Deferring state pension

ManAtHome

You can also take a lump sum after deferring your pension - bit like a regular saver, you get your pension plus 2% over BoE base rate (so currently 7.5%). When you take the lump sum, it's taxed at your highest rate in the tax year you take it - so could be tax free.

moneylover

jem16 wrote: »

Assuming under 65 you can have income ( salary, pension, savings interest, dividend payments) of;

£5225 tax-free
next £2230 is taxed at 10% ( from April this 10% band will disappear)
From £2231 to £34,600 is taxed at 22%
Income above £34,600 is taxed at 40%
).

And if you are paying INTO a pension you dont pay tax on the contribution so you may well have an income above £34,600 before paying higher rate