Defered Old Age Pension

mickg_4

Is there any truth in the statement below and where can I get more info on it ??

There's no need to rush to claim your state pension.

It's rare to come across any good news on the pensions front these days but this week there is some - and what's more it's related to the state pension.
If you don't need to collect your state pension the second you hit retirement age you can now defer its payment.
Why, you might wonder, would you want to do that?
For the very good reason that for every five weeks you defer by your weekly payout rises by one per cent.
That's equivalent to getting over 10 per cent more for every year that you defer.

Lump sum
And if you defer for more than a year there's even better news: you can take the amount that you have foregone as one lump sum paid with interest set at two per cent above the Bank of England's base interest rate.
So if you go without your pension for one year you'll have two choices: you can either take a lump sum of £5646 and get a state pension of £105 a week or you can opt for no lump sum and a state pension of £110.90 a week.
Either way you'll find you have made a better risk-free return than you will get anywhere else in the market these days.

mick

sleepless_saver

Here is a link to the definitive information about this on the Pension Service website. This has been discussed previously in these forums as there are pros and cons to deferring - worth doing a search.