Delay (defer) your State Pension

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1. How it works

You do not get your State Pension automatically - you have to claim it. You should get a letter no later than 2 months before you reach State Pension age, telling you what to do.

You can either claim your State Pension or delay (defer) claiming it.

If you want to defer, you do not have to do anything. Your pension will automatically be deferred until you claim it.

Deferring your State Pension could increase the payments you get when you decide to claim it. Any extra payments you get from deferring could be taxed.

This guide is also available in Welsh (Cymraeg).

2. What you'll get

The amount of extra State Pension you could get depends on when you reach State Pension age.

If you reach State Pension age on or after 6 April 2016

Your State Pension will increase every week you defer, as long as you defer for at least 9 weeks.

Time spent in prison or when you or your partner get certain benefits does not count towards the 9 weeks.

Your State Pension increases by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every 52 weeks.

The extra amount is paid with your regular State Pension payment.

Example

You get £221.20 a week (the full new State Pension).

By deferring for 52 weeks, you’ll get an extra £12.82 a week (just under 5.8% of £221.20).

This example assumes there is no annual increase in the State Pension. If there is an annual increase, the amount you could get could be larger.

If you or your partner get benefits

Your State Pension will not increase while you or your partner are getting certain benefits. 

If you’re in prison

Your State Pension will not increase when you’re in prison. 

If you reached State Pension age before 6 April 2016

You can usually take your extra State Pension as either:

  • higher weekly payments
  • a one-off lump sum

When you claim your deferred State Pension, you’ll get a letter asking how you want to take your extra pension. You’ll have 3 months from receiving that letter to decide.

Higher weekly payments

Your State Pension will increase every week you defer, as long as you defer for at least 5 weeks.

Time spent in prison or when you or your partner get certain benefits does not count towards the 5 weeks.

Your State Pension increases by the equivalent of 1% for every 5 weeks you defer. This works out as 10.4% for every 52 weeks.

The extra amount is paid with your regular State Pension payment.

Example

You get £169.50 a week (the full basic State Pension).

By deferring for 52 weeks, you’ll get an extra £17.62 a week (10.4% of £169.50).

This example assumes there is no annual increase in the State Pension. If there is an annual increase, the amount you could get could be larger.

Lump sum payment

You can get a one-off lump sum payment if you defer claiming your State Pension for at least 12 months in a row. This will include interest of 2% above the Bank of England base rate.

You’ll be taxed at your current rate on your lump sum payment. For example, if you’re a basic rate taxpayer your lump sum will be taxed at 20%.

If you or your partner get benefits

Your State Pension will not increase while you or your partner are getting certain benefits. 

If you’re in prison

Your State Pension will not increase while you’re in prison. 

Annual increases

After you claim your State Pension, the extra amount you get because you deferred will usually increase each year based on the Consumer Price Index. It will not increase for some people who live abroad.

Get help

Contact the State Pension claim line if you need help.

3. If you get benefits or tax credits

You cannot build up extra State Pension during any period you get:

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

You cannot build up extra State Pension during any period your partner gets:

  • Income Support
  • Pension Credit
  • Universal Credit
  • Employment and Support Allowance (income-related)
  • Jobseeker’s Allowance (income-related)

You must tell the Pension Service if you’re on benefits and you want to defer.

You will need to defer for a minimum amount of time before your State Pension will start to increase. This will either be 9 or 5 weeks, depending on when you reach State Pension age. Time when you (or your partner) get these benefits does not count towards that time.

Higher weekly payments

Taking your extra State Pension as higher weekly payments could reduce the amount you get from:

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

If you reached State Pension age before 6 April 2016

Your tax credits or Universal Credit payments may be reduced if you choose to take your extra State Pension as a lump sum.

Winter Fuel Payment

You need to claim Winter Fuel Payment if you’ve deferred your State Pension. You only need to do this once.

Get help

Contact Jobcentre Plus if you need help to understand how your benefits could be affected.

4. If you move abroad

If you move to any of the countries in this list, the rules for deferring are the same as in the UK:

If you move to a country that is not in the list, the extra payment you get will stay the same. It will not go up or down over time.

If you reach State Pension age on or after 6 April 2016

If you move to a country that is not in the list, your extra payment will be based on the State Pension you’re owed at whichever is later of:

Contact the International Pension Centre if you need help working out what you could get.

5. Claim a deferred State Pension

Claim the new State Pension if you are:

  • a man born on or after 6 April 1951
  • a woman born on or after 6 April 1953

Claim the basic State Pension if you are:

  • a man born on or before 5 April 1951
  • a woman born on or before 5 April 1953

There’s a different way to claim if:

6. Inheriting a deferred State Pension

You can usually inherit your partner’s extra State Pension if all of the following apply:

  • your partner reached State Pension age before 6 April 2016
  • you were married to, or in a civil partnership with, your partner when they died
  • your partner had deferred their State Pension or was claiming their deferred State Pension when they died
  • you did not remarry or form a new civil partnership before you reached State Pension age

If your partner died before 6 April 2010, one of the following must also apply:

  • you were over State Pension age when your partner died
  • you were under State Pension age when your partner died, you’re a woman and your deceased partner was your husband

You can only receive any extra State Pension you’ve inherited once you’ve reached State Pension age.

If your partner died before claiming their State Pension

How you inherit your partner’s extra State Pension depends on how long they deferred their pension for.

A year or more

If your partner deferred their State Pension by a year or more, you can usually choose to inherit it as a lump sum or as weekly payments. You’ll get a letter with the options you can choose from.

Between 5 weeks and a year

If your partner deferred their State Pension by between 5 weeks and a year, you’ll inherit it as weekly payments. You’ll get these payments with your own State Pension.

Less than 5 weeks

If your partner deferred their State Pension by less than 5 weeks, their State Pension payments for those weeks will become part their estate (their total property, money and possessions).

If your partner was getting their extra State Pension before they died

You’ll inherit your partner’s extra State Pension as extra weekly payments. You’ll get these payments with your own State Pension.