Defer State Pension before the age 67/68 phase in.

BiturboV12

My birthday fall into the category we’re my state pension may be phased to age 67 then 68.  I’m 63 this year. If I was to defer right now say for two years, is it likely I will gaining two years more in my pot? 

xylophone

Defer State Pension before the age 67/68 phase in.
My birthday fall into the category we’re my state pension may be phased to age 67 then 68.  I’m 63 this year. If I was to defer right now say for two years, is it likely I will gaining two years more in my pot? 

You cannot defer your state pension until you reach SPA and choose not to claim it.

Have you obtained a state pension forecast?

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

BiturboV12

Thank you xylophone, that’s a bummer!  

p00hsticks

BiturboV12 said:

My birthday fall into the category we’re my state pension may be phased to age 67 then 68.  I’m 63 this year. If I was to defer right now say for two years, is it likely I will gaining two years more in my pot? 

I think you are being unecessarily pessimistic. 
Your state pension retirement age should currently be somewhere between 66 years and 66 years and 9 months, depending on exactly when in the year your birthday falls. 
State Pension age timetable - GOV.UK (www.gov.uk)

The gradual rise from 67 to 68 is currently only due to impact those born after April 5th 1970 (in other words, aged 53 or younger), and I'm not even sure that actually been legislated for yet. . 
Proposed new timetable for State Pension age increases - GOV.UK (www.gov.uk)

Although the timescale and rate of  these planned increases can - and indeed have more than once - been brought forward and accelerated, I think the government of the day has learned the lessons and will ensure that those impacted are given sufficient advance notice of such changes (a figure of ten years is often mentioned).

So those of us already over 60 are very unlikely to see any further changes from those already proposed. 

BiturboV12

Thank you p00hsticks. 

 Would you or anyone know the best strategy to boost the state pension pot by deferring strategy.  I’ll be 66 September 2027 so deferring for one year I think gives around an extra £600 for a year and if I defer I think around 5 years I can add approximately £5k?
I’m very inexperienced with the workings as you can tell so if anyone can please offer advice in layman’s terms I would be grateful.

luvchocolate

Approximately 4 months before your state pension is due to start you will receive a letter informing you can apply for it to be paid. 

To defer you simply don't apply. 

noitsnotme

BiturboV12 said:

Thank you p00hsticks. 

 Would you or anyone know the best strategy to boost the state pension pot by deferring strategy.  I’ll be 66 September 2027 so deferring for one year I think gives around an extra £600 for a year and if I defer I think around 5 years I can add approximately £5k?
I’m very inexperienced with the workings as you can tell so if anyone can please offer advice in layman’s terms I would be grateful.

If you defer it for a year for that extra £600, just make sure you live an extra 16 years or so to make sure you get back the years money you didn’t receive at the beginning.  There’s also the lost potential growth from investing that money if you didn’t defer it.  Someone can probably do more accurate calculations than me.

p00hsticks

BiturboV12 said:

 Would you or anyone know the best strategy to boost the state pension pot by deferring strategy. 

As noitsnotme points out you are not actually boosting the amount of money in your  (theoretical) state pension pot by deferring.

The deferral increase rate is designed to be actuarily neutral, with those deferring getting (on average) a slightly higher amount of money for a slightly shorter amount of time, but overall the same amount of money over their lifetimes. 

As with the state pension in general, those who live the longest benefit most, whereas those who die early lose out. 

Your best strategy to boost your state pension is to check you are achieving the most you can either by working, getting credits or making voluntary contributions.
Have you checked your state pension forecast to ensure that you are on course to get the maximum amount you can ? (£185.15 or higher) 

Check your State Pension forecast - GOV.UK (www.gov.uk)

BiturboV12

I’m will be getting the maximum. Thank you for the advice. 

Albermarle

so deferring for one year I think gives around an extra £600 for a year and if I defer I think around 5 years I can add approximately £5k?

Not sure how £600 a year ( which sounds about right ) for 5 years becomes £5,000 ? Although I have to say I am not an expert on SP deferral.

xylophone

You are currently employed?

Do you intend to continue working after SPA?