Deferred state pension - update information

brewerdave

Claimed my deferred SP from 5th July. Phoned yesterday because I hadn't had my Choices letter to decide between extra SP and a lump sum. Was told my letter was in the post (arrived this morning!) The agent told me that they were working overtime to catch up with the backlog (the letter was dated Sunday!) but it looks like ~ 26 working days vs the aim of 15 working days after the date the SP starts.:)




.....and the calculated sums agreed with my calculations.:T

SeniorSam

The longer you can defer your State pension, the better off you will be as it grows very well indeed, so let it run as much as you can

Sam

drumtochty

Unless you die before you have made up for the years you deffered it.


That is my problem with it but if you do die before you get your monies worth, you will never know!!!!!!!!!!!!!

brewerdave

drumtochty wrote: »

Unless you die before you have made up for the years you deffered it.


That is my problem with it but if you do die before you get your monies worth, you will never know!!!!!!!!!!!!!

Yes, its a bit of a gamble - some on here would have you defer for x years based on the cohort life expectancy but I decided on 3.5 years as I'd be "in profit" before my 80th birthday:)

brewerdave

Further update for info.of others who might defer:-
Back calculated extra SP has arrived in my bank account this morning so about 3 weeks after the return of the Choices document. Also received letter showing that the increased SP will be paid from the next due payment date later this month.
So overall, about 11 weeks after the date I started to claim from, it'll all be sorted. Taxcode has also been altered and my spreadsheet shows that I should have been taxed the right amount by next April

p00hsticks

SeniorSam wrote: »

The longer you can defer your State pension, the better off you will be as it grows very well indeed, so let it run as much as you can

Sam

The fact that the OP has a choice between a lump sum and increased pension indicates that they reached State Pension age prior to the introduction of the new State Pension on 6th April 2016 when the rate of increase for those deferring was considerably higher than for those whose Pension age is after that date (and who also do not get the option of taking the money as a lump sum)