The state pension is an important income stream for many older Britons but some people choose to defer receiving their state pension so their payments will be bigger later on.
The full basic state pension is currently £156.20 a week while the new state pension is £203.85 a week.
A person typically needs 30 years of National Insurance contributions to get the full basic state pension and 35 years of contributions to get the full new state pension.
The basic state pension is for men who were born before April 6, 1951 and women born before April 6, 1953, while those born after these dates will receive the new state pension.
The current state pension age is 66 although this is increasing to 67 between 2026 and 2028 and to 68 between 2044 and 2046.
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How much extra state pension payments can you get by deferring?
People who reached their state pension age on or after April 6, 2016, will get an increase to their state pension for each week it is deferred, provided it has been deferred for at least nine weeks.
In this case, the state pension increases by one percent for each nine weeks it is deferred, or just below 5.8 percent for the 52 weeks of a year.
Those who reached state pension age before April 6, 2016, will see their pension go up for each week it is deferred once it has been deferred for at least five weeks.
Their state pension will go up by one percent for each five weeks it is deferred, which is a 10.4 percent increase for each 52 weeks.
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Individuals who reach state pension age before April 6, 2016, can receive their extra state pension as a one-off lump sum or as higher weekly payments.
But those who reached state pension age after April 6, 2016, can only get the extra amount with their regular payments when they start to claim their state pension.
What are the advantages and drawbacks of deferring the state pension?
A person will need to consider their particular situation to work out if it is worthwhile deferring their state pension.
People who claim their state pension as soon as they are eligible will get access to more cash to spend during their retirement.
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If they have a pressing financial need around that time, the payments will help towards covering those costs.
Romi Savova, CEO of PensionBee, previously told Express.co.uk there may be some benefits for holding off claiming the support.
She said: “However, as the state pension can’t usually be taken until around a decade after workplace or personal pensions, there’s a chance that some people might not need to access it immediately upon reaching the age of 66.
“If a saver has a retirement income from other sources or is still working, it could be to their financial benefit to defer receipt of the state pension.
“Delaying the state pension by just a few weeks could result in a higher weekly state pension amount, or even a lump sum payment.
“As with all pensions, timing is everything and I would encourage savers to only withdraw what they need, at the time they need it, in order to ensure their money lasts well into retirement.
“The longer a saver can afford to delay, the more they are likely to receive in later life.”
People can also increase their state pension payments by voluntarily buying National Insurance contributions.
A person can find out how much state pension they are on track to receive using the state pension forecast tool on the Government website.
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