State Pension Deferal

castle96

Hi,
can I defer for anything other than whole years, ie I dont 'need' it now, but would do in say 7.5 mths time ?
I gain 5.2% 'interest; on the defered amount by doing this - yes ?
They would send a lump sum when I take it and this would count towards earnings (still working) for the year, and be taxed, I assume.

thanks

xylophone

You become eligible for SP after 6 4 16?

http://www.which.co.uk/money/pensions-and-retirement/state-pension/guides/your-state-pension-and-benefits/how-much-state-pension-will-i-get

You can defer your pension for as long as you want,

You can delay taking your state pension and receive it as lump sum, but you'll have to defer for at least a year in order to get the lump sum payment. For those qualifying for the state pension on or after 6 April 2016, this option disappears.

badmemory

To add to what xylophone has said, check carefully which is your best option between extra pension & lump sum. Extra pension usually wins but it depends on your circumstances.

mgdavid

badmemory wrote: »

To add to what xylophone has said, check carefully which is your best option between extra pension & lump sum. Extra pension usually wins but it depends on your circumstances.

UNsure why you added this; lump sum is not an option for the OP, for two reasons.

badmemory

mgdavid wrote: »

UNsure why you added this; lump sum is not an option for the OP, for two reasons.

I added that because the OP mentioned the lump sum and the 7.5 months may have become a year. Yes a bit belt & braces but peoples plans do change.

luvchocolate

There is no lump sum option on the new state pension

p00hsticks

mgdavid wrote: »

UNsure why you added this; lump sum is not an option for the OP, for two reasons.

Only one for definite (that they need to defer for at least a year in order to get a lump sum),

The OP hasn't said whether they have already reached State Pension Age or not, and if they have, whether it was prior to April 2016 or not.

If they reached state pension age prior to April 2016 they it would still be possible for them to elect to defer their current pension going forward and later take any deferred value as a lump sum (providing they defer for at least a year).

xylophone

In my post 2 above, I asked the OP to check his date of eligibility for SP and gave a link which explains the rules for "old" and "new " pension deferral.

I also drew attention to the relevant information from the link, ie that the SP can be deferred for as long as desired, that to get a lump sum requires at least a year but that the lump sum option is not available for those who become eligible for SP on or after 6 4 16.

castle96

Thanks. Retiring now. Ok so no lump sum but still not sure re de
feral. Have read link.i can defer now and then take at ANY time ?? Not just whole number of years? If no lump sum, then is pension increasd by 5.8% x N mths?

xylophone

http://www.telegraph.co.uk/pensions-retirement/financial-planning/state-pensiontake-it-now-ordefer--for-more/

The above will be worth a read (but comment on inherited pension is too simplistic) - see https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf



See also

https://www.gov.uk/deferring-state-pension/how-it-works

p00hsticks

castle96 wrote: »

feral. Have read link.i can defer now and then take at ANY time ??

Yes, any time

castle96 wrote: »

If no lump sum, then is pension increasd by 5.8% x N mths?

No - 5.8% is the annual equivalent. Your pension amount is increased by 1% for every 9 weeks you defer.