State pension deferral

evergreen

I will become eligible for my state pension later this year and am considering deferring it as I have seen mentioned on here many times. However I have a couple of questions I would appreciate help with:
1. If I die while deferring state pension, is that money transferable to my husband?
2. Do I have to decide on additional pension or lump sum from the pension at the time I defer or when I start taking my pension?

Thanks in advance

brewerdave

1. Your husband may qualify for extra SP if you die whilst deferred.
See Govt leaflet on deferring :- https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/372517/dwp024-102014.pdf

2. You only have to make the choice when you finally claim your SP -I believe you have 3 months after claiming to decide.

kidmugsy

evergreen wrote: »

1. If I die while deferring state pension, is that money transferable to my husband?

Check the detail in the link given by brewerdave, but your widower should expect to inherit all the part of your Extra Pension that corresponds to your Basic Pension, and around 50% of the part corresponding to your Additional Pension.

In the case of my widow, I reckon she'll inherit about 90% of my Extra Pension bought by deferral. If I'd spent less time in my career "contracted out" of SERPS/S2P, the figure would be less than 90%. But obviously it would always be bigger than 50%.

jamesd

Yes, your husband won't lose out. You decide at the end.