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Delayed Basic State Pension & Top-Up Freeze

I understand the annual top-up of 10.4% is being frozen in the imminent budget. I don't quite understand how that will work and what exactly is affected by this freeze.
My pension was due Dec 2009 but I delayed claiming as I don't need it yet so I have only delayed claiming by 4 months so far.
Thank You

Comments

  • hugheskevi
    hugheskevi Posts: 4,615 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    BSP will increase by 2.5% this year, and the additional amount paid from deferral will not increase (0% uprating).

    The additional 10.4% you get from deferring is unaffected by any of that.

    So for example, a person entitled to £90 BSP who has defered it for one year, and had just claimed it would get £90 BSP, and a further 10.4% - £9.36. A total of £99.36.

    After uprating, the BSP would increase by 2.5% to £92.25, and the additional amount of £9.36 would be frozen at that rate. A total of £101.61.
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