Remortgaging to make pension contributions

CookieMonster

[Deleted User] said:

Depending on circumstance/pension value I might choose to defer state pension for a couple of years, but that's a way off at this point.

I did some rough sums on State Pension deferral recently:
900 weeks to break even on the amount lost by deferring (be it the 9 week minimum, or 1 year). 17 years, roughly.

Perhaps my sums are out, I've not checked elsewhere on this forum (as it's a way off for me also).

Albermarle

CookieMonster said:

[Deleted User] said:

Depending on circumstance/pension value I might choose to defer state pension for a couple of years, but that's a way off at this point.

I did some rough sums on State Pension deferral recently:
900 weeks to break even on the amount lost by deferring (be it the 9 week minimum, or 1 year). 17 years, roughly.

Perhaps my sums are out, I've not checked elsewhere on this forum (as it's a way off for me also).

I think it is not a great bargain/no brainer thing to do , as your calculations suggest .
However it is sometimes suggested as part of an overall withdrawal income strategy . If you fund the deferred years from investments/DC pension , you are effectively swopping risk assets for guaranteed income at a better rate than buying an annuity.
I think that is why it is suggested anyway .