Triple Lock uprating solely applies to the base rate of the State Pension
Thousands of Brits planning on retiring this year could access an extra £695 from the Government if they hang on for a bit longer. Figures obtained by Royal London through a Freedom of Information (FOI) request reveal that nearly 42,000 people (41,938) claimed a previously deferred State Pension in 2023/24, receiving higher weekly payments in return for postponing.
According to the data, one in four pensioners (10,656 people) had put off their State Pension for five years or more. It also emerged that 4,435 people delayed claiming the contributory benefit by 10 years or more.
The average deferral period was four years, giving those who held off for this length of time approximately £50 extra per week. Delaying or deferring the State Pension means an individual has chosen not to claim their State Pension upon reaching State Pension age.
From April this year until 2028, the State Pension age will rise to 67 for those born between March 6, 1961 and April 5, 1977, who can claim the New State Pension on their 67th birthday. The State Pension increases by 1 per cent for every nine weeks someone defers, equating to 5.8 per cent per year.
However, those who delayed taking their State Pension before the New State Pension was introduced on April 6, 2016 were entitled to a more generous rate of 10.4 per cent extra a year, which they received for the entire duration of their delay, reports the Daily Record.
Strikingly, the data revealed that 591 people had not claimed their State Pension 20 years or more after becoming entitled to it. Some retirees claiming their State Pension for the first time in 2023/24 had delayed for more than three decades. The FOI revealed the average length of the 25 longest deferred claims was 32 years.
These ‘super-postponers’ initially became eligible for their State Pension during 1991/92, when the qualifying age was 65 for men and 60 for women. In theory, the majority of these individuals would now be in their 90s, with some potentially exceeding 100 years of age.
People typically delay claiming their State Pension for one of two reasons:
- to receive extra income from their State Pension when they claim
- to reduce the amount of taxable income they’re currently receiving – this means putting off claiming the State Pension can be a better option for someone who’s a higher rate taxpayer.
While postponing a claim can result in considerably higher weekly payments further down the line, those opting to defer under the current system may not survive long enough to recover the money they forfeited, particularly if they are basic rate taxpayers.
For instance, someone deferring for one year from January 2026 would receive payment of £243.60-a-week in 2027 plus any Triple Lock boosts along the way, meaning they’ll receive £694.72 extra per year (before the boosts).
However, for the year they deferred, they will have missed out on almost £12,000 of State Pension, assuming they were entitled to the full new State Pension. The Triple Lock uprating solely applies to the base rate of the State Pension, with additional elements such as a deferred payment uprated in line with the September Consumer Price Inflation (CPI) rate.
For basic rate taxpayers who delay claiming their State Pension by one year, they would need to live until roughly the age of 82 before seeing any financial benefit from the deferral. For those with taxable earnings exceeding £50,270, the break-even point comes earlier, at just 79 years old.
State Pension Rates 2026/27
Full New State Pension
- Weekly: £241.30 (from £230.25)
- Four-weekly pay period: £965.20
- Annual amount: £12,547
Full Basic State Pension
- Weekly: £184.90 (from £176.45)
- Four-weekly pay period: £739.60
- Annual amount: £9,614
Other State Pension rates
- Category B (lower) Basic State Pension – spouse or civil Partner’s insurance: £110.75 (from £105.70)
- Category C or D – non-contributory: £110.75 (from £105.70)
The new payment rates will start on April 6. Sharing her thoughts on the findings, Sarah Pennells, Consumer Finance Specialist at Royal London, said: “Many people are only too keen to claim their State Pension, however, our figures show that some people, for whatever reason, are delaying getting their State Pension payments.
“The numbers deferring in 2023/24 have fallen quite dramatically from the previous year, which could be because fewer pensioners are able to manage without the State Pension. However, with the new State Pension expected to rise to just below the personal allowance from April, we could see an increase in the numbers of people with other forms of income deferring, as they look to reduce the income tax they pay.”
Ms Pennells added: “If you’re thinking of delaying claiming your State Pension, then it’s a good idea to assess whether it is right for you. Getting the extra money may look attractive, but you are giving up the right to receive any State Pension payments until you stop deferring, and it could take years to see the benefit. The less tax you pay, the less worthwhile delaying might be.
“If someone defers their pension and then dies, their surviving spouse or civil partner will only receive the extra pension if the person who deferred reached State Pension age before 6 April 2016. These figures highlight why it’s so important to think carefully before making this decision.”
Advantages of deferring your State Pension
- Higher weekly payments: For every year you defer, your State Pension increases by 5.8%, giving you a bigger income later in life.
- Bigger annual increases: Because annual increases apply as a percentage of what you’re already receiving, a higher starting amount means larger annual increases.
- Tax savings: If you’re still working at State Pension age, then it’s likely you will pay income tax on your State Pension if you draw it in addition to your salary or earnings. Deferring can help reduce your tax bill by avoiding extra income during your peak earning years.
Disadvantages of deferring your state pension
- You may never break even: No one knows how long they will live and deferring your State Pension may mean you never make up the money.
- Less money now: Deferring means giving up income you could use today, which may affect your lifestyle or savings.
More details on deferring your State Pension can be found on GOV.UK.
