Taking up Deferred Pension

benz

For a healthy married man who reached 65 in 2015 and is a higher rate taxpayer, all things being equal, what is the optimum age to take the state pension?

Thanks
benz

JoeCrystal

benz wrote: »

For a healthy married man who reached 65 in 2015 and is a higher rate taxpayer, all things being equal, what is the optimum age to take the state pension?

Thanks
benz

Surely whenever a person stops earning employment income aka retiring.

Albermarle

For a healthy married man who reached 65 in 2015 and is a higher rate taxpayer, all things being equal, what is the optimum age to take the state pension?

It will depend on lots of factors, such as what other pension provision you might have , are you still working, how long will you be a 40% tax payer etc .
So not enough info for anyone to comment in detail.

Marcon

There really isn't one. Whenever you want to seems the answer.

benz

Albermarle wrote: »

It will depend on lots of factors, such as what other pension provision you might have , are you still working, how long will you be a 40% tax payer etc .

I've retired, taking a company final salary pension, paying 40% tax.

JoeCrystal

benz wrote: »

I've retired, taking a company final salary pension, paying 40% tax.

What a very nice problem to have, You might as well take the state pension right away then. I don't think you can save any taxes by deferring and I believe that the state pension is mostly lost as soon you die so... no point really.

Vortigern

benz wrote: »

For a healthy married man who reached 65 in 2015 and is a higher rate taxpayer, all things being equal, what is the optimum age to take the state pension?

You are deferring on the advantageous pre-2016 rate. You get a bigger pension by deferring but have less lifetime remaining to enjoy the benefits. Do you want the extra income when you're too old to enjoy it?

I believe you also have the option of taking the deferred payments as a lump sum rather than an increased pension. You might consider taking the lump sum and in the same tax year buying a VCT to reduce the tax impact.

kidmugsy

Will your wife inherit much of your extra state pension? (I calculate that my wife will inherit about 90% of mine.) If so, and if there's any chance of her being short of income as a widow, you might as well defer for a few more years.