§ 30. Lady Olga MaitlandTo ask the Secretary of State for Social Security what flexibility about the age of retirement is contained in the Government's state pension arrangements. [36985]
§ Mr. HealdOur aim is to maximise choice and flexibility in pension provision, whilst maintaining a balance between the interests of the taxpayer and of the pensioner.
Currently individuals can take advantage of the flexibility within the state scheme by deferring their state pension for up to five years after reaching state pension age. For each year of deferral, their pension will increase by seven and a half per cent.
In the Pensions Act 1995, we made provision to enhance this flexibility from 2010 by removing the limit on the number of years of deferral and increasing the incremental rate from 7.5 per cent. to 10 per cent. a year.