Delaying State Pension

kidmugsy

MK62 said:

Stubod said:

..ta for the link to the calculator, very interesting...seems to suggest for me it is not worth deferring, or at best only for 1 year....

... it's all an estimation based on certain assumptions (which may well all turn out to be totally wrong).

That's true of every insurance you buy, isn't it?

nigelbb

uk1 said:

nigelbb said:

uk1 said:

Johnnyy_Boy said:

I am 67 in a couple on months and have delayed my pension for a year. Currently still working and may continue for another year. A 40% tax payer.

if I carry on working, am I better off not claiming for it and leaving another year ? 

Hi,

Unless things have changed since I deferred and investigated you might consider if you can taking your pension after 6th April as there might be a slight advantage.  I called that at the time “a hot spot” I had this thought several years ago and during the lengthy process when both the DWP and Pensions advisory service didnt agree with me but after some lengthy debates did.  They realised that their own deferment spreadsheets had been wrong and changed them. 

As I say things may be different now but if you want to read the full monty here is a link.  

https://forums.moneysavingexpert.com/discussion/5418521/deferred-pension-hot-spot/p1

All  best with your plans and retirement.

Jeff

Things are very different now. Your thread refers to deferring a pre-2016  pension  when the accrual rate was 10.4% for each year deferred rather than the 5.8% available now. There is also no SERPS/SP2 to consider for all those entitled to a pension since April 2016.

Thanks. Yes, I know the rate has changed. 

I don’t want to rerun the thread I highlighted.  What has changed specifically  that renders the choice of month of triggering now incorrect?

Thanks.

Jeff

As I am a post-2016 pensioner & this doesn't affect me I have only skimmed through that thread but I saw there was a calculation based on a separation of Basic State Pension & Additional State Pension with different rates of increase & that a wrong assumption had been made about applying a flat rate of increase to both components. With the new Single Tier Pension there are no longer two components just as the name implies a single tier.

uk1

nigelbb said:

uk1 said:

nigelbb said:

uk1 said:

Johnnyy_Boy said:

I am 67 in a couple on months and have delayed my pension for a year. Currently still working and may continue for another year. A 40% tax payer.

if I carry on working, am I better off not claiming for it and leaving another year ? 

Hi,

Unless things have changed since I deferred and investigated you might consider if you can taking your pension after 6th April as there might be a slight advantage.  I called that at the time “a hot spot” I had this thought several years ago and during the lengthy process when both the DWP and Pensions advisory service didnt agree with me but after some lengthy debates did.  They realised that their own deferment spreadsheets had been wrong and changed them. 

As I say things may be different now but if you want to read the full monty here is a link.  

https://forums.moneysavingexpert.com/discussion/5418521/deferred-pension-hot-spot/p1

All  best with your plans and retirement.

Jeff

Things are very different now. Your thread refers to deferring a pre-2016  pension  when the accrual rate was 10.4% for each year deferred rather than the 5.8% available now. There is also no SERPS/SP2 to consider for all those entitled to a pension since April 2016.

Thanks. Yes, I know the rate has changed. 

I don’t want to rerun the thread I highlighted.  What has changed specifically  that renders the choice of month of triggering now incorrect?

Thanks.

Jeff

As I am a post-2016 pensioner & this doesn't affect me I have only skimmed through that thread but I saw there was a calculation based on a separation of Basic State Pension & Additional State Pension with different rates of increase & that a wrong assumption had been made about applying a flat rate of increase to both components. With the new Single Tier Pension there are no longer two components just as the name implies a single tier.

Yes,  and your posts have absolutely nothing to do with the suggestion I made.

Let’s stop.

MK62

kidmugsy said:

MK62 said:

Stubod said:

..ta for the link to the calculator, very interesting...seems to suggest for me it is not worth deferring, or at best only for 1 year....

... it's all an estimation based on certain assumptions (which may well all turn out to be totally wrong).

That's true of every insurance you buy, isn't it?

Probably....I was simply making the point that the calculator can't really tell you if deferring is worthwhile or not, as it doesn't have the information it needs to do that.....all it can tell you is whether it's worthwhile or not "using these assumptions".......and as those assumptions might well be wrong (and most likely will be), then the answer the calculator gives, will most likely be wrong too......