Deferring your state pension

You don't have to start claiming your State Pension the day you reach state pension age. You can put it off — "defer" it — for months or years, and in return the government adds extra to your payments once you do claim. For many people still earning a good income, deferring can also mean avoiding paying extra income tax on pension income they don't yet need. But it isn't automatically the right call for everyone: it depends on your health, your other income, and how long you expect to draw the pension for. This section explains how the extra amount is calculated, whether deferring tends to pay off, and what happens if you keep working while you delay your claim.