State pensioners born between 1951 and 1960 can receive an additional £727 from the Department for Work and Pensions (DWP) by deferring their pension. Under current DWP rules, individuals born before 1960 are eligible for the state pension. The full new rate applies to men born after 1951 and women born after 1953, but deferring can significantly increase weekly payments.
How Deferral Works
The DWP explains that for every nine weeks you defer your state pension, you receive a 1% increase added to your regular weekly payment for life. This equates to just under 5.8% for every 52 weeks (12 months) of deferral. For example, if you receive the full new state pension of £241.30 per week and defer for 52 weeks, you get an extra £13.99 per week, totalling £727 annually. Deferring for 104 weeks (two years) results in an additional £27.99 per week.
Expert Advice from Martin Lewis
Money Saving Expert founder Martin Lewis advises that deferring can be beneficial for those in good health with a family history of longevity, as it pays off if you live longer than average. However, for those in poor health, it may not be worthwhile. He also highlights tax considerations: if you currently have a high income but will pay a lower tax rate later, deferring can be very advantageous.
The DWP adds that you must defer for at least nine weeks to qualify for increased regular payments. The deferred pension can be taken as an extra payment on top of your regular amount.
