You achieve a full UK state pension after accumulating 35 years social security credits. The full state pension is currently £179.60 per week or £9,371.27 per year. This will increase in April 2022.
Deferring State Pension:
By deferring, your State Pension will increase every week you defer, as long as you defer for at least 9 weeks.
It will be increased by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every 52 weeks and 11.56% if you defer for 2 years i.e., 104 weeks.
The extra amount is paid with your regular State Pension payment.
Example: You get £179.60 a week (full state pension for 2021/22). By deferring for 1 year (52 weeks), you will get an extra £10.42 per week (just under 5.8% of £179.60).
What is the break-even point?
Age |
State Pension from Age 67 + inflation 2.5%pa |
Cumulative Total Received from Age 67 |
Defer State Pension to Age 68 = 1 year = £10.42 pw extra + inflation 2.5%pa |
Cumulative Total Received from Age 68 |
Defer State Pension to Age 69 = 2 years = £20.76 pw extra + inflation 2.5%pa |
Cumulative Total Received from Age 69 |
67 |
£9,371.27 |
£9,371.27 |
£0.00 |
£0.00 |
£0.00 |
£0.00 |
68 |
£9,605.55 |
£18,976.82 |
£10,160.94 |
£10,160.94 |
£0.00 |
£0.00 |
69 |
£9,845.69 |
£28,822.51 |
£10,414.96 |
£20,575.90 |
£10,925.21 |
£10,925.21 |
70 |
£10,091.83 |
£38,914.35 |
£10,675.34 |
£31,251.23 |
£11,198.34 |
£22,123.55 |
71 |
£10,344.13 |
£49,258.47 |
£10,942.22 |
£42,193.45 |
£11,478.30 |
£33,601.85 |
72 |
£10,602.73 |
£59,861.21 |
£11,215.77 |
£53,409.23 |
£11,765.26 |
£45,367.11 |
73 |
£10,867.80 |
£70,729.01 |
£11,496.17 |
£64,905.40 |
£12,059.39 |
£57,426.49 |
74 |
£11,139.50 |
£81,868.50 |
£11,783.57 |
£76,688.97 |
£12,360.87 |
£69,787.37 |
75 |
£11,417.98 |
£93,286.48 |
£12,078.16 |
£88,767.13 |
£12,669.89 |
£82,457.26 |
76 |
£11,703.43 |
£104,989.92 |
£12,380.12 |
£101,147.25 |
£12,986.64 |
£95,443.90 |
77 |
£11,996.02 |
£116,985.93 |
£12,689.62 |
£113,836.86 |
£13,311.31 |
£108,755.21 |
78 |
£12,295.92 |
£129,281.85 |
£13,006.86 |
£126,843.72 |
£13,644.09 |
£122,399.30 |
79 |
£12,603.32 |
£141,885.17 |
£13,332.03 |
£140,175.75 |
£13,985.19 |
£136,384.49 |
80 |
£12,918.40 |
£154,803.57 |
£13,665.33 |
£153,841.09 |
£14,334.82 |
£150,719.31 |
81 |
£13,241.36 |
£168,044.93 |
£14,006.96 |
£167,848.05 |
£14,693.19 |
£165,412.51 |
82 |
£13,572.39 |
£181,617.32 |
£14,357.14 |
£182,205.19 |
£15,060.52 |
£180,473.03 |
83 |
£13,911.70 |
£195,529.02 |
£14,716.07 |
£196,921.26 |
£15,437.04 |
£195,910.06 |
84 |
£14,259.50 |
£209,788.52 |
£15,083.97 |
£212,005.23 |
£15,822.96 |
£211,733.03 |
85 |
£14,615.98 |
£224,404.50 |
£15,461.07 |
£227,466.30 |
£16,218.54 |
£227,951.56 |
86 |
£14,981.38 |
£239,385.88 |
£15,847.60 |
£243,313.89 |
£16,624.00 |
£244,575.56 |
87 |
£15,355.92 |
£254,741.80 |
£16,243.79 |
£259,557.68 |
£17,039.60 |
£261,615.16 |
88 |
£15,739.82 |
£270,481.62 |
£16,649.88 |
£276,207.56 |
£17,465.59 |
£279,080.75 |
89 |
£16,133.31 |
£286,614.93 |
£17,066.13 |
£293,273.68 |
£17,902.23 |
£296,982.98 |
90 |
£16,536.64 |
£303,151.57 |
£17,492.78 |
£310,766.46 |
£18,349.78 |
£315,332.76 |
The weekly increase examples assume there is no annual increase in the State Pension. If there is an annual increase, the amount you could get could be larger. |
Broadly speaking, the break-even point will be around 15 years although higher inflationary state pension increases may reduce this.
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