Deferred State Pension Lump Sum Payments

Northern_Dad

Well if it's goes up at about 5% per year from £203.85 next week is how I arrived at my estimate of getting around £300 pw if I have deferred for about 5 1/2 years.

I am just sorting out missed NI payments (see my other thread), but once I have paid that i should be on a full State Pension.

t0rt0ise

You'll only get the full pension from the date you pay the extra NI. So it's going to be complicated to work out how much you're going to get as I can't imagine that they will uprate the full amount that you weren't entitled to for the past three years.

xylophone

Had you considered taking the state pension as soon as possible and using it to increase your monthly mortgage payments?

Or taking it and using it to contribute to  your private pension with a view to using the PCLS when you retire to help pay off the mortgage?

Remember the tax relief on contributions to your private pension.

eastcorkram

@Northern_Dad

Have you worked out what age you'd have to live to, in order to get back the five years of pension you didn't get?

Dazed_and_C0nfused

Northern_Dad said:

When you defer your State Pension and take a Lump Sum, what rate do they use to calculate the annual amount?

Is it the rate that applied in each year in question?

Or is the whole lot paid at the LATEST rate?

Come November I will have already deffered for 3 years, but plan to wait a further 2, as I am still working.

Also, presumably it would be best to wait until AFTER the end of that Tax Year to get the best rate, AND to reduce the amount of Income Tax deducted (which I understand will be at 20% on the amount over my Personal Allowance)

Hope someone can advise, as HMRC don't seem to post these kinds of details (and Advisors on the phone don't seem to know) !

You cannot have a deferred lump sum in the normal sense.

That only applies to people who reached SPA by 5 April 2016.

Your "lump sum" can only be the result of you backdating a claim for State Pension by a year.  There are no special tax rules for this, it's simply extra pension income.