State Pension Deferral

State Pension Deferral

State Pension deferral simply means delaying your State Pension when you reach your normal State Pension age, or choosing to stop claiming it after you have already claimed it. This allows you to build up extra income or a taxable lump-sum payment.

You might do this if your income was placing you into a higher rate tax position.

The State Pension age is set by law and is currently 60 for a woman born on or before 5 April 1950 and 65 for a man born before 6 April 1959. You cannot get your State Pension before State Pension age, even if you retire from your employment before State Pension age. For women born on or after 6 April 1950, State Pension age will begin to increase from April 2010 so that by 2020, both men and women will have the same State Pension age of 65.  From 2024 onwards through to 2046, the State pension age for both men and women will rise 68.

The State Pension Age (SPA) is the earliest age you can draw your State Pension. Your SPA is specific to your date of birth.

Historically, the SPA has been 60 for women and 65 for men. However, these are changing.

Between 2010 and 2020 women’s retirement ages are increasing to 65.

Between 2024 and 2026, retirement ages for men and women are increasing to 66.

Between 2034 and 2036, retirement ages for men and women are increasing to 67.

Between 2044 and 2046, retirement ages for men and women are increasing to 68.