Break-Even Point When Defer your State Pension

Published / Last Updated on 14/02/2022

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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