State Pension Max

jamesd

A fairly small number would get to £250 without deferring. Much easier with deferring, since just three years deferral takes it from £190.55 to £250 a week. But I ignored that and the increase someone on £250 a week already could get by deferring...

atush

Although currently it is 30 years, I suspect the change forecast for 2016 will occur so plan for 35.

Yorksport

Thanks jamesd. That's a useful reminder for those in good health who can continue to work: for each year you delay claiming your state pension it increases by 10%. Presumably if the max is £250, no point delaying further once you reach that level. Just don't get run over by a bus before you start claiming! Just thought, it's only the basic pension which increases, not the serps part, so £250 might be unattainable.

jamesd

There is no cap on how much will be paid. Someone getting £250 a week could defer and get the same 10.4% a year increases.

The additional state pension is also increased by deferring (page 18), it's not just the basic state pension.

atush

Of course, under the new pension supposed to be coming in 2016, it will only be 5% for deferral? Not quite as good a deal.

jamesd

I don't think the deferral rate is known yet. If it is as low as 5%, it won't pay for a lot of pensioners and it'll probably be something to recommend against instead of for.

luvchocolate

James can I thank you for explaining it so clearly, your help is much appreciated

kidmugsy

jamesd wrote: »

I don't think the deferral rate is known yet.

The figure being discussed a few months ago was 5.2% (cf present 10.4%), but we'll presumably know when the Finance Bill is passed.