Lump sum from deferring state pension after 6 April 2016

jamesd

Those who reach their state pension age from 6 April 2016 aren't able to defer then take all of the deferred amount as a lump sum. What they can do is not claim for up to a year and then have their claim backdated to when they reached state pension age. No more than a year. They can then resume deferring to eventually get higher state pension income.

This is a potential way to save income tax in the last year of work, shifting the income into the next tax year when it may be taxed at 20% or 0% instead of 45%, 40% or 20%.

One for the tweaks toolbox.

xylophone

What they can do is not claim for up to a year and then have their claim backdated to when they reached state pension age.

https://www.thisismoney.co.uk/money/pensions/article-7399265/My-husband-deferred-state-pension-refused-lump-sum.html