State Pension increase 2016/17

evergreen

I deferred my pension in September last year. I expect to start taking it next September.

kidmugsy

evergreen wrote: »

So does that mean if I have deferred state pension, my basic state pension will go up by 2.9% as well as the 10.4% increase for defferring, but the additional state pension goes up by 10.4%?

When you start your pension later this year you'll get extra pension, which has two parts. The part corresponding to basic pension will have gone up by both the 2.9% and the 10.4%, while the part corresponding to additional pension will have gone up by the 10.4% alone.

This is all absurdly extravagant of the taxpayer so those of us benefitting from it should avoid being triumphalist.

evergreen

Thanks, I understand it now. I agree it is extravagant if we live long enough, which is why I assumed the government have changed it for people retiring from April, along with all the other pension changes.

LXdaddy

evergreen wrote: »

Thanks, I understand it now. I agree it is extravagant if we live long enough, which is why I assumed the government have changed it for people retiring from April, along with all the other pension changes.

They did change it with effect from April 2016. The increase for deferring has been almost halved - 1% per 9 weeks rather than 1% per 5 weeks.


But the good news for you (and me) is that applies to people whose state pension becomes payable AFTER April 5th 2016. Those of us with normal retirement dates prior to April 2016 are still subject to the old schemes - so we get 10.4% extra pension for each year we defer.