State pension deferral

It is not necessary to claim the state pension as soon as the state pension age is reached. 

By not making a claim, deferring, for a period of at least 9 weeks the pension received will be increased by 1% for each 9 weeks deferred which is just under 5.8% per annum.

An example

Let’s look at someone who receives less than the full State Pension, e.g. £130 per week.

This means your State Pension will be £6,760 a year.

By deferring for a year, you will receive an additional £390 (just under 5.8% of £6,760). The same pension would increase from £130 pw to £155 pw if it were deferred for 5 years.

After you claim, the extra amount you receive because of the deferral will usually increase each year.

While the pension is being deferred by £130pw, the loss for the year will be £6,760. So it will be necessary to live for a good few years before the loss of the pension income is recouped from the additional amounts. 

Reasons why some people defer?

They already have adequate retirement income and are happy for the entitlement to grow.

There are tax planning reasons (for example a capital gain may be envisaged in the first year the pension is due to be received).

What is the state pension entitlement?

A state pension forecast can be requested by visiting, or by calling the forecasting team on 0845 3000 168 (textphone 0845 3000 169).

Deferral contact details

Call: 0845 60 60 265 (Welsh – speakers living in Wales: 0845 60 60 275)
Textphone: 0845 60 60 285 (Welsh textphone: 0845 60 60 295)

These calls are free from BT land lines. Calls from mobile phones may be charged at premium rates. A request may be made for the operator to call back.