Part 0800.0005

[Jillus]

Hi Patricia, I might be being a bit dim here but if I defer geting my pension what benefits are there to that, I imagined getting extra money each month would be a bonus. I don't have any occupational pensions, just the state pension coming my way at 61.

 

To be starting out on a new career at my age when by rights I should be at home with grandchildren is just so libearting and exciting, I think it has taken ten years off me overnight. It also means that the new kitchen is looking like a reality now

 

There seems to be so much I don't know though about National Insurance and pensions, I must Google it and find the 'Idiots Guide to all that stuff!'

[Patricia W]

Jillus

 

Phone DWP 0845 601 2923 and they'll tell you all about it. I found them very helpful.

 

Their website says:

 

By deferring your State Pension, your income is increased at a rate of 1% for every 5 weeks you put off drawing it. This equates to 10.4% extra a year.

 

For example, if your State Pension was £105 a week and you decided to delay drawing it for 5 years, the pension you would then receive would be £159.60 a week.

 

You also have the choice of a lump sum, as long as you delay drawing your pension for 12 consecutive months. The lump sum will equal the amount of pension you would have received plus interest. The rate of interest used equates to 2% above the Bank of England base rate.

 

Hope this helps.

 

Tricia