§ James PurnellTo ask the Secretary of State for Work and Pensions what the arrangements and procedures are for deferring the basic state pension. [84449]
§ Mr. McCartneyEntitlement to the state pension arises when a person attains state pension age but to be entitled they have to make a claim. They can put off claiming their state pension to earn increments. When they claim, each part of the state pension is increased by about 7.5 per cent, for each full year of deferral. The minimum period of deferral is seven weeks.
Currently the maximum period for deferral is five years but from April 2010 there will be no time limit and the incremental rate will increase to about 10.4 per cent, for each full year.
It is up to the individual to decide whether to claim their state pension at state pension age or to defer claiming. A person can choose to defer either by writing to the Pension Service to request deferral or by not returning their claim for a state pension.