Answers · UK 2025/26
How does deferring your State Pension work in the UK?
You can defer your State Pension beyond your State Pension Age. For every 9 weeks you defer, the pension increases by 1% (about 5.8% per year). On the new State Pension of £241.30/week, one year's deferral adds roughly £14/week (£728/year) for life.
Full answer
**Deferring your State Pension** means delaying when you start claiming it beyond your **State Pension Age** (currently 66 for both men and women). In return, HMRC increases your weekly pension amount. **Deferral rate:** - **1%** increase for every **9 weeks** deferred - Equivalent to approximately **5.8% per year** **Example (2026/27 full new State Pension: £241.30/week):** | Deferral period | Weekly increase | Annual increase | |---|---|---| | 6 months | ~£7/week | ~£364/year | | 1 year | ~£14/week | ~£728/year | | 2 years | ~£28/week | ~£1,456/year | **No lump-sum option since 2016:** Under the old State Pension rules, deferring allowed you to take a lump sum instead of a higher weekly pension. This option was **abolished on 6 April 2016** for the new State Pension. Deferral now only increases the weekly amount. **When does deferral pay off?** The breakeven point depends on your tax rate and life expectancy: - At the standard deferral rate of ~5.8%/year, the breakeven period is approximately **17–20 years** of pension receipt - At current State Pension Age of 66, you would break even at around age 83–86 **Tax treatment:** The additional pension from deferral is taxable income in the same way as your regular State Pension — it counts toward your income tax assessment. **Impact on means-tested benefits:** Deferring does not affect entitlements during the deferral period (you simply don't receive the pension). Once you claim, the higher pension income may reduce entitlement to means-tested benefits such as Pension Credit. **How to defer:** Simply do not claim your State Pension when you reach State Pension Age. The DWP will write to you in advance — just don't return the claim form. You can start claiming at any time. **Overseas deferral:** UK citizens living abroad can also defer. However, the annual **triple lock uprating** is only applied if you live in certain countries (EEA, countries with a reciprocal agreement, or the UK).
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.