You may be able to boost your state pension, by deferring it rather than taking it earlier. And you can choose when to defer it, you don’t have to do it before you start taking the pension. This rarely mentioned option could boost your income in retirement by hundreds of pounds each year.
BT’s website reports –
“If you reached state pension age before April 6 2016 you’re eligible for the basic state pension and you can get 1% extra for every five weeks that you delay claiming it. This amounts to 10.4% for every full year you put it off… So for someone getting the full basic state pension of £119.30 a week or £6,203.60 a year, delaying for 12 months will get you an extra £645 a year… You can choose to take this extra income through higher weekly payments. Alternatively, you can go for a one-off lump sum option… If you reach state pension age on or after April 6 2016 you can get 1% extra for every nine weeks you defer the new state pension. This equates to a 5.8% boost if you delay for a full year… So for someone getting the full new state pension of £155.65 a week or £8,093.80 a year deferring for a year will earn an extra £468, which you take through higher weekly payments… Those who reach the state pension age on or after April 6 2016 don’t have the option of a one-off lump sum payment.”