Are you eligible for extra state pension? Deferring claim for payment may increase amount


In the UK, there’s no longer a set retirement age. This means some may retire prior to state pension age, others at this age, while some may continue to work for some time longer.

For the new state pension, the Government adds: “The extra amount is paid with your State Pension and may be taxable.”

For both the basic and the new state pension, the amount of extra state pension a person gets depends on how long they defer claiming it.

“The longer you defer, the more you’ll get,” the Government adds.

For the new state pension, people who defer for at least nine weeks will get the increased amount.

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It will mean the state pension increases by one percent for every nine weeks put off claiming.

This works out at just under 5.8 percent for every full year deferred.

For the new state pension, the extra amount is paid with the regular state pension payment, once it’s been claimed.

“After you claim, the extra amount you get because you deferred will usually increase each year in line with inflation,” explains the Government.

However, people who claim certain benefits should note it could mean deferring the state pension will not increase its value.

As such, it is recommended people check whether this applies to them.

For people who have reached state pension age before April 6, 2016, the rules are different.

This refers to what is known as the basic state pension.

Those who follow the basic state pension rules and defer the payment can usually take the extra amount as either higher weekly payments or a one-off sum.

When they claim the deferred payment, they will get a letter asking how they would like to take the extra amount.

Upon receiving the letter, the person has three months to decide.

Higher weekly payments

The basic state pension increases for every week deferred, as long as it is deferred for at least five weeks.

It will increase by the equivalent of one percent for every five weeks deferred, working out at 10.4 percent for every 52 weeks.

The extra amount is then paid with the regular state pension payment.

Lump sum payment

It’s possible to get a one-off lump sum payment if the state pension is deferred for at least 12 months in a row.

“This will include interest of two percent above the Bank of England base rate,” the Government explains.

If a person is in prison, they should be aware they won’t build up extra state pension until they live prison.



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