hutchiebug

Hello - I have a question.

I sent off my State Pension app, to start 1SEP14. Yesterday I received an estimate from the Pension Service. However, it was just for my State Pension, with no mention of my five years deferrment.

I called the Pension Service this morning and was told that the extra State Pension estimate (my deferred years credit) letter would come closer to the date I'll receive my pension. He explained it is a two-step process, first the basic State Pension calculation and then the Extra Pension calculation, whether it be lump sum or extra payment every week.

Has anybody else deferred their pension and had two separate estimate letters?

Thank you,

Hutchiebug
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hutchiebug

I knew you'd all be wondering about this, so for you folks who are deferring their state pension thought I'd update my question with what I found out from the Pension Service.

On the day my basic state pension is due to start (1 Sep), they will calculate my extra (deferred) pension on that day, based on Bank of England interest rates and will add it to my basic state pension.

MMcD

hmmm...that doesn't seem right:
You should be informed ahead of time as you have a choice to make - which is whether:
1. To take a lump sum with respect to the deferred amount owed or whether..
2. To receive what they call "Extra State Pension". This is an additional amount paid together with your regular periodic payments.

Or have you already informed them of your decision - without knowing the amounts involved?
In which case, perhaps I'm mistaken about the timing.

hutchiebug

I was told I'd be offered that choice closer to 1 Sep.

MMcD

Just be sure you are - and that you actually sign off on a choice (and have sufficient time to make it)

Their lack of clarity caused me to inadvertently do something I never intended (in fact, didn't do at all)...but couldn't be bothered to battle it out a continent apart and 8 hrs. behind