It surveyed 1,050 retired and semi-retired people to assess knowledge of the ability to defer the State Pension to enhance its value.
Its research showed that women (at 26%) were significantly more likely than men (19%) not to know about the possibility of deferring the State Pension, while 26% of those aged 75+ also did not know deferral was an option.
Only 7% of over-55s said they had used State Pension deferral themselves.
Those who reach State Pension age on or after 6 April 2016 can benefit from a 1% increase in their weekly state pension for every nine weeks that payments are deferred, equivalent to nearly 5.8% extra income for every full year deferred.
With the Triple Lock boosting the annual state pension to £221.20 a week from April for this younger cohort of state pensioners, those who defer their payments for the 2024/2025 financial year will benefit from an extra £12.78 a week – which works out at £664.58 of additional payments across an entire year, Just pointed out.
Those who reached State Pension age before 6 April 2016 and deferred are treated more generously, with an extra 1% state pension income for every five weeks deferred, equal to an annual rise of 10.4% or £916.66, which can be taken either as extra income or a lump sum.
New State Pensioners (turned State Pension age on or after 6 April 2016) |
||||||
Year |
Weekly non-deferred state pension |
Weekly deferred state pension |
Weekly difference (£) |
Annual non-deferred State Pension |
Annual deferred State Pension |
Annual difference (£) |
April 2024- March 2025 |
£221.20 |
£233.98 |
£12.78 |
£11,502.40 |
£12,166.96 |
£664.58 |
Source: Just Group / Govt data
Old State Pensioners (turned State Pension age before 6 April 2016) |
||||||
Year |
Weekly non-deferred state pension |
Weekly deferred state pension |
Weekly difference (£) |
Annual non-deferred State Pension |
Annual deferred State Pension |
Annual difference (£) |
April 2024- March 2025 |
£169.50 |
£187.13 |
£17.63 |
£8,814 |
£9,730.66 |
£916.66 |
Source: Just Group / Govt data
Stephen Lowe, group communications director at Just Group, said: “Deferring can be good option for people who don’t need the income immediately – perhaps because they are still working or have other sources of cash – so it is disappointing a quarter of those approaching State Pension age don’t know about the option.”
• Just Group survey of 1,050 UK adults aged 55+ and retired/semi-retired conducted by conducted by Opinium between 17 and 27 August 2023.
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