State Pension at 60 or defer until new tax year

1051MF

My wife becomes 60 on the 9th February 2009 and is eligible for state pension. She has been told that she would be well advised to defer her pension until after the end of the financial year in April 2009 as she will pay less tax. Is this correct?

dzug

Sounds nonsense to me unless she is currently a higher rate tax payer. Even then, it's only important if paying less tax is more important than having a higher net income.

Unless it means deferring claiming it until after the end of the tax year but then getting it backdated. That could actually result in an overall saving as it would all be taxed (or not) in the second year..

Debt_Free_Chick

If she took her pension at 60, would she have any other income e.g. other pensions, job?

firesidemaid

am i right in thinking that if you defer your state pension for a period of time then it goes up when you do claim?

has she had a pension forecast yet?

tanith

firesidemaid wrote: »

am i right in thinking that if you defer your state pension for a period of time then it goes up when you do claim?

has she had a pension forecast yet?

Somewhere on this site (can't find it ) I read a post that said for every year you defer you would roughly gain £10 per week on your pension... it sounds like not a bad deal put like that but as you don't know whats round the corner I have decided not to defer and to take the money as it becomes available and have the benefit of it straight away , after all if I die the pension dies with me anyway so I would of had no benefit at all if I defered it... others obviously think differently...

CLAPTON

try

http://www.thepensionservice.gov.uk/pdf/spd2/spd2oct07.pdf