Delay state pension

Pensioner2023

I have been told that if I delay claiming my state pension for a minimum of 9 weeks it will be increased by 1%.. 
Is this accurate?
And is it counted from  your 66th birthday?

p00hsticks

Yes to both.

You can read up on how it works here

https://www.gov.uk/deferring-state-pension

Notepad_Phil

Pensioner2023 said:
...

And is it counted from  your 66th birthday?

Yes, if the 2023 in your username means that you become a pensioner next year. Possibly not, if it doesn't. My state pension won't start until I'm 67, so for me it would count from my 67th birthday.

Stubod

..to me, and assuming you have the equivalent in "spare" cash and no major health issuse, it's a no brainer to defer your SP by 2 years? It's what I am planning to do if nothing changes.  

Silvertabby

Thought about it, but will be taking my pension later this year (66).

Yes, £185.15 plus 11% would be £205.52, but at a loss of £19,318.56.  That's a break even point of about 18 years.

I've already done the 'no brainer' bit by buying 4 years of voluntary Class 3s to take me up to the maximum single tier rate .  Even as a basic rate taxpayer in retirement, that is a break even point of less than 4 years.

Notepad_Phil

Silvertabby said:

Thought about it, but will be taking my pension later this year (66).
...
I've already done the 'no brainer' bit by buying 4 years of voluntary Class 3s to take me up to the maximum single tier rate ...

It's not the slam dunk decision that it used to be, but I'm still planning that we'll defer Mrs Notepad's pension for a couple of years or so when she gets to 67. She is in the lucky position of having a small council DB pension, so a little boost to the state pension will up the 'risk free' income that she can count on when I'm no longer around (hopefully a long time yet). Though we might not have come to that decision if she had been in poorer health or her mother not still been in relatively good health in her late nineties.

The one decision we've yet to make is when to pay the final voluntary NI payment for Mrs Notepad as she is less than £1 away from the max. I did at one time consider leaving it to let the deferring do this for her, but as things stand she'd lose more pension then it would cost for the voluntary payment.

Audaxer

Silvertabby said:

Thought about it, but will be taking my pension later this year (66).

Yes, £185.15 plus 11% would be £205.52, but at a loss of £19,318.56.  That's a break even point of about 18 years.

I've already done the 'no brainer' bit by buying 4 years of voluntary Class 3s to take me up to the maximum single tier rate .  Even as a basic rate taxpayer in retirement, that is a break even point of less than 4 years.

@Silvertabby, if you are a basic rate tax payer, I would have thought your net loss for 2 years SP deferral would be 20% less than £19,318.56?

Silvertabby

Audaxer said:

Silvertabby said:

Thought about it, but will be taking my pension later this year (66).

Yes, £185.15 plus 11% would be £205.52, but at a loss of £19,318.56.  That's a break even point of about 18 years.

I've already done the 'no brainer' bit by buying 4 years of voluntary Class 3s to take me up to the maximum single tier rate .  Even as a basic rate taxpayer in retirement, that is a break even point of less than 4 years.

@Silvertabby, if you are a basic rate tax payer, I would have thought your net loss for 2 years SP deferral would be 20% less than £19,318.56?

Good point, but still not worth doing (in my case).  May be different for others, depending on their circumstances/when they intend to stop work/other pensions.  In my case, I retired at 60 and the State pension is secondary to my public sector db pensions - so going to enjoy spending it now!

Pensioner2023

I would only be deferring for a few months...physical job...not sure I will manage any longer!!
Are you able to calculate any figures for me please?

Say I was to defer for the 9 weeks or what would be the next logical time block?
Really grateful for this info as I just cant get my head round all this!
Cant actually believe I am this old!!😂😂

Audaxer

Pensioner2023 said:

I would only be deferring for a few months...physical job...not sure I will manage any longer!!
Are you able to calculate any figures for me please?

Say I was to defer for the 9 weeks or what would be the next logical time block?
Really grateful for this info as I just cant get my head round all this!
Cant actually believe I am this old!!😂😂

It increases 1% every 9 weeks of deferment. If you defer for a year it increases by 5.8%.