deferred state pension

jackyann

Hello, asking for some general advice please.

I reached State Pension Age 3 years ago, and deferred. As I understand gov.uk, I still get an increase of 1% for every 5 weeks of deferral (the rule about 1% per 9 weeks applies to those who reached pension age after April 2016)
Gov.uk gives no indicator as to a limit on deferral. At present my income is good and my health is good so I am inclined to leave it. Rough calculation is that if I claim now I would have a 30% increase. I am not inclined to take the lump sum given current rates of interest.

I just wondered if anyone on here had any ideas about the best time to claim, or any other thoughts.

Thanks.

pafpcg

Three years is likely nowhere near long enough to gain the maximum benefit!
(I'm assuming from your name that you're female.)

There's a discussion on how to estimate the optimum deferral length here (post #4 and then #8 onwards):

https://forums.moneysavingexpert.com/discussion/5515463

jackyann

Thanks - I did a forum search but nothing came up. That discussion is , and I'll look at the links.

badmemory

Even when interest rates were better taking a lump sum was not the best option (unless life expectancy has become a problem). Full 3 years actually 31.2%. I deferred for 5 years (so declare an interest here!). Which actually turned out to be 5yrs & one week so 52.2%, almost best financial decision I ever made. The worst, whilst I am female my co retirement age was 65. Unfortunately, I did not take that DC pension at 65 and 6 months later annuity rates fell through the floor. You win some you lose some!

BaeneyR

Anyone now how to activate a deferred state pension. I am pretty sure that I deferred online and expected to activate in the same way.

Linton

BaeneyR wrote: »

Anyone now how to activate a deferred state pension. I am pretty sure that I deferred online and expected to activate in the same way.

#

You activate a deferred state pension simply by claiming it in the standard way - see here.

mjmal51

BaeneyR wrote: »

Anyone now how to activate a deferred state pension. I am pretty sure that I deferred online and expected to activate in the same way.

Recently requested mine to start in April and did it by phone. That is the only way to request weekly payments rather than 4 weeks in arrears. Even then they do not offer it, you have to ask for it. Weekly payments are not available when using the online request.
Very easy to use the Freephone option.