Thousands of British pensioners might be losing out on significant sums from their state pension due to an often-overlooked government rule, experts warn.
The Hidden Pension Boost You Might Be Missing
Recent analysis reveals that many retirees fail to claim the full state pension amount they're entitled to because they don't know about the option to defer payments. By postponing when you start receiving your state pension, you could boost your weekly payments by nearly 6% for each year you delay.
How the Deferral System Works
The Department for Work and Pensions (DWP) allows pensioners to:
- Delay claiming their state pension beyond the official retirement age
- Earn an extra 1% for every nine weeks of deferral
- Potentially increase their annual income by hundreds of pounds
"Many people automatically claim their state pension as soon as they're eligible without realizing they could get more by waiting," explains financial expert Sarah Coles.
Who Benefits Most From Deferring?
This strategy works particularly well for:
- Those who continue working past retirement age
- Pensioners with other income sources
- People in good health who expect a long retirement
Important note: The rules changed in 2016, so the benefits differ depending on when you reached state pension age.
How to Check If You're Missing Out
The DWP doesn't automatically inform people about deferral options. To see if you could benefit:
- Contact the Pension Service for a state pension forecast
- Use the government's online pension calculator
- Consult a financial advisor specializing in retirement planning
With the cost of living crisis squeezing household budgets, ensuring you receive every penny of your entitled pension income has never been more crucial.
