Updated: 27 December 2025

State Pension Deferral Calculator

Calculate how much your State Pension would increase if you defer claiming it, plus break-even analysis to help you decide if it's worthwhile.

Calculate Deferral Increase

Enter the number of weeks you plan to defer (minimum 9 weeks). 52 weeks = 1 year.

Leave blank to use the full State Pension amount (£230.25 for 2025/26).

How Deferral Works

You can choose not to claim your State Pension when you reach State Pension age. For each 9 weeks you defer, your pension increases by 1% - approximately 5.8% for each full year.

Key Points

  • Minimum deferral: 9 weeks
  • No maximum - defer for as long as you like
  • Increase: 1% for every 9 weeks (5.8% per year)
  • The increase is permanent and applies for life
  • Your increased pension still gets annual uprating

When Deferral Makes Sense

Deferring might be right for you if:

  • You're still working and don't need the money now
  • You have other income sources
  • You're in good health and expect to live well beyond the break-even point
  • You want a higher guaranteed income later

When NOT to Defer

Deferring may not make sense if:

  • You need the money now
  • You have health concerns
  • You can invest the money elsewhere for better returns
  • You won't live long enough to reach the break-even point

Understanding Break-Even

The break-even point is when the extra you receive from deferring equals the amount you gave up by not claiming.

Example

If you defer for 1 year (52 weeks):

  • You forgo: £230.25 × 52 = £11,973
  • Your pension increases by: £13.37/week (£695/year)
  • Break-even: approximately 17 years
  • You need to live to age 83+ (if State Pension age is 66) to benefit

No Lump Sum Option

For the new State Pension (if you reached State Pension age on or after 6 April 2016), you cannot take the deferred amount as a lump sum. You only get an increased weekly payment.

The old system (pre-April 2016) did allow lump sums if you deferred for 12+ months, but this doesn't apply to most people now.

Tax Considerations

  • State Pension is taxable income
  • A higher pension means more tax (if above Personal Allowance)
  • Consider your total income when deciding

Can I Change My Mind?

Once you start claiming, you cannot go back and defer. However:

  • You can choose to defer at any time after reaching State Pension age
  • You can stop deferring and start claiming whenever you want
Important: This calculator is for the new State Pension. Different rules apply if you reached State Pension age before 6 April 2016.

Next Steps