Reader’s Question – Deferring a state pension

1 min read Published: 27 Oct 2010


Dear sir,

I will receive my state pension in two years time. Currently I receive a pension from my old employers. Can I commute or increase my state pension


My Response:

First off, in answer to your question of whether you can increase your state pension the answer is contained in my post Reader’s Question – How do I boost my state pension?

With regard to commuting your state pension, while you can’t commute your pension in the true sense (i.e. take a reduced pension in return for a cash lump sum) you can opt to defer your state pension.

In return (although there are some exceptions), when you eventually decide to start drawing your State Pension, as long as you have put off claiming for at least 5 weeks, you will receive either a higher State Pension (than you would have got if you don’t defer) or alternatively you can choose to receive a lump sum, assuming you have given up your State Pension continuously for at least 12 months,

Full information can be found on the Pension Advisory Website.

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