Changes to state pension deferral

From 6 April 2005, changes are made to state pension deferral. People can put off claiming their state pension indefinitely.

When they do decide to claim, they will get their normal state pension (and any additional state pension) plus either extra state pension (this option is already available, but the rate at which it accumulates is improved from 1% extra state pension every seven weeks to 1% every five weeks) or take the new option of a one-off taxable lump sum payment. The amount of extra state pension or the one-off lump sum will vary depending on the length of time they have deferred claiming their state pension.

You can find more information about this from the Department for Work and Pensions website at www.dwp.gov.uk/lifeevent/penret/penreform/6_sp.asp.

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