A quarter (25%) of adults aged 55-64 are unaware of the state pension deferral option despite the fact they will soon be making important retirement choices, according to retirement specialists the Just Group.

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.

Source: Just Group / Govt data

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.