deferred state pension

pinnks

No, you cannot gain from deferring a frozen pension.  The amount will be based on the amount you would have got at pension age, plus the extra for deferring but no annual increases on top of that.

Madpension

I have deferred my pension by 18 months.  This morning I phoned DWP and asked to start my pension.  I was told that if I started it from today then I would get the full £230 as one pension and a second pension (deferral money) that increases by 1% a year until the money runs out, but the deferral increase is not added to my state pension (unlike how it is portrayed on the pension deferral page on .gov..)  Second option I claim my pension from a year ago and the deferral will be added and payed as one, BUT my pension as I claimed it from last year would be £219, this makes no sense as I will, until I die, be on a sum that is a year out.....and the deferral in real terms will be worth less than the sum I am losing by claiming from last year..  Nobody talks about the date you claim from in this situation and the effect it has.  I ended up on this claiming from August 2024; but then this seems daft, lower pension by a year and ? loss of a year of the deferral.  Just how can I get the 18 months deferral onto my pension and start my pension today at the current value of £230 + the deferral and not £219. Please help before I go back to the DWP.

jem16

Madpension said:

I have deferred my pension by 18 months.  This morning I phoned DWP and asked to start my pension.  I was told that if I started it from today then I would get the full £230 as one pension and a second pension (deferral money) that increases by 1% a year until the money runs out, but the deferral increase is not added to my state pension (unlike how it is portrayed on the pension deferral page on .gov..)  Second option I claim my pension from a year ago and the deferral will be added and payed as one, BUT my pension as I claimed it from last year would be £219, this makes no sense as I will, until I die, be on a sum that is a year out.....and the deferral in real terms will be worth less than the sum I am losing by claiming from last year..  Nobody talks about the date you claim from in this situation and the effect it has.  I ended up on this claiming from August 2024; but then this seems daft, lower pension by a year and ? loss of a year of the deferral.  Just how can I get the 18 months deferral onto my pension and start my pension today at the current value of £230 + the deferral and not £219. Please help before I go back to the DWP.

I think something has been lost in translation somewhere or you have misunderstood what you’ve been told. 

You have the choice of two options. 

1. Backdate your claim up to 12 months so from August 2024 to April 2025 you will be paid at the rate in force during that time which was £221.20pw. Then from April 2025 to now you would be paid at the rate of £230.25pw. This assumes you’re entitled to the full new state pension. Your ongoing pension will be £230.25pw plus the deferral rate for 6 months. It will be paid as one payment. Each year your full nSP will increase by the Triple Lock and the deferred part will increase by CPI as per the rules.

2. Start your pension from now. You take the whole lot as an increased state pension with a deferral rate for 18 months. Again it’s paid as one amount and increases as Option 1. The deferral money doesn’t run out.

Many people choose to take Option 1 as they get a lump sum and it doesn’t take 14 to 17 years to recoup what they gave up when they deferred. Tax of course may be applicable on the 12 month backdated part. 

1957DfurdPensionist

For those who intend to top up prior to a deferred claim, and may indeed be waiting for the proverbial call back, may I just add a word of caution, or at least a recommendation to check, on the effect of having deferred both the pension claim, and having deferred or delayed or suffered delay in paying VCs prior to claiming?