9 years Deferred Pension

RegoR

I have put off taking my state pension for the past 9 years, I am now 74,  I will get my first payment on Monday 29th of July.

I have been told my weekly pension will be £292.04, I assume that it’s the right calculation….is there anyway of checking what the calculation should be? (ie. Pension calculator)

I have also asked for my wife’s pension to be taken into account, unfortunate she died in January 2011 aged 58.5, before she could draw her pension. which I believe was due in July 2014

Also, I was hoping to have had a lump sum, I have not been offered one…..is that not available now?

When I see that the basic state pension for somebody now its £226 per month ?

It doesn’t seem to have improved my pension by deferring it for 9 years?

I appreciate that pensions are complicated subject but is it too late to do anything now to get a better return.

Many thanks

Tassie_Devil

Here’s how deferring the SP works:
https://www.gov.uk/deferring-state-pension/what-you-get

Devongardener

Have you received a letter showing how your pension is calculated?
You should be able to claim either a lump sum or the extra pension but not both.

https://www.litrg.org.uk/pensions/state-pension/tax-state-pension/putting-deferring-claiming-state-pension

Try calling the Pension Service to check about your wife’s pension, they are usually quite helpful!

molerat

I have been told my weekly pension will be £292.04,

When I see that the basic state pension for somebody now its £226 per month ?

It doesn’t seem to have improved my pension by deferring it for 9 years?

The "New state pension" is £221.20.  That amount is irrelevant to you as you are on the "Old state pension".  The "basic state pension", which is applicable to you,  is currently £169.50 and can be lifted to £387.90 with additional pension.  Don't compare apples to oranges.

flaneurs_lobster

molerat said:

The "New state pension" is £221.20.  That amount is irrelevant to you as you are on the "Old state pension".  The "basic state pension", which is applicable to you,  is currently £169.50 and can be lifted to £387.90 with additional pension. 

So that's four pensions you've mentioned without defining any of them:

New state pension
Old state pension
Basic state pension
Additional pension

Easyjet77

RegoR said:

I have put off taking my state pension for the past 9 years, I am now 74,  I will get my first payment on Monday 29th of July.

I have been told my weekly pension will be £292.04, I assume that it’s the right calculation….is there anyway of checking what the calculation should be? (ie. Pension calculator)

I have also asked for my wife’s pension to be taken into account, unfortunate she died in January 2011 aged 58.5, before she could draw her pension. which I believe was due in July 2014

Also, I was hoping to have had a lump sum, I have not been offered one…..is that not available now?

When I see that the basic state pension for somebody now its £226 per month ?

It doesn’t seem to have improved my pension by deferring it for 9 years?

I appreciate that pensions are complicated subject but is it too late to do anything now to get a better return.

Many thanks

I'm not sure the " pension for somebody now is £226 per month" is correct.

Dazed_and_C0nfused

Easyjet77 said:

RegoR said:

I have put off taking my state pension for the past 9 years, I am now 74,  I will get my first payment on Monday 29th of July.

I have been told my weekly pension will be £292.04, I assume that it’s the right calculation….is there anyway of checking what the calculation should be? (ie. Pension calculator)

I have also asked for my wife’s pension to be taken into account, unfortunate she died in January 2011 aged 58.5, before she could draw her pension. which I believe was due in July 2014

Also, I was hoping to have had a lump sum, I have not been offered one…..is that not available now?

When I see that the basic state pension for somebody now its £226 per month ?

It doesn’t seem to have improved my pension by deferring it for 9 years?

I appreciate that pensions are complicated subject but is it too late to do anything now to get a better return.

Many thanks

I'm not sure the " pension for somebody now is £226 per month" is correct.

It will be for someone, but not for the vast, vast majority of people.

p00hsticks

flaneurs_lobster said:

molerat said:

The "New state pension" is £221.20.  That amount is irrelevant to you as you are on the "Old state pension".  The "basic state pension", which is applicable to you,  is currently £169.50 and can be lifted to £387.90 with additional pension. 

So that's four pensions you've mentioned without defining any of them:

New state pension
Old state pension
Basic state pension
Additional pension

New state pension - the pension that was introduced on 6th April 2016 for anyone reaching State Pension Age after that date. For those whose working lives started before that date the amount they receive will depend on their individual NI records and can be higher or lower than the standard 'new State Pension amount' , currently £221.20 a week. 

'Old' state pension -  - the State pension in effect for those reaching state pension age prior to 6th April 2016, made up of the Basic State Pension and Additional pension. The Basic state pension amount is currently £169.50. Many will also have an Additional Pension amount added to that, again depending on their NI records and whether they were contracted in or out of SERPS (Stat Earning Related Pension Scheme) or the S2P (State 2nd Pension). Under the old scheme married couples could also obtain or inherit pension based on their spouses record, something which is largely not available under the new scheme. 

As both the OP and their wife appear to have reached SPA under the old scheme, then the OP should have had the option of a lump sum rather than an increased pension after deferring (not available under the new scheme). They may also be able to inherit some of their wifes pension. 

Easyjet77

Dazed_and_C0nfused said:

Easyjet77 said:

RegoR said:

I have put off taking my state pension for the past 9 years, I am now 74,  I will get my first payment on Monday 29th of July.

I have been told my weekly pension will be £292.04, I assume that it’s the right calculation….is there anyway of checking what the calculation should be? (ie. Pension calculator)

I have also asked for my wife’s pension to be taken into account, unfortunate she died in January 2011 aged 58.5, before she could draw her pension. which I believe was due in July 2014

Also, I was hoping to have had a lump sum, I have not been offered one…..is that not available now?

When I see that the basic state pension for somebody now its £226 per month ?

It doesn’t seem to have improved my pension by deferring it for 9 years?

I appreciate that pensions are complicated subject but is it too late to do anything now to get a better return.

Many thanks

I'm not sure the " pension for somebody now is £226 per month" is correct.

It will be for someone, but not for the vast, vast majority of people.

Wow! £52 appx per week state pension. I now appreciate why pension credit is important and necessary for some.
   Apologies if unhelpful to OP.

Dazed_and_C0nfused

Easyjet77 said:

Dazed_and_C0nfused said:

Easyjet77 said:

RegoR said:

I have put off taking my state pension for the past 9 years, I am now 74,  I will get my first payment on Monday 29th of July.

I have been told my weekly pension will be £292.04, I assume that it’s the right calculation….is there anyway of checking what the calculation should be? (ie. Pension calculator)

I have also asked for my wife’s pension to be taken into account, unfortunate she died in January 2011 aged 58.5, before she could draw her pension. which I believe was due in July 2014

Also, I was hoping to have had a lump sum, I have not been offered one…..is that not available now?

When I see that the basic state pension for somebody now its £226 per month ?

It doesn’t seem to have improved my pension by deferring it for 9 years?

I appreciate that pensions are complicated subject but is it too late to do anything now to get a better return.

Many thanks

I'm not sure the " pension for somebody now is £226 per month" is correct.

It will be for someone, but not for the vast, vast majority of people.

Wow! £52 appx per week state pension. I now appreciate why pension credit is important and necessary for some.
   Apologies if unhelpful to OP.

It will become increasingly rare as the minimum 10 years rule for those entirely under new State Pension rules kick in.

But for those under transitional rules I think you are guaranteed to get whatever your foundation amount was from 2016 (plus triple lock increases since then) so small amounts could still be possible for a small number of people who haven't added much to their foundation amount.

hugheskevi

Dazed_and_C0nfused said:

Easyjet77 said:

Dazed_and_C0nfused said:

Easyjet77 said:

RegoR said:

I have put off taking my state pension for the past 9 years, I am now 74,  I will get my first payment on Monday 29th of July.

I have been told my weekly pension will be £292.04, I assume that it’s the right calculation….is there anyway of checking what the calculation should be? (ie. Pension calculator)

I have also asked for my wife’s pension to be taken into account, unfortunate she died in January 2011 aged 58.5, before she could draw her pension. which I believe was due in July 2014

Also, I was hoping to have had a lump sum, I have not been offered one…..is that not available now?

When I see that the basic state pension for somebody now its £226 per month ?

It doesn’t seem to have improved my pension by deferring it for 9 years?

I appreciate that pensions are complicated subject but is it too late to do anything now to get a better return.

Many thanks

I'm not sure the " pension for somebody now is £226 per month" is correct.

It will be for someone, but not for the vast, vast majority of people.

Wow! £52 appx per week state pension. I now appreciate why pension credit is important and necessary for some.
   Apologies if unhelpful to OP.

It will become increasingly rare as the minimum 10 years rule for those entirely under new State Pension rules kick in.

But for those under transitional rules I think you are guaranteed to get whatever your foundation amount was from 2016 (plus triple lock increases since then) so small amounts could still be possible for a small number of people who haven't added much to their foundation amount.

You will probably need to be overseas for a good proportion of working life to fail to accrue enough qualifying years, given the extensive credit system in place.

To live in the UK all your life and fail to accrue new State Pension would need a person to be doing very little for many years, eg, housewife/househusband without children, or very early retirement. For that group, there are Class 3 NICs available, so they would also have to fail to purchase those despite the huge incentive to do so.

We still have about 5 years before reaching steady-state following the transition from old State Pension, after which it will be rare for people retiring not to have a full pension.


Source: 2016 new State Pension analysis by DWP