Claiming Pension & Deferred Payment

Astitchintime

Callistemon21

Cossy

Bonnybanko

I deferred my state pension and was sorry I did so I had to pay £6,000 back when I claimed it, and if I had done my research I would have had to live much longer to make it worth my while

Excuse my ignorance, (I do not reach State Pension age til Dec this year), why did you have to pay £6,000 back?

I've never heard of that 🤔

Perhaps Bonnybanko was claiming some sort of benefit that would have automatically ceased at the point of drawing the state pension.

Oh, yes, that might be it.

Germanshepherdsmum

Exactly. I claimed mine straight away even though I was still working full time. A bird in the hand …

I did the same

Callistemon21

Cossy

Bonnybanko

I deferred my state pension and was sorry I did so I had to pay £6,000 back when I claimed it, and if I had done my research I would have had to live much longer to make it worth my while

Excuse my ignorance, (I do not reach State Pension age til Dec this year), why did you have to pay £6,000 back?

I've never heard of that 🤔

Perhaps Bonnybanko was claiming some sort of benefit that would have automatically ceased at the point of drawing the state pension.

Cossy

Bonnybanko

I deferred my state pension and was sorry I did so I had to pay £6,000 back when I claimed it, and if I had done my research I would have had to live much longer to make it worth my while

Excuse my ignorance, (I do not reach State Pension age til Dec this year), why did you have to pay £6,000 back?

I've never heard of that 🤔

Bonnybanko

I deferred my state pension and was sorry I did so I had to pay £6,000 back when I claimed it, and if I had done my research I would have had to live much longer to make it worth my while

Excuse my ignorance, (I do not reach State Pension age til Dec this year), why did you have to pay £6,000 back?

I deferred my state pension and was sorry I did so I had to pay £6,000 back when I claimed it, and if I had done my research I would have had to live much longer to make it worth my while

Claim when four months from state pension age.

Information here:

www.gov.uk/new-state-pension/how-to-claim

I am due to get my state pension later this year how many months notice should you give ?

Exactly. I claimed mine straight away even though I was still working full time. A bird in the hand …

Yes I understand that which is one of the reasons I am claiming it now even though I still work full time. You never know when your times up

If you die your state pension dies with you. Your spouse or civil partner may be able to receive part of it, depending on circumstances, but this isn’t like a private pension pot.

Thanks everyone. Now I know what's what. Yes I did mention HMRC by mistake. It was the Government Pension Department that I spoke to - apologies for that. I clearly misunderstood the rules, but no problem. I still work full time so expect to be taxed on it but at least if anything happens to me, it won't just disappear into a Government black hole. Thanks again everyone

You have to claim your state pension so if you did nothing it will have been deferred automatically.

Germanshepherdsmum is correct. There is no lump sum payment if you reach State Pension age on or after 6 April 2016. Instead, your new state pension will increase every week you defer, as long as you defer for at least 9 weeks.

It increases by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every 52 weeks. The extra amount is paid with your regular state pension and taxed if your total income exceeds the tax threshold.

It's all explained here:

www.gov.uk/deferring-state-pension/what-you-get

HMRC is only involved to the extent that it levies tax and in cases where people are able to plug gaps in their contribution record by paying voluntary Class 3. You make those payments to HMRC.

www.gov.uk/deferring-state-pension/what-you-get

As above- your state pension cannot be taken as a lump sum. I didn't defer mine because you can claim it and still work if you want.
I found the whole thing a bit of a minefield to be fair.

I believe payment of lump sums only applied under the old pension system
www.gov.uk/deferring-state-pension/what-you-get#:~:text=You%20can%20get%20a%20one,12%20months%20in%20a%20row.
I don’t understand why you’re talking about HMRC - the DWP administers the state pension.

As far as I understand that is correct, one years lump sum and any remaining deferred pension added to four weekly amount.