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Deferring state pension

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I qualify for my state pension end Jan 2016. I will be 63 in Feb 2016 (female). In the budget, it was announced that the new universal pension will start in Apr 2016 so of course I will miss out on it. I will never qualify for pension credit as my reduced NHS pension will place me just above the limit. I am wondering if it would be advantagous to defer my state pension? Would I get the new universal rate if I did defer? How long would I have to defer it for? Could it just be a few months or is there a minimum time? I could make provision for a few months but not much longer.
:smileyhea A SMILE COSTS ABSOLUTELY NOTHING

Comments

  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Eligibility for the new rate depends on when you reach state pension age. Deferring has no effect on that.
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    But if you did defer (and deferment rules will change in apr 2016 too) you would uplift your pension by 10.2% or so for each full year deferred.

    So, have you done a SP pension forecast? What is your amt? multiply it by 1.10 and see what comes up?
  • irishjohn
    irishjohn Posts: 1,349 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Hi Katie
    If you started work back in the early 70s you may have paid graduated pension - it was the additional state pension scheme in place back then before employees with pension schemes for their job were invited to "contract out" - if you paid into this scheme back then it will be sitting waiting on your records and you will receive an enhanced pension as a result - so you may not lose out that much by reaching pension age 3 months before the new scheme is introduced. Go to the pensions website and fill in your details and you will get a forecast of what you will be paid. I think they quote a pension figure as if you were getting it today so the basic pension and additional payments from graduated pension may come close to the £140 that is being mooted as the new universal pension.

    Have you enough years NI contributions for a full pension? You will need 30 years for the current pension rules, but the new scheme requires 35 years - if you fall short of the 30 you have the chance to buy some additional years NI contributions to benefit your pension.
    John
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