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Deferring a State Pension

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Anagram Fri 20-Jul-12 10:28:42

Surely weekly is in arrears, too, Alison - albeit only a week?!

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AlisonMA Fri 20-Jul-12 10:26:54

Yes, whenever you take your lump sum you will be taxed on it. I deferred my pension and didn't take the lump sum but now have a significantly bigger weekly pension. It is uprated each year along with the basic one so keeps growing. I researched long and hard and it seemed to work out that if you lived for 10 years after taking you deferred pension you would be better off than taking a lump sum.

I also take it weekly as monthly it is in areers.

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mischief Thu 19-Jul-12 18:11:23

Hello all

I am 63. I could have retired at 60 but decided to defer my pension for 5 years while working full time. My state pension is all I will have when I retire and I have no savings. On the government website it says my lump sum 'may' be liable for tax at the amount ruling at the time I retire.

My question is: If I retire and take my weekly pension but put off taking my lump sum, (which I understand I can do for up to a year) will I be taxed when I finally do take the lump sum, as I won't be working? Does anyone know.

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