What do i get

lammyseptemberboy

Hi
   i am still employed and earn in the higher tax bracket, i have been deferring for 3 years in September, i plan to work another 3-4 years, so will have deferred for 6-7 years, how will i get the money back i have deferred, is there a lump sum available or is it tagged onto my state pension and spread over an amount of years? if so hoe many, looking for the best route as if its not worth it should i start to draw it now and pay tax, thanks in advance

BobR64

What is that you have deferred? I presume some sort of pension given the forum, but what? You will need to provide more information for anyone to be able to help you.

Smudgeismydog

Are you referring to deferring your state pension?

Marcon

lammyseptemberboy said:

Hi
   i am still employed and earn in the higher tax bracket, i have been deferring for 3 years in September, i plan to work another 3-4 years, so will have deferred for 6-7 years, how will i get the money back i have deferred, is there a lump sum available or is it tagged onto my state pension and spread over an amount of years? if so hoe many, looking for the best route as if its not worth it should i start to draw it now and pay tax, thanks in advance

Google on 'deferring state pension' and you get your answer: https://www.gov.uk/deferring-state-pension/what-you-get

The 'best route' depends on what you want to achieve.

p00hsticks

As you reached state pension age after 2016, you aren't eligible for a lump sum - you'll jsut get a higher amount of weekly state pension going forward than you would if you hadn't deferred.

Dazed_and_C0nfused

p00hsticks said:

As you reached state pension age after 2016, you aren't eligible for a lump sum - you'll jsut get a higher amount of weekly state pension going forward than you would if you hadn't deferred.

There is one "lump sum" option available to the op.

They could backdate their application by a maximum of 12 months and DWP have to pay the amount due from then until now as a lump sum.

But it doesn't have any of the special tax rules a pre 2016 deferral lump sum has. 

It's just income of the tax year it relates to, not the tax year it was paid in.

lammyseptemberboy

p00hsticks said:

As you reached state pension age after 2016, you aren't eligible for a lump sum - you'll jsut get a higher amount of weekly state pension going forward than you would if you hadn't deferred.

Thanks, so if i defer for another 3 years making 6 years how long do they spread the amount over? there must be a given length of time its spread accross

lammyseptemberboy

BobR64 said:

What is that you have deferred? I presume some sort of pension given the forum, but what? You will need to provide more information for anyone to be able to help you.

Hi, its my state pension, tahnkyou

Dazed_and_C0nfused

lammyseptemberboy said:

p00hsticks said:

As you reached state pension age after 2016, you aren't eligible for a lump sum - you'll jsut get a higher amount of weekly state pension going forward than you would if you hadn't deferred.

Thanks, so if i defer for another 3 years making 6 years how long do they spread the amount over? there must be a given length of time its spread accross

It's not spread across any length of time.

If you're very unlucky you will die before the first enhanced payment lands in your bank account.

On the other hand you could be getting it for 30+ years.

Not really sure why you chose to defer your State Pension if you don't actually understand how it works 🤔

dharm999

lammyseptemberboy said:

p00hsticks said:

As you reached state pension age after 2016, you aren't eligible for a lump sum - you'll jsut get a higher amount of weekly state pension going forward than you would if you hadn't deferred.

Thanks, so if i defer for another 3 years making 6 years how long do they spread the amount over? there must be a given length of time its spread accross

The amount you’ve deferred isn’t paid back to you as such over a set period of time. What happens is the amount of state pension you get if you take it, increases by a certain amount, so by deferring you are ‘gambling’ that you will live long enough to get the amount you have deferred.

The link by Marcon above explains exactly what happens, have you looked at it?

Marcon

lammyseptemberboy said:

p00hsticks said:

As you reached state pension age after 2016, you aren't eligible for a lump sum - you'll jsut get a higher amount of weekly state pension going forward than you would if you hadn't deferred.

Thanks, so if i defer for another 3 years making 6 years how long do they spread the amount over? there must be a given length of time its spread accross

Please read the link I've given above - full explanation there.