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Should you wait to claim your state pension?
Deferring your state pension can boost your payments
Thousands of people delayed claiming their state pension, according to the new figures obtained from the Department for Work and Pensions (DWP).
In the 2023-24 tax year, 41,938 people opted to defer their pension payments, down from 54,037 in the previous year.
The figures obtained through a Freedom of Information (FOI) request from Royal London showed that one in four pensioners postponed their state pension by five years or more, while 4,400 delayed it by more than a decade.
Deferring your state pension can lead to higher payments in the future, although it's not the right option for everyone.
Here, Which? explains the rules for deferring your state pension, how this will affect your payments, and highlights the pros and cons of the decision.
How long can you defer your state pension?
The FOI revealed that the average deferral rate period was four years. Those delaying their claim by this long would receive around an extra £50 a week, according to Royal London.
Around 590 people hadn’t claimed their state pension for 20 years or more after they were entitled to receive it. Some people waited even longer, with the average length of the 25 longest deferred claims sitting at 32 years.
The state pension is available to those in the UK who have reached the state pension age, currently 66 years, rising to 67 from this year. However, the amount received depends on your National Insurance record.
To qualify for any payment, you typically need at least 10 qualifying years and 35 years to receive the full amount – although some people may need more.
You can defer your UK state pension for as long as you like, as payments only begin when you claim. There's no maximum time limit, but you must defer for at least nine weeks to qualify for increased payments. How much extra you get will also depend on what state pension you claim.
It’s relatively easy to defer, as all you need to do is not claim it. You don't get it automatically when you reach the state pension age. You have to actively claim it to start receiving the monthly payments. You usually receive a letter from the Pensions Service around four months before you reach the state pension age.
- Find out more: state pension age calculator.
Deferring the basic state pension
If you reached state pension age before 6 April 2016, you have a choice between two rewards once you finally claim. You can either:
- Boost your weekly pension by 10.4% for each year you wait (minimum delay of five weeks)
- Take a one-off cash lump sum plus interest (minimum delay of 12 months).
Once you apply to start your pension, the government will send a letter giving you three months to decide which option you prefer.
While the weekly boost provides a higher weekly income, the lump sum is a single payment taxed at your current income tax rate of either 20%, 40% or 45%. For example, if your full pension is £176.45 a week and you delay for one year, you would receive an extra £18.35 every week, totalling an additional £954.20 a year.
If you prefer the lump sum, you will receive all the pension money you missed plus interest, currently set at 2% above the Bank of England base rate.
When the state pension rates rise in April 2026, the basic state pension weekly rate will rise to £184.90. A one-year deferral will add £19.23 a week to your payments, amounting to an extra £1,000 a year.
| Pension type | Full weekly rate 2025-26 | Annual increase | Minimum wait | Lump sum option | 1-year deferral amount |
|---|---|---|---|---|---|
| Basic state pension | £176.45 (rising to £184.90 a week in April 2026) | 10.4% (1% every five weeks) | Five weeks | Yes – after 12-month delay | £194.80 (£204.13 after April 2026) |
- Find out more: your state pension forecast explained.
Deferring the new state pension
If you reach state pension age after 6 April 2016, you'll qualify for the new state pension. The deferral terms under the new state pension are less generous and don't include a lump sum option.
Your pension increases by 1% for every nine weeks you delay, totalling just under 5.8% for a full year. For example, on a full pension of £230.25 a week, deferring for 52 weeks adds £13.35 to your weekly payments, giving you an extra £694.20 per year.
This extra amount is paid alongside your regular pension for as long as you claim it.
The new state pension will rise in April 2026 to £241.30 per week. Under the new rates, a one-year deferral will be worth approximately £14 extra per week or an extra £728 per year.
| Pension type | Full weekly rate 2025/26 | Annual increase | Minimum wait | Lump sum option | 1-year deferral amount |
|---|---|---|---|---|---|
| New state pension | £230.25 (rising to £241.30 a week in April 2026) | 5.8% (1% every nine weeks) | Nine weeks | No – weekly increases only | £243.60 (£255.30 after April 2026) |
- Find out more: how much is the state pension?
Pros and cons of deferring
Deferring your pension isn't the best move for everyone. Here are the pros and cons to consider:
Pros
- Higher weekly payments Delaying increases your starting income. For every year you defer, your state pension increases by 5.8% (new state pension) or 10.4% (basic state pension), giving you a higher income in your later years.
- Larger cash increases While the ‘extra’ deferral amount typically rises by the Consumer Prices Index measure of inflation, having a higher total starting pension means your annual cash increases will be larger than they would have been otherwise.
- Tax efficiency If you're still working, your state pension is added to your earnings and taxed. Deferring allows you to pause this income until you're in a lower tax bracket after you stop working.
- Continued pension growth You can continue to contribute to workplace or private pensions while deferring your state pension, further building your total retirement pot.
Cons
- Long break-even period For the new state pension, it typically takes 17 to 20 years of receiving the higher payments to recoup the money you gave up while waiting. If you don't live to your late 80s, you may receive less total money overall.
- Less money now Deferring means forgoing thousands of pounds in immediate income. If you have to dip into other savings or reduce your standard of living to compensate, the trade-off may not be worth it.
- Impact on means-tested benefits A higher weekly pension could disqualify you from Pension Credit. This is a major risk, as Pension Credit is the ‘gateway’ to other support, such as the Winter Fuel Payment, a free TV licence for over-75s and council tax reductions.
- No benefit for some claimants You don't build up the extra 5.8% or 10.4% if you or your partner are receiving certain benefits, such as Universal Credit, Pension Credit, Employment and Support Allowance (ESA) or Jobseeker's Allowance. In these cases, you'll simply receive the standard amount when you eventually claim.
- Tax on enhanced payments Any extra payments received from deferring could be taxed if it pushes your income over the personal tax allowance of £12,570 a year.
- Your state pension stops when you die Unlike private pensions, which can often be passed to beneficiaries, the state pension generally stops upon an individual’s death. While a spouse or civil partner may inherit some benefits in certain circumstances, the enhanced payments earned through deferral typically can't be passed on.
Find out more: what happens to my pension when I die?
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