We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
State Pension Deferral %
Theta101
Posts: 140 Forumite
Is the annual deferral percentage increase of 5.8% applied constantly on the starting pension amount or on what the pension would have been without deferring?
Put another way:
If the non deferred SP goes up at 2% per year does the deferred SP go up at the rate of 2% plus 5.8%?
If not then the non deferred SP could catch up (over take) the deferred SP.
Put another way:
If the non deferred SP goes up at 2% per year does the deferred SP go up at the rate of 2% plus 5.8%?
If not then the non deferred SP could catch up (over take) the deferred SP.
0
Comments
-
It's applied when you start taking your state pension as a simple % upgrade (not compounded) to then current base value. So if you deferred for 2 years until 2018 when the base pension may be £170/week you would get approximately 170*(1+2*0.058)=£189.72. Thats only approximate as I believe it is calculated on a weekly basis. Note that the extra bit is only CPI linked and is not subject to the triple lock so will reduce over time as a fraction of the base pension.0
-
Linton, thanks VERY much
You've simplified my spreadsheet calculations!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.2K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards