Is extra pension from NSP deferral inheritable?

greenglide

I had always assumed that the increments (no longer called increments!) you get for deferring under NSP rules would be inheritable on death in the same way as they are for current deferrals and the upcoming class 3a increments.

However I am being led to believe this is not the case. 5% increments for deferring when not inheritable isn't brilliant and you cannot take it as a lump sum either.

atush

current deferrals can be taken as LS so I would assume it is now, but have no idea after the SP comes in as you cannot take a LS.

SeekTruth

See quote below from https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181229/single-tier-pension.pdf

Currently, it is possible to inherit a deferral reward from a deceased spouse or civil partner. It will
not be possible to inherit a deferral reward on a single-tier pension.

greenglide

That is what I am led to believe as well.

It makes another dent in the "defer state pension" movement doesn't it.

I wonder how many people realise this!

My SPa date is in May 2016 so deferring is looking like a poor deal. Not a huge issue for me - I was considering deferring for six months or so and can ramp up AVC payments by salary sacrifice during the final six months instead to "recycle" the State Pension during this period instead.

The Single Tier Pension has much to answer for