Answers · UK 2025/26
What is State Pension deferral and is it worth it?
Deferring your State Pension means delaying when you start claiming it. For every 9 weeks you defer, your weekly payment increases by about 1% -- roughly 5.8% for a full year of deferral. On the 2026/27 full new State Pension of £241.30/week, a year's deferral adds around £14/week for life. It suits people who keep working, have other income, or expect a long retirement.
Full answer
You do not have to start claiming your State Pension the moment you reach State Pension age. If you carry on working, have enough other income, or simply do not need it yet, you can defer -- and in return the government increases the weekly amount you eventually receive. **How the increase is calculated** Under the new State Pension (for people reaching State Pension age from 6 April 2016), your pension increases by about 1% for every 9 weeks you defer, which works out at approximately 5.8% for a full 52-week year of deferral. This increase is added permanently to your weekly pension for the rest of your life, and subsequent triple-lock uprating is calculated on top of the higher base amount. **Worked example** On the 2026/27 full new State Pension of £241.30/week (£12,548/year), deferring for exactly one year increases your weekly amount by roughly 5.8% -- about £14/week, or £728/year. If you defer for two years, the increase roughly doubles to around £28/week extra (subject to exact weekly compounding). **Lump sum option removed** Under the old (pre-2016) basic State Pension system, deferring for at least 12 months allowed you to take a one-off taxable lump sum instead of a higher weekly rate. This lump-sum option was abolished for the new State Pension -- anyone reaching State Pension age from 6 April 2016 can only get the higher ongoing weekly rate, not a lump sum. **When deferral makes sense** - You are still working and do not need the extra income, especially if it would push you into a higher tax band. - You have other pension income or savings to live on in the short term. - You are in good health and expect an above-average life expectancy, since deferral only pays off if you live long enough to recoup the deferred payments through the higher rate. - You want to reduce Income Tax on your State Pension in years you are still earning, then take a higher amount once you have retired and dropped into a lower tax band. **Break-even point** Broadly, if you defer for one year, it typically takes around 17 years of receiving the higher rate to fully recoup the year of payments you gave up -- so deferral is a long-term bet on your own longevity, not a guaranteed win. There is no requirement to formally apply to defer; simply do not claim your pension when you reach State Pension age, and it accrues the increase automatically. Use the State Pension forecast calculator to see your current entitlement before deciding.
Try the calculator
More answers
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.