Reader Question:
I have been retired for 10 years am I eligible to now go on to a State Pension deferral?
My response:
Yes, as long as you have reached your official State Pension Age. If you are unsure when that is here is a State Pension Age calculator which can calculate it for you.
Deferring a State Pension not already in payment
The official line is that ‘When you reach your State Pension Age (SPA), you do not have to claim your State Pension straight away.
You can defer claiming the benefit. In return (although there are some exceptions), when you do decide to draw your State Pension, as long as you have put off claiming for at least 5 weeks, you will receive an extra State Pension at a rate higher than would have applied at your SPA. Alternatively, if you have given up your State Pension continuously for at least 12 months, you can choose to receive a lump sum.
You need not take action to defer your State Pension. By not making a claim, your State Pension will automatically be deferred. When you want your State Pension to begin, you need to submit a BR1 claim form to the Pension Service.
Deferring a State Pension Already In Payment
You can still take advantage of the deferral options by electing to give up your pension for a period. However, you can only give up your State Pension once and you should normally be resident in the UK. If you are not resident in the UK, you would normally only be permitted to give up your State Pension to earn an extra state pension or lump sum, if you are living in one of the following countries:
Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Northern Ireland, Norway, Poland, Portugal, Republic of Ireland, Slovakia, Slovenia, Spain, Sweden and Switzerland (source the pensions advisory service).
Further details on deferring your state pension can be found here, courtesy of the directgov website.
I hope that helps
Best Wishes
Damien
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