Half don't know they can boost state pensions by £528 a year by deferring

11 May 2020

Millions unaware state pension deferrals can boost income


Almost half (47%) of 55 to 64-year olds do not know that deferring their state pension will increase these payments when they start to claim, according to new research from Just Group.

Putting off the age you claim the state pension means the amount you get can go up significantly. This can be a useful future income boost for those that do not need to draw this money as soon as they retire.

Just Group found that only 12% of people aged 65 and over had deferred their state pension. Women are slightly more likely to defer than men, with 12% aged over 65 doing so, compared to only 9% of men.

With the new full state pension rising to £175.20 this April, deferring for one year would result in a boost of £10.16 a week, a total of £528.32.

Roughly one million people are receiving a state pension boost as a result of deferring, 25% fewer than the peak in 2004, according to the Department for Work and Pensions.

What is deferring the state pension?

The state pension is not paid automatically, and you will have to make a claim to start receiving payments once you reach pension age.

It is possible to delay when you start receiving your state pension income, known as deferring.

How much could I get for deferring my state pension?

For those who reach state pension age on or after 6th April 2016, every nine weeks of deferral boosts pension income by 1%.

That works out to just under 5.8% more income for every 52 weeks of deferral.

How do I defer my state pension?

You should receive a letter two months before you reach state pension age, giving you more details about what you can claim.

If you wish to defer your state pension, you do not need to take any action. Your pension will be deferred until you decide to claim it.

It is also possible to defer your state pension payments after you start claiming. You need to get in contact with the Pension Service on 0800 731 0469.

Keep in mind that this can only be done once during your retirement.

Should I defer my state pension?

Deferring the state pension could be an option if you are in good health and have sufficient income coming in from other sources.

This could be from another pension, or because you have continued to work.

Stephen Lowe, group communications director at Just Group, says: “Deferring state pension is an important option for the rising number of over-65s in good health and who plan to carry on working."

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