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Should I delay taking my state pension?

Deferring the state pension can result in higher payments and mitigate tax
Should I delay taking my state pension?

Q: Is it better to let your state pension accumulate? I have accumulated about two years' worth of pension but I am wondering if I would be better off taking?

P Jayaweera


  • A key factor in deciding whether to defer the state pension is if you became eligible to start receiving it before or after 6 April 2016
  • Those eligible for the state pension before this date generally get a better deal if they defer it
  • But deferring the state pension, regardless of when you became eligible to receive it, can mitigate tax

When you reach state pension age, currently 66, you do not get it automatically – you have to claim it via a government form. If you do nothing, your pension will defer and when you do start to take it you get higher weekly payments. If you do not need state pension income immediately, whether you should defer taking it depends on a number of factors relating to your personal circumstances.

Although you get higher payments when you eventually receive your state pension it can take some time to recoup the amount you did not take during the period that it was deferred. So if you die before this ‘break even’ period is complete you could lose out financially.

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