Updated on 6 April 2026

Putting off (deferring) claiming the state pension

Many people claim their state pension as soon as they reach state pension age. But you have the option of deferring your pension. State pension deferral means that you delay claiming, or stop receiving your state pension, until a time that suits you.

a person holding a piggy bank and inserting a card with the words 'STATE PENSION' into the piggy bank

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Overview

Deferring your state pension means that you don’t claim it when you become entitled to it upon reaching state pension age. This may mean that you get extra money from the state pension in the future as a one-off payment or increased regular payments.

The rules surrounding state pension deferrals are different depending on whether you reached state pension age before or after 6 April 2016. You can use the calculator on GOV.UK to find out your state pension age.

If you reached state pension age before 6 April 2016, you can take the extra money as a single lump sum payment or as extra state pension paid with your regular payments.

If you reach state pension age on or after 6 April 2016 and decide to defer claiming, you can only get extra state pension with your regular payments. No enhanced lump sum is available for deferrals, but you do have the option to delay claiming your state pension for up to 12 months and receive a backdated payment instead.

Reasons to defer

There are many reasons why you might choose to defer your state pension. Some of the most common might be:

There is no financial need for you to take the income immediately and you regard the financial terms for deferral offered by the Pensions Service as an attractive form of saving.
You are putting off claiming state pension until you have stopped working and may then pay no tax (or a lower rate of tax) on an increased regular state pension because of the overall reduction in your income each year.
You are using deferral as a method of saving tax by converting taxable pension into a lump sum which may be tax-free or taxed at a lower rate when you later receive it. The exact tax treatment will depend on your circumstances when you take the lump sum (note: a lump sum is only available if you reached state pension age before 6 April 2016).
You are using deferral as a method of receiving a better value from your state pension if you are resident in a country where the UK does not give annual increases, for example, Australia.

You will need to consider your overall position before deciding to defer claiming the state pension. This guidance is intended to cover the tax consequences of a deferral. It should not be taken as a recommendation to defer. You should consider taking financial advice.

How to defer

To defer claiming your state pension you do not have to do anything. The Pension Service will write to you before you reach state pension age with information about claiming your state pension. If you do not claim the state pension it will automatically defer.

Stopping deferral

What happens when you stop deferring your state pension depends on when you reach state pension age.

State pension age before 6 April 2016

If you reached state pension age before 6 April 2016, deferring your state pension would give you two possible options when you decide eventually to claim it.

When you tell the Pension Service that you would like to claim your deferred state pension, they will write to you asking which of the two options you wish to go for. You have three months to decide.

These options are detailed on GOV.UK and also summarised below. Note that you cannot choose to receive a combination of the extra state pension and the lump sum.

Extra state pension

You can earn extra state pension at 1% of the weekly pension for every five weeks you put off claiming. For each full year you defer you will receive around 10.4% extra state pension.

If you go for this option, the increased pension is just taxed as normal from the point of claim. We explain more about this below under the heading: Tax effect of deferral.

Lump sum payment

You can choose to take a one-off taxable lump sum rather than an increased regular rate of pension, as well as starting to receive your regular state pension payments. The amount of the lump sum is the amount of state pension not claimed plus interest which is added each week and compounded at a rate of 2% above the Bank of England's base rate. This means that the lump sum you receive is more than the total of the regular state pension payments you would have received if you had claimed the state pension when you were first entitled to. To get a lump sum, you have to put off claiming your state pension for at least 12 consecutive months.

The lump sum is taxable, because the state pension is taxable income. However, it is not taxed in quite the same way as regular state pension income.

You can choose to receive the lump sum in the tax year you stop deferring, or you can delay the payment of the lump sum to the following tax year – which, depending on your circumstances, may be more beneficial for tax purposes. There is more information on how state pension lump sums are taxed below under the heading Tax effect of deferral and on our page Tax on deferred state pension lump sums.

Example – pre- 6 April 2016 state pension lump sums

Fred deferred his state pension from 6 April 2015. In May 2026 he stopped deferring and claims his pension. He informs the DWP’s Pensions Service of this decision. So, from May 2026 he is paid his normal state pension.

He then received a notice which explains that he could choose to receive some extra state pension or he could choose to receive a lump sum. The notice also explains that he has three months from the date on the notice to make his decision.

He waits until July 2026 before choosing a lump sum. The lump sum that had accrued to him between 6 April 2015 and May 2026 is paid to him shortly afterwards. His lump sum is taxable in the 2026/27 tax year.

Reach state pension age on or after 6 April 2016

If you reached state pension age on or after 6 April 2016 and decided to defer claiming, any built up entitlement to state pension is paid to you as extra state pension – so your regular payment will be increased.

The rate of increased state pension in this case will be 1% for every nine weeks of deferral. For example, if you defer your state pension of £100 for the minimum period of nine weeks, your state pension would increase by £1 (which is 1% of £100) to £101 a week from week ten when you start to take it. For each full year you defer you will receive around 5.8% extra state pension.

The extra pension will be paid with your normal state pension and taxed in the usual way, as explained below.

Unlike people who reached state pension age by 5 April 2016, you do not have the option to receive a lump sum at an increased rate. However, you are able to backdate your state pension claim by up to 12 months if you wish.

Tax effect of deferral

The state pension, including any extra state pension, is taxable income even though no tax is deducted before it is paid to you. HM Revenue & Customs (HMRC) take it into account when they set your Pay As You Earn (PAYE) code for any other private pension income you might have.

If your total taxable income, including your state pension, is less than the personal allowance (£12,570 for 2026/27), no tax will actually be payable. We explain tax on the state pension further on our page How tax is collected on the state pension.

If you reached state pension age before 6 April 2016 and choose to take a state pension lump sum, it will be taxable in the tax year in which you eventually decide to claim it or, in certain circumstances, the following year. The tax rate on your lump sum will not exceed the rate at which you are already paying income tax.

For more information on the taxation of state pension lump sums see our page Tax on deferred state pension lump sums.

Further information

The DWP have published a guide on GOV.UK on deferring your state pension, for those who reached state pension age before 6 April 2016.

GOV.UK has more general information on the basic state pension.

GOV.UK has more information about the new state pension – if you reach state pension age on or after 6 April 2016.

The government’s MoneyHelper website has guidance on choosing a financial adviser and you may also consider using their Pension Wise service.