Published On: Sat, Dec 28th, 2019

State pension age: Deferring state pension claim explained | Personal Finance | Finance

The state pension must be claimed, and it can only be paid to eligible people once they have reached state pension age. There are a whole host of reasons as to why some people may not immediately claim the state pension – so what happens to the money in these circumstances?

It is possible to defer claiming the state pension, and if this is done for a certain period of time, the amount can increase.

The new state pension can be claimed if a person is a man born on or after April 6, 1951, or a woman born on or after April 6, 1953.

Those born before these dates can follow the basic state pension rules.

The full new state pension is currently £168.60 per week – however the actual amount one gets is dependent on their National Insurance record.

READ MORE: Universal Credit & Child Benefit date changes: When to expect your payment this Christmas

The Department for Work and Pensions (DWP) has explained that people may be receiving less than the full rate because they were previously in an occupational pension scheme, so will be receiving those benefits in addition to the state pension.

Delaying (deferring) the state pension

According to the government website, a person should get a letter no later than two months before they reach state pension age, telling them what to do in regards to claiming the state pension.

Those eligible have the option of either claiming the state pension, or deferring claiming it.


To delay getting the payment, the person does not have to do anything, as it will automatically be deferred until it is claimed.

Deferring the state pension could increase the payments one gets when claiming it.

However, any extra payments which a person gets from deferring could be taxed. also points out that a person can’t build up extra state pension during any period they get certain benefits, and in some cases, they can’t do this during period’s their partner is getting a reduced list of certain benefits too.

This includes Universal Credit, Pension Credit, and Income Support.

If a person reached state pension age on or after April 6, 2016, then their state pension will increase every week they defer – but only provided they defer for at least nine weeks.

The state pension increases by the equivalent of one percent for every nine weeks it is deferred.

This works out just under 5.8 percent for every 52 weeks.

This additional amount is then paid with the regular state pension payment. details what the extra amount could be, with an example of a person who gets the current full new state pension of £168.60 a week.

By deferring for 52 weeks, they would get an extra £9.74 per week (just under 5.8 percent of £168.60).

£9.74 multiplied by 52 is £506.48 – meaning this could be the extra amount a person gets if they defer the full new state pension for 52 weeks.

This example assumes there is no annual increase in the state pension.

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