Can well remember people having to queue at Post Office on pension day. One time, fifty years back, I happened to go into my local sub-post office one Tuesday morning. It was packed out with elderly people (money had been delayed in being delivered). Think I only went for a couple of stamps, with my two very young children. One gentleman was waiting alongside his very large, equally elderly, panting dog. My 3-year old loved animals, went over to ask if he could pat him, then turned round to me - and in that very clear, loud toddler voice, told me that the dog had an 'enormous penis'!!!! Fifty years ago, do not think that word was often used by the age group waiting in there.
My Dad, back in the 1980's, would go over the road from his home each week to collect his pension from the sub post office. Never did have any bank accounts etc. One time, when he was in his 80's, as he left he was stopped by a group of four teenagers demanding he passed over that money. My Dad, bless him, was old-school London East Ender. Not afraid of anything, told them to 'b.........r' off, and then (as he told me afterward on the 'phone - much to my dismay), he actually pulled out a flick knive that he evidently always carried. They all ran off. I told him to ring the police, but - maybe- not mention that knive!!!!
So, Yes, it was normal to queue for pensions. It is only, I think in very recent years that these have been paid by bank transfer.