Deferring state pension that has been taken?

bigfreddiel

I believe you can defer your state pension once if you have been taking it.

I also think if you can defer a state pension taken several years ago, seven to be precise, then it will increase by 1% every five weeks.

Is this correct and who does one contact to defer?

Once deffered how do you restart it, can you ask for a specific date?

Thanks all fj

McKneff

I wouldnt think so to be honest

You certainly cant change a private pension once it is started so as far as i know, state pension is exactly the sam,
#
Where did you get this from then,

kidmugsy

McKneff wrote: »

I wouldnt think so to be honest

You certainly cant change a private pension once it is started so as far as i know, state pension is exactly the sam,
#
Where did you get this from then,

No, no, he's quite right.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/372517/dwp024-102014.pdf

mgdavid

Yes you can defer the once even after starting to take it.
Pretty sure the seven years bit is wrong, AFAIK the 1% every 5 weeks applies to everyone on 'old SP' i.e who became eligible for it before nSP came in on 6th April just gone.

LXdaddy

Yes. The process of stopping taking your state pension and starting a period of deferral is called "de-retirement". You have to telephone DWP (contact details in the October 2014 booklet linked to in post #3) All you need is enough info to identify yourself and your NI number and the date that you want to de-retire.


You can only do this once after your start receiving your pension. Anyone who had a state pension date before April this year has the old rules so every week of deferral is worth 0.2% (provided you defer for a minimum of 5 weeks) After a year of de-retirement you have the option of taking a lump sum or extra pension.


We did this with my wife's pension late last year. She had initially deferred per pension when she reached her state pension age while she continued working for a year or so.


Very simple process.

bigfreddiel

Thanks LXdaddy, I was fairly certain I was right, now I need to convince my wife who hates anything to do with finance, pensions etc. She thinks that once deferred the rules will change and she will never get her state pension back.

I have one further advantage, she gets a lump sum of approx £7k from her tiny occupational pension that pays her £27/month, not index linked so has not increased in the last seven years, nor will it in future.

She will need to pay tax st 20% in the £7k because her total annual income is approx £12k. So she will lose about £1,400 of the £7k in tax.

I think I need to do a nice spreadsheet presentation show the two scenarios.

By deferring, using the £7k to 'pay' herself £500 every four weeks, she would effectively be exchanging the £27/month non index linked for £45 to £50/month index linked. And at the end of the day no extra tax.

She doesn't need the £7k, we both have sufficient investments and cash that it really makes no difference.

Yo me it's a no brainer, but I'm going to need to be awfully persuasive to convince her. If I could find an accountant to tell her it would be a done thing.

Cheers fj

uk1

Would it be helpful if your fellow posters here posted their opinion that your wife would be enjoying a bargain if she used her savings to live on and deferred her state pension? And that people on the "new scheme" might be envious?

I think she should defer!

Hope this helps!

Jeff

atush

Does she currently contribute to a DC pension? Could you convince her to put 2880 of that 7K into a DC pension, and the govt will make it 3600 instead?

If she is of good normal health, then really deferring for her is a no brainer.

Tell her to read this thread maybe? After editing out of yur posts anything you dont want her to see