Deferred State Pension Benefits

Question 1

Options available to David to take deferred state pension

Answer 1

• David reached state pension age before 6/4/16
• and he has deferred for more than 12 months
• so has option of taking income
• increased by 0.2% per week /10.4% per week
• or could take lump sum
• calculated as payments deferred
• increased by 2% over BOE base rate
• income would be taxable
• lump sum taxed at highest rate
• can’t increase the income tax band