State pensioners can receive an additional £727.48 per year from the Department for Work and Pensions by choosing to defer their state pension. Deferring for a full year adds 5.8% to the regular weekly payment, based on the full new state pension of £241.30 per week.
How Deferring Works
The Labour Party government explains: 'You can get your deferred pension as an extra payment on top of your regular payment. You must defer claiming your State Pension for at least nine weeks before you can claim increased regular payments.' For every nine weeks deferred, 1% is added to the weekly pension for life, equating to just under 5.8% for 52 weeks.
Example: If you receive £241.30 a week (the full new State Pension) and defer for 52 weeks, you get an extra £13.99 per week (5.8% of £241.30), totalling £727.48 annually.
Financial Advice
Financial Advisers Red Dot Group recommend: 'To make the most of your retirement, consider reviewing your overall financial plan. One of the first steps could be obtaining a State Pension forecast. This free service from the government lets you check how much you’re likely to receive and identify any gaps in your NI record. Additionally, explore options like deferring your State Pension. For each year you delay claiming it, your payment increases by around 5.8%, which may be valuable for those who can afford to wait.'
Considerations
Money Helper adds: 'Delaying or stopping your State Pension means you’ll get more when you do claim, but you’ll receive it over a shorter period. Your State Pension generally stops when you die, unless your husband, wife or civil partner can inherit it. The State Pension and your partner tool on GOV.UK will show your options. This means you’ll need to weigh up if you or your partner are likely to live long enough to gain more overall.'
