Should You Delay Your State Pension?

Thousands of people choose to delay claiming their State Pension every year. While this decision can offer certain benefits – particularly around tax planning and increasing your future income – it isn’t always the right move.

What is the State Pension?

The State Pension is a regular government payment you can receive once you reach State Pension age, providing an income for the rest of your life.

The current State Pension age is 66, although it is gradually rising and expected to reach 68 in the future. In the 2026/27 tax year, the full new State Pension is £241.30 a week, though the exact amount you receive will depend on your National Insurance record.

If you’re unsure how much you might get, you can check your entitlement using the government’s State Pension forecast tool.

Can you delay your State Pension?

Yes – you don’t have to claim your State Pension as soon as you reach State Pension age. If you choose to delay your State Pension, your payments will increase when you eventually start claiming.

In fact, data suggests this is a relatively common decision. According to Royal London, almost 42,000 people deferred their State Pension in 2023/24, with many postponing for several years.

2 reasons you might delay your State Pension

You’ll receive higher payments later

One of the main reasons people delay their State Pension is to increase the amount they receive in the future.

For every nine weeks you defer, your State Pension increases by 1% – equivalent to just under 5.8% for a full year.

For example, if you had deferred a full new State Pension of £230.25 a week for a year, you would receive around £13.35 extra per week when you begin claiming.

Depending on your circumstances, you may also be able to receive part of this increase as a lump sum.

Delaying your State Pension could be tax-efficient

Another reason to consider delaying your State Pension is to manage your tax position more efficiently.

Your State Pension counts as income, which means it could push you into a higher Income Tax band – particularly if you’re still working or drawing income from other sources.

By deferring your State Pension, you may be able to:

Keep your income within a lower tax band
Reduce your overall tax liability in the short term
Better coordinate your income across different sources

However, this depends entirely on your personal circumstances, so it’s important to assess this carefully.

2 drawbacks to consider before you delay your State Pension

You may not break even

While delaying your State Pension increases your future payments, it can take a long time to make up for the income you’ve given up.

According to government estimates, it can take more than 15 years to recover just 12 months of deferred State Pension payments. The longer you delay, the longer it may take to break even.

This means that if you don’t live long enough to benefit from the increased payments, you could receive less overall.

Higher income later could increase your tax liability

Although delaying your State Pension may reduce tax in the short term, it could have the opposite effect later in retirement.

In 2026/27, the full new State Pension is £12,547.60 per year – just below the Personal Allowance of £12,570. Even a small increase from deferral could push your income above this threshold, especially when combined with other income sources.