State pension delay can be a winner

PUTTING back the date at which you draw your state pension can boost its value, as state pensions rise by 1 per cent of the weekly state pension rate for every five weeks of deferral

This extra benefit is paid on top of the normal weekly benefit and rises in line with the normal state pension at the beginning of each tax year.

So if you defer on a £105 a week state pension for five years, for example, your weekly payout would rise to £159.60 a week when you start drawing it.

If you defer for at least a year you are entitled to a lump sum that is based on the normal weekly benefits you would have received, plus interest at 2 per cent above the base rate. The increase is not available where benefits such as incapacity benefit, carers allowance or severe disablement allowance are drawn. Some other benefits are affected when a state pension is deferred.

For example, while winter fuel payments remain forthcoming, the £10 Christmas bonus is not.

• For more on this, call the Pension Service on 0845 6060265.