You may be approaching your state retirement age, but might be thinking that you do not actually need to take this money.  Perhaps you do not need the income, or you might be planning to carry on working or earning after that period.  If you do not need to take the State pension, then you might want to think about delaying the state pension, so that you can avoid paying tax on it. This article has been updated with the latest figures for delaying the state pension in 2013/14.

When can you start receiving your basic State pension?

This depends on your situation:

  • For men born before 6 December 1953, the current State Pension age is 65
  • For women born after 5 April 1950 but before 6 December 1953, their State Pension age is between 60 and 65
  • After December 2018 the pension age for men and women will gradually increase to age 66
  • Eventually, the State pension age will reach 68
  • Claim your free retirement checklist

Delaying the state pension

Delaying the state pension is a little known and used facility, but you can actually elect to defer taking your State pension.  This will benefit you by allowing you to get an increase on future income levels from the State scheme.  You can choose to defer benefits in 5-week periods after deferring for at least a year.  Future increases will go up in line with the rise in pensions, and are guaranteed.

What is the benefit of delaying the state pension?

The current rate of the basic State pension (2013-14) is £110.15 per week (gross of tax).

  • Delaying the state pension 1 year gives you an additional £11.44 per week – an increase of 10.4%
  • Delaying the state pension 3 years and this rises to £31.20 per week – an increase of nearly 28.3%
  • Delaying the state pension 5 years and this rises to £52.00 per week – an increase of nearly 47.2%

If you are about to retire and are concerned about your future pension income, read our retirement annuity case study.

What to do if you are retiring soon

We have created a handy free resource if you are retiring soon – the retirement checklist. This gives you the top 10 tools you need to know to claim the maximum retirement income. Just complete the form below to claim your checklist.


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