You may get extra money if you defer your State Pension. You could get this as either extra State Pension or a lump sum payment.

Extra State Pension

If you put off claiming your State Pension for at least 5 weeks you may earn extra State Pension. Your State Pension will increase by 1% for every 5 weeks you put off claiming. This is the same as 10.4% for every full year you put off claiming.

Example
If you get the full State Pension of £110.15 per week, your basic State Pension will be £5,727.80 a year. By deferring for a year, you’ll get an extra £595 (10.4% of £5,727.80).

Once you claim your State Pension, any extra State Pension you have built up will usually increase each year.

Lump sum payment

If you put off claiming your State Pension for at least 12 months in a row, you may choose to get a one-off lump sum payment. This will include interest of 2% above the Bank of England base rate.

Your extra State Pension counts as income and you have to pay tax on it. Your lump sum is taxed at the highest tax rate that applies to your other income.

Get help and advice

Find an Information Point to get face-to-face advice or leaflets about the State Pension.

You need to make an appointment to get face-to-face advice.

You can also download guidance notes on State Pension deferral.

If you want to defer then don’t send in your pension claim form when you get it. Your State Pension will be automatically deferred until you claim it.

If you get benefits

You’ll need to tell The Pension Service you want to defer.

If you’re already getting your State Pension

If you want to stop claiming your State Pension, you should contact your pension centre.

Extra State Pension

If you’re getting means tested benefits, then extra State Pension will count as income and will affect these benefits, for example:

• Pension Credit
• Housing Benefit
• Council Tax Reduction
• Tax credits

If you're deferring your State Pension, you won't build up any extra State Pension or lump sum payment for the days you’re also receiving any of the following benefits:

• Income Support
• Pension Credit
• Employment Support Allowance (income related) 
• Jobseeker's Allowance (income based)
• Universal Credit
• Carer’s Allowance
• Incapacity Benefit
• Severe Disablement Allowance
• Widow’s Pension
• Widowed Mother’s Allowance
• Unemployability Supplement
• any type of State Pension

If you're deferring your State Pension, you won't build up any extra State Pension or lump sum payment for the days your partner is getting any of the following benefits:

• Income Support
• Pension Credit
• Employment Support Allowance (income related)
• Jobseeker's Allowance (income based)
• Universal Credit

If you get Graduated Retirement Benefit or Shared Additional Pension, these days will count towards your extra State Pension or lump sum.

Lump sum payments

If you choose a lump sum payment and claim Pension Credit, Housing Benefit or Council Tax Reduction, these benefits will not be affected.

You won't build up extra State Pension or lump sum payments for any days you're in prison.

Tax

Your extra State Pension counts as income and you might have to pay tax on it.

Your lump sum is taxed at the highest tax rate that applies to your other income. Contact your tax office if you have specific tax enquiries.

Inheritance

If your husband, wife or civil partner dies while they’re deferring then you may be entitled to inherit their extra State Pension or lump-sum. To do this both of the following must apply:

• you were still married or in the civil partnership when they died
• you have not remarried or formed a new civil partnership before you reach State Pension age

You claim your inheritance when claiming your State Pension.

If you’re a widower or civil partner you must be over State Pension age at the time when your wife or civil partner dies. This condition does not apply to widowers and civil partners who reached State Pension age on or after 6 April 2010.

If you were under State Pension age when your wife or civil partner died and you reached State Pension age before 6 April 2010, you may claim up to 3 months of your late wife's or late civil partner's deferred State Pension.

Similarly, if you’re unmarried or not in a civil partnership when you die, your estate may claim up to 3 months of your deferred State Pension.