Deferring State Pension and what you will get
You don’t get your State Pension automatically, you have to claim it. You should get a letter no later than two months before you reach State Pension age, telling you what to do. You can either claim your State Pension or delay (defer) claiming it.
What you need to do to defer your State Pension
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.
Deferring if you are on benefits
You cannot get extra State Pension if you get certain benefits. Deferring can also affect how much you can get in benefits.
You must tell the Northern Ireland Pension Centre if you're on benefits and you want to defer.
What you will get
The amount of extra State Pension you could get depends on when you reach State Pension age.
Reaching State Pension age on or after 6 April 2016
You can get the State Pension you’ve deferred as:
- a one-off arrears payment of up to 52 weeks (12 months)
- increased regular payments (known as extra State Pension)
- both a one-off arrears payment and increased regular payments
Get a one-off arrears payment
You can only claim a one-off arrears payment of up to 52 weeks.
If you defer for longer than 52 weeks, you’ll get the rest as extra State Pension.
Example
If you defer your full new State Pension for 52 weeks, you’ll get a one-off arrears payment of £12,547.60.
If you defer your full new State Pension for 27 weeks, you’ll get a one-off arrears payment of £6,515.10.
You will not get any interest added to your one-off arrears payment.
Get increased regular payments
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 you defer, you’ll get one per cent added to your regular weekly pension payment for life.
This works out as just under 5.8 per cent for every 52 weeks (12 months) you defer.
Example
You get £241.30 a week (the full new State Pension).
If you defer for 52 weeks, you’ll get an extra £13.94 a week (5.8 per cent of £241.30).
If you defer for 104 weeks (two years), you’ll get an extra £27.88 a week (11.6 per cent of £241.30).
It will take over 15 years to get back 52 weeks of deferred full new State Pension.
This time increases by around one year for each additional 52 weeks you defer claiming.
Get a one-off arrears payment and increased regular payments
You can get your deferred pension as both a one-off arrears payment and increased regular payments.
Example
If you defer your full new State Pension for 78 weeks (18 months), you can backdate your claim by 12 months and get a one-off arrears payment of £12,547.60.
For the additional 26 weeks deferred you’ll get an extra State Pension payment of £6.97 per week (2.89 per cent of £241.30).
If you reached State Pension age before 6 April 2016
You can get the State Pension you’ve deferred as either:
- increased regular payments (known as extra State Pension)
- a one-off lump sum payment
You cannot get both increased regular payments and a lump sum. Unless you reached State Pension age and deferred before 2005.
When you claim your State Pension, you’ll get a letter asking how you want to get your deferred pension. You’ll have three months from the date on the letter to decide.
Get increased regular payments
You can get your deferred pension as an extra payment on top of your regular payment.
You must defer your State Pension for at least five weeks.
For every five weeks you defer, you’ll get one per cent of that amount added to your regular payment for life.
This works out as just under 10.4 per cent for every 52 weeks (12 months) you defer.
Example
You get £184.90 a week (the full basic State Pension).
By deferring for 52 weeks, you’ll get an extra £19.23 a week (10.4 per cent of £184.90).
Get a one-off payment
You must defer your basic State Pension for at least 12 months to get a one-off lump sum payment.
The amount you get will include interest of two per cent above the Bank of England base rate.
If you are in prison
You won’t build up extra State Pension until you leave prison.
Annual increases
After you claim your State Pension, the extra regular amount you get because you deferred will usually increase each year based on the Consumer Price Index.
It won’t increase for some people who live abroad. Learn more in the next section on deferring State Pension if you move abroad.
Deferring State Pension if you move abroad
If you move to any of the counties in this list, the rules for deferring your State Pension are the same as in the UK:
- countries in the EU and European Economic Area (EEA)
- Switzerland
- a country with which the UK has a social security agreement (except Canada or New Zealand) - learn more about claiming benefits if you live, move or travel abroad: where you can claim benefits
If you move to a country that is not in the list, the extra payment you get will stay the same. It won’t go up or down over time.
Reaching 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:
- the date you reach State Pension age
- the date you move abroad
Contact the International Pension Centre if you need help working out what you could get.
Get help
Contact the Northern Ireland Pension Centre State Pension claim line if you need help. For contact details go to: