Deferring state pension

linga · Nov 4, 2023

Oliveau said:
I think its nearer 10% pa. I deferred mine by 5 years and the extra pension certainly makes a difference

Yes. Think you are right. No idea where 5.8% came from
Edit. Just looked again and I think it’s 10% if you reach retirement age before 2016 and 5.8% if you reach retirement age after 2016. Difference between Basic State Pension and New State Pension

yoki · Nov 4, 2023

Still Farming said:
Well it did.
My Mum was chuffed years ago as she had an increase in state pension.
Anyhow F me, that increase put people just over tax thresholds and thus more tax deductions than gained.

The government giveth and the government taketh away!

Netherfield · Nov 4, 2023

yoki said:
The government giveth and the government taketh away!

The Goverment giveth nothing, who's money is it in the first place.

yoki · Nov 4, 2023

Netherfield said:
The Goverment giveth nothing, who's money is it in the first place.

Of-course it's not their money, but they still decide who gets it and how much.

som farmer · Nov 4, 2023

OM deferred his, and never lived to draw it.

so l take my £208 a week, and say thankyou very much, also draw a disability payment, which is tax free. Drew my NFU pensions out, and built a bungalow a few years back, that has increased well over the value of the pension.

drew it out over 3 years, to avoid paying higher rate tax, something that needs to be considered, when drawing it out.

still live in the farmhouse, so have those 'benefits', but never really had so much 'disposable' cash before.

Baker9 · Nov 4, 2023

I'm due the state pension next April and I'll be taking it but I'm not getting the full amount despite 44 years contributions because I was contracted out of the state pension for 25 years as I was paying into a work place pension. The state part of my pension is being reduced by about £60 a week but I'm still be better off than my brother in law whose funeral I was at yesterday.
There is an awful lot of people who never see pension age so be happy you have made it this far,

Gedd · Nov 4, 2023

Baker9 said:
I'm due the state pension next April and I'll be taking it but I'm not getting the full amount despite 44 years contributions because I was contracted out of the state pension for 25 years as I was paying into a work place pension. The state part of my pension is being reduced by about £60 a week but I'm still be better off than my brother in law whose funeral I was at yesterday.
There is an awful lot of people who never see pension age so be happy you have made it this far,

Yep my father died at 64 so i would say take it while you can even if you pay a bit tax on it better than losing the lot

Aspiring Peasants · Nov 4, 2023

I’m due mine next April as well and I see taking it as a no brainer unless exceptional circumstances. Why would you want to be better off when your older and may not be able to enjoy it. At 66 the clock is starting to run down, live for today

Still Farming · Nov 4, 2023

Netherfield said:
The Goverment giveth nothing, who's money is it in the first place.

More drawing than contributing these days ☹

Still Farming · Nov 4, 2023

Baker9 said:
I'm due the state pension next April and I'll be taking it but I'm not getting the full amount despite 44 years contributions because I was contracted out of the state pension for 25 years as I was paying into a work place pension. The state part of my pension is being reduced by about £60 a week but I'm still be better off than my brother in law whose funeral I was at yesterday.
There is an awful lot of people who never see pension age so be happy you have made it this far,

What's your work place pension like then??

bobk · Nov 4, 2023

som farmer said:
OM deferred his, and never lived to draw it.

so l take my £208 a week, and say thankyou very much, also draw a disability payment, which is tax free. Drew my NFU pensions out, and built a bungalow a few years back, that has increased well over the value of the pension.

drew it out over 3 years, to avoid paying higher rate tax, something that needs to be considered, when drawing it out.

still live in the farmhouse, so have those 'benefits', but never really had so much 'disposable' cash before.

Kin hell , £208 a week , I'd better keep going , wunna pay the gin bill

Red Fred · Nov 4, 2023

Gedd said:
Yep my father died at 64 so i would say take it while you can even if you pay a bit tax on it better than losing the lot

My dad died at 64 after putting off taking holidays, etc, so he could enjoy it in retirement. I've lost quite a few friends over the last few years so I'm not deferring anything.

suffolksmallholder · Nov 4, 2023

My advisor told me that there is a positive percentage gain for deferring uptake.
SS

Still Farming · Nov 4, 2023

Yes millions not even claimed a penny or even made it.
Their the one's that did the true hard graff and contributions to keep the wasters in their life styles of today.☹

bobk · Nov 4, 2023

My wife's accountant retired in June , he's back already , you need a plan
You can't do nothing

JockCroft · Nov 4, 2023

Red Fred said:
My dad died at 64 after putting off taking holidays, etc, so he could enjoy it in retirement. I've lost quite a few friends over the last few years so I'm not deferring anything.

State Pension. Take it as soon as possible. Not just because you may not see tomorrow, but because you wont recoup what you give up for probably 20 years after starting to claim.

A Final Salary don't give you an option. Unlikely to be anything but a loss if converted to Managed Fund.

A private pension fund is completely different and needs good advice from an expert, if you can find one you can trust. Many of them are struggling to explain static or even falling values due to recent two years financial disruption. One tip given to me was that with a consolidated pension fund, if any cash is needed, draw from ISA's or savings accounts as in modest sums that is not taxable.
Be aware that the 25% tax free Lump sum from Pension fund while still in tax law is under review. Things like that are what makes expert advice sensible.

4course · Nov 4, 2023

bobk said:
Kin hell , £208 a week , I'd better keep going , wunna pay the gin bill

yours or mrs bobks the only way i can afford mrs 4courses gin bill its to go abroad every now and again to take advantage of the duty free . Its the only benefit of brexit ive found ,ho ho

4course · Nov 4, 2023

suffolksmallholder said:
My advisor told me that there is a positive percentage gain for deferring uptake.
SS

did he also know the date of your demise ?

Baker9 · Nov 4, 2023

Still Farming said:
What's your work place pension like then??

It was a defined contribution scheme where I made a substantial AVC from the beginning. I started paying into it in 1990 and was in it until 2020. It has done fairly well in my opinion and I am drawing from it now. It was a contracted out pension so I was paying a lower rate of National Insurance but the sting in the tail is this reduced my state pension, at the time when I started the pension the state pension was very poor so it was the wise thing to do then but the state pension has increased in recent years.
I talked to a few financial advisers and most of them I would not trust to go to the shop and bring back my change, I went with a man who was recommended to me by several very smart and wealthy people.

Lincs Lass · Nov 4, 2023

Take it now ,Ive known far too many that kept saying they were looking forward to retiring and never made it .
ive still got a few years to go but as soon as ,Ill be grabbing it .

Deferring state pension

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0 %

Up to 25%

25-50%

50-75%

75-100%

100% I’ve had enough of farming!

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