Martin Lewis has shared a tip which could help you avoid tax on your state pension - and it could see you get an extra £667 a year in your pension pot
Martin Lewis, the founder of Money Saving Expert, has shared a lesser-known tip that could help you avoid paying tax on your state pension. He explained that anyone receiving the state pension, whether it's the New State Pension or the Basic State Pension, can increase their pension pot if they live long enough by deferring their pension.
However, if you're still working, your state pension would be taxed at your normal rate. For instance, if you're earning over £51,270, you'd lose 40 percent of your state pension income to tax., not claiming it for a year or more - you'll add 5.8 percent to your state pension pot for every year you don't claim it, which equates to an extra £667 a year.
He went further, saying: "So if you're in poor health, it's not really worth considering. If you're in great health with a history of family longevity, deferring could be a winner."
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