Backdated Pension Payment

bk220

How is a backdated basic state pension paid? For example, if I backdate 12 months, would I get it all in one payment?

Dazed_and_confused

What do you mean by backdated??

Did you forget to claim?

Have you paid extra NI to add years?

Did you defer it?

bk220

Dazed_and_confused wrote: »

What do you mean by backdated??

Did you forget to claim?

Have you paid extra NI to add years?

Did you defer it?

On the pension claim form, it asks when I want the claim to start. I can backdate a maximum of twelve months. I was curious about how this twelve month period is paid.

xylophone

When did/do you reach state pension age?

GibbsRule_No3

It sounds like they are trying to decide what to do, so maybe coming up to retirement, rather than already retired.

bk220

xylophone wrote: »

When did/do you reach state pension age?

In 2015. I decided not to claim and continued to work, until now.

xylophone

If you reached SPA and did not claim then your SP was automatically deferred.

You reached SPA under the old State Pension Scheme.

For a comprehensive explanation see

https://www.litrg.org.uk/tax-guides/pensioners/what-tax-do-i-pay-my-state-pension-lump-sum

https://www.gov.uk/deferring-state-pension/how-to-claim-a-deferred-state-pension

Dazed_and_confused

If you take the deferred lump sum and are thinking about the potential tax implications then don't forget to include the weekly/4 weekly State Pension you will be getting from now on when working out your taxable income in the current tax year.

badmemory

It may be far more beneficial for you to take the increased pension. For example, take it on your birthday in 2019 would give your state pension a little over 40% uplift. The amount given as a lump sum may very well be taxed much higher than you currently normally pay.