stop - a birth certificate or passport will suffice.

Nevertheless, if you prefer not to show your employer your birth certificate or passport, HMRC can provide you with a letter for this purpose instead.

The correspondence will verify:

• You have reached State Pension age
• You are no longer required to pay National Insurance

It's crucial to understand that you must write to HMRC outlining why you would rather not show your employer your birth certificate or passport.

HMRC will request you submit your birth certificate or passport for verification if they lack a record of your birth date - certified copies are acceptable.

Complete information on how to cease National Insurance payments from 66 and tax relief available for those over State Pension age can be accessed on GOV.UK here.