State Pension deferral

Helpme1982

Hi

I'm searching online to find out whether a person who reached their State pension age in 2013 and chose to defer their State pension can still take a lump sum after the rules change in April 2016. I can see lots of articles saying that anyone reaching SPA before the changes will still have the current rules applied, but I also see lots that say that taking a lump sum won't be possible after 6 April 2016 - but is this only for people who will get single tier pension?

Any guidance much appreciated, thanks.

greenglide

Anyone who has an SPa date before 6/4/2016 can defer under the old rules and can take the benefit as a lump sum if desired so the answer is yes.

However why do you want a lump sum? Generally speaking the increments on your pension are a significantly better deal.

You do know that all of the lump sum is taxable - there is no 25% tax free on this?

Helpme1982

Thanks for your help - can I ask where you got this information? I've trawled so many places and couldn't find a formal answer.

It's not for me I'm asking - I'd go with the improved weekly pension too!

greenglide

It is stated on the DWP information:_

Lump sum payment

You may choose to get a one-off lump sum payment if you put off claiming your State Pension for at least 12 months in a row. This will include interest of 2% above the Bank of England base rate.

Which is here - https://www.gov.uk/deferring-state-pension/what-you-may-get

More importantly the legislation of nSP did not change any part of deferral for the old rules. It will remain the same but, of course, future governments can change "anything" if they desire.