Do you have to apply for your state-pension or does it come automatic

SnowMan

oliveoil99 wrote: »

This deferring has got me intrigued, I can understand if your still working have a private income not needing your pension. How long can you carry on deferring and what happens if you popped your clogs during the deferring would all that pension go to your estate or would it be lost?

You can defer for as long as you want.

You used to be able to defer for only 5 years but they got rid of that restriction in April 2005.

If you die while while in the deferment period then the deferred instalments aren't paid to the estate as such. Broadly speaking for a single person most of the money is lost. For married people (or people in a civil partnership) then broadly the money is lost, although a surviving partner can get some extra future pension because of the deferral. The rules are complicated and set out in the state pension deferral guide.

For those reaching SPA after 6th April 2016 the deferral rules will be changing (assuming the proposals for a flat rate state pension are enacted).

oliveoil99

SnowMan wrote: »

You can defer for as long as you want.

You used to be able to defer for only 5 years but they got rid of that restriction in April 2005.

If you die while while in the deferment period then the deferred instalments aren't paid to the estate as such. Broadly speaking for a single person most of the money is lost. For married people (or people in a civil partnership) then broadly the money is lost, although a surviving partner can get some extra future pension because of the deferral. The rules are complicated and set out in the state pension deferral guide.

For those reaching SPA after 6th April 2016 the deferral rules will be changing (assuming the proposals for a flat rate state pension are enacted).

So you deffer taking a risk that your health will hold out in order to get more pension, certainly not for me got a bit of a headache to-day. lol

pukkamum

I used to work for the state pension service and I always advised against deferring, I had a chap who was insistent that he wanted to defer until I calculated that I order for him to get back the amount he had deferred he would have to live til 110, this was 10 yrs ago so yhings may have changed but I recommended that if he didn't need it yet he should save it all instead.

Mojisola

Martin's got a chart on here - https://www.moneysavingexpert.com/savings/state-pensions#delay - showing how long it takes before you start gaining from deferral.

xylophone

http://www.direct.gov.uk/prod_consum_dg/groups/dg_digitalassets/@dg/@en/@over50/documents/digitalasset/dg_200597.pdf
pages 26-40.

oliveoil99

Mojisola wrote: »

Martin's got a chart on here - www.moneysavingexpert.com/savings/state-pensions#delay - showing how long it takes before you start gaining from deferral.

Mentioned it can be a gamble so I prefer to grab it when I can and run, to many changes are happening so fast.

luvchocolate

I plan on deferring until I retire from work then I will not be paying tax on income, its a lot to read up on everyone needs to do whats right for them

kidmugsy

oliveoil99 wrote: »

Mentioned it can be a gamble

The decision is a gamble whether or not you take it the money now.

gadgetmind

pukkamum wrote: »

I used to work for the state pension service and I always advised against deferring,

Always? For someone using drawdown, deferring could work well as they could defer for (say) five years and then reduce drawdown in the year they took the lump sum and so pay zero tax that year.

Of course, lump sums won't be an option after 2016.

xylophone

Just a thought - is this lady not entitled to a state pension in her own right?
http://www.thisismoney.co.uk/money/pensions/article-2025686/Pensions-plight-forgotten-fiftysomething-married-women.html