State pension: You could increase your sum without doing anything at all | Personal Finance | Finance


Britons may be able to increase their state pension by deferring it. This means not claiming the state pension immediately once someone is eligible for it.

The state pension is not paid out automatically when someone reaches state pension age, they have to actually claim it.

Those nearing state pension age should get a letter explaining their options, and then they must decide whether to claim their state pension or defer it.

To defer, they just need to do absolutely nothing. Deferring the state pension could allow people to increase their sum when they do start claiming and get more state pension in the long run.

How much someone could benefit from deferring their state pension depends on which version of the state pension they get and how long they defer for.

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However, Britons should be aware that even if they receive an increased state pension by deferring, they may still end up worse off, as it will take time for them to make up for the state pension they could have received if they had claimed immediately.

Some people may not be allowed to receive extra state pension because of certain benefits they receive. In this case, deferral would not benefit them.

Britons cannot build up extra state pension during any period in which they get:

  • Income Support
  • Pension Credit
  • Employment and Support Allowance (income-related)
  • Jobseeker’s Allowance (income-based)
  • Universal Credit
  • Carer’s Allowance
  • Incapacity Benefit
  • Severe Disablement Allowance
  • Widow’s Pension
  • Widowed Parent’s Allowance
  • Unemployability Supplement.

Those receiving benefits should also note that receiving a higher weekly state pension amount as a result of deferral could lower the amount they receive from benefits such as:

  • Income Support
  • Pension Credit
  • Universal Credit
  • Employment and Support Allowance (income-related)
  • Jobseeker’s Allowance (income-related)
  • Housing Benefit
  • Council Tax Reduction
  • Tax credits.

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