Deferred state pension

the_gardener_2

I have had a deferred a state pension for a while.  Quick question.   There is  a percentage uplift due to being differed.    I assume I get the annual indexation increases as well.   I only ask as I had a letter recently stating the current amount payable and I am struggling to see how the figure was calculated.      

powerful_Rogue

the_gardener_2 said:

I have had a deferred a state pension for a while.  Quick question.   There is  a percentage uplift due to being differed.    I assume I get the annual indexation increases as well.   I only ask as I had a letter recently stating the current amount payable and I am struggling to see how the figure was calculated.      

Better suited to the pensions board as it's not consumer rights related.

https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning

I've asked for it to be moved.

badmemory

The uplift is 1% for every 9 weeks deferred BUT when the annual increase only applies to the state pension & the additional part is sometimes at a different rate.  Would that explain the difference from what you expected.  This applies to the new state pension, the basic state pension increases at 1% for every 5 weeks but is based on the lower amount.

xylophone

When exactly did you reach State Pension Age?

the_gardener_2

xylophone said:

When exactly did you reach State Pension Age?

may  2021    hope that helps

xylophone

may  2021

Then you are deferring under the new scheme.

https://www.gov.uk/deferring-state-pension/what-you-get

the_gardener_2

Ok thanks I read that.     So it increases   at a little under 5.8  %  per year.    The question is should I get the yearly triple lock increase as well.        I had a letter recently  asking what the payment would be if I claimed now.    The figure I got was a long way from what I was expecting.       

Linton

the_gardener_2 said:

Ok thanks I read that.     So it increases   at a little under 5.8  %  per year.    The question is should I get the yearly triple lock increase as well.        I had a letter recently  asking what the payment would be if I claimed now.    The figure I got was a long way from what I was expecting.       

You will get all the standard annual increases so when the SP is restarted the basis will be the pension that would have been paid had it not been deferred.  The 5.8% is added to that figure.

Note that the triple lock in future years only applies to the main SP.  The value of the 5.8% added is only increased with CPI so over the years it will form a lower % of the main SP.