dodi
Apprentice
Joined: 20 Dec 2003
Posts: 10
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 Posted: 01/21/08 - 23:49 Post subject: |
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| State pension deferral means that when you reach your state pension age you don't have to claim your state pension right away, you can choose to delay claiming your state pension. By doing this you will receive an increased state pension when you decide to draw your state pension. If you defer your state pension for 12 months you can choose to receive a cash sum. This is a good option if you have some savings and you don't need a state pension straight away. If you decide to defer your state pension, your pension will be increased at a rate of 1% for every 5 weeks you put off delaying drawing it. Another words, you will up to 10.4% extra a year. When you decide to draw your pension you will have two options. You will be able to take increased pension or a cash sum. You will have to decide which option best suits your needs. The main difference is that if you decide to take an increased state pension it will be payable for the rest of your life. On the other hand, if you elect a cash sum, it will be one time payment and your weekly pension will then be paid at the normal rate. |
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