To defer State Pension or not ?

AngelHess

why not postpone if you can still work and love your job? You will only benefit from this

pinnks

AngelHess said:

why not postpone if you can still work and love your job? You will only benefit from this

How?  You forego £11,500 per year, for an extra 5.8% for each year deferred.  Tax may impact the payback period but the policy underpinning deferral is, as I understand it, actuarially cost neutral.

sheslookinhot

AngelHess said:

why not postpone if you can still work and love your job? You will only benefit from this

And it’s all lost on your death, not much benefit.

Linton

sheslookinhot said:

AngelHess said:

why not postpone if you can still work and love your job? You will only benefit from this

And it’s all lost on your death, not much benefit.

You'll be dead so wont care.  On the other hand you could live to >100 and be quids in.

Stubod

...do you feel lucky.....??

Suzycoll

brummie3 said:

Would there be any point in deferring my State Pension by a year ? Approaching pension age with a private pension already paying £15k pa and a part time job paying £12.5k pa i cant see any tax benefit in deferring my pension or am i missing something.?

This is a question only you can answer really.

My own personal opinion is NEVER defer your State Pension especially if you will be claiming the NEW State pension which I assume you will ? You have paid into it so take it . If you die it disappears into the governments coffers 

pinnks

brummie3 said:

Would there be any point in deferring my State Pension by a year ? Approaching pension age with a private pension already paying £15k pa and a part time job paying £12.5k pa i cant see any tax benefit in deferring my pension or am i missing something.?

If you take the pension then it will be taxed in full at 20% as you are firmly within the basic rate band.

If you defer, then you give up £11,500 for an extra £667 per year going forward.  Unless something changes elsewhere, that extra will also be taxed at 20%, so it seems unlikely that you would ever get a tax benefit but as others have said, if you die within 15 or so years (even taking inflation-linking into account) then the gamble will not have paid off.  If it were me, I would just take the pension and enjoy the extra money - none of us know when the Grim Reaper will come knocking... 

jaypers

Life is short. I’ve seen too many people recently taken from this world unexpectedly. Take it now and enjoy life to the full.