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To defer State Pension or not ?
Comments
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why not postpone if you can still work and love your job? You will only benefit from this
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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.AngelHess said:why not postpone if you can still work and love your job? You will only benefit from this0 -
And it’s all lost on your death, not much benefit.AngelHess said:why not postpone if you can still work and love your job? You will only benefit from thisMortgage free
Vocational freedom has arrived0 -
You'll be dead so wont care. On the other hand you could live to >100 and be quids in.sheslookinhot said:
And it’s all lost on your death, not much benefit.AngelHess said:why not postpone if you can still work and love your job? You will only benefit from this0 -
...do you feel lucky.....??
.."It's everybody's fault but mine...."1 -
This is a question only you can answer really.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.?
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 coffers0 -
If you take the pension then it will be taxed in full at 20% as you are firmly within the basic rate band.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 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...1 -
Life is short. I’ve seen too many people recently taken from this world unexpectedly. Take it now and enjoy life to the full.0
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