State Pension reform - additional sum from deferment

General_Grant

I've deferred taking my state pension but am thinking of applying for it to come into payment soon.

There will be the option of taking a lump sum or increasing the weekly pension.

I realise that there are proposals for a single tier pension but cannot see what will happen if I now opt for the additional pension rather than the lump sum. Would I in effect lose the benefit of the additional sum arising from deferment?

Thanks for any help.

luvchocolate

Hi, as far as I know you will not be affected by the new flat rate pension as this does not come into force until after you were entitled to your state pension....the fact you deferred makes no difference.
Some one more knowledgeable than me will be along soon, but Sundays are a bit quiet on here and wanted to give you a reply.

kidmugsy

luvchocolate wrote: »

but Sundays are a bit quiet on here and wanted to give you a reply.

Aye, it could just be Sundays. But maybe some people are holding back to see if dunstonh is reinstated.

cynicalgit_2

I believe your current status will remain unchanged.
AFAIK

The new arrangements are not scheduled untill 2016 or 2017.

jamesd

The proposed flat rate system only applies to those who reach state pension age from the time it takes effect. Since you have already reached state pension age you are not affected.

General_Grant

Thanks everyone.

I'm still undecided which to do (lump sum or extra pension) as I don't really need the lump sum right now but it's good to think that if I do go the way of the extra pension I won't be losing that benefit before I've recouped my "loss".

jamesd

For those in normal good health for their age the higher ongoing income is the best deal, assuming deferring was for up to three years for a man and up to five for a woman. Above that its necessary to pay much more attention to possible individual life expectancy and whether you're trying to provide safety net income for the case where you live a long life or not.