• State pension deferral rate to be reduced to 5.8% per annum

    State pension deferral rate to be reduced to 5.8% per annum

    Pension’s Minister, Steve Webb, recently announced that the annual State pension deferral rate will be reduced from 10.4 % to 5.8 % when the new State pension is introduced in April 2016. Pensioners who choose to defer claiming their State pension when they reach State pension age may get extra State pension when they do eventually claim. Currently, State pensions increase by 1% for every five weeks that a claim is deferred. This is the same as 10.4 % for every full year in which a claim is deferred. The announcement means that State pensions will increase by 1 ...