Many people are unaware the option is available, and that means they face paying a lot of money to the taxman
People about to claim their state pension may find themselves suddenly paying a large amount of tax thanks to the personal allowance remaining frozen at £12,570 a year, while the state pension continues to rise due to the triple lock. But a tax expert has explained how you could avoid paying the tax - and boost your pension by hundreds of pounds a year in the process.
However, for those with other sources of income, deferring can bring significant tax benefits. Initially, deferring your state pension might mean forgoing income, but there are incentives. With the current full new state pension at £11,502 annually, holding off for a year could mean nearly an extra £665. This additional amount will increase annually with the rest of the state pension under the triple lock.
Deferring becomes particularly advantageous as life expectancy increases. "Deferral therefore suits those who are in better health with higher life expectancy," Lowe said.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Simple pension trick could stop you paying tax and make £665 a yearThe personal allowance is the amount of income you can earn without paying tax
Read more »
Warning millions missing out on more HMRC pension cash by not claimingA warning has been issued to pension contributors by Path Financial.
Read more »
HMRC loophole means everyone with a private pension can avoid taxPeople who have a pension have been issued a warning over a trick to backdate your tax
Read more »
New pension plans to give millions of savers £11,000 boost in King's SpeechThe new Pension Schemes Bill aims to support 15 million savers boost pension pots by £11,000
Read more »
Man begs HMRC to stop sending him letters - but advice leaves him baffledHe said he has received dozens of letter meant for someone else
Read more »
HMRC call for action issued about nine million pensioners across UKA huge 8.95 million pensioners are expected to be paying income tax by April, 2025 - up from 4.9 million in 2011, according to the latest figures from HM Revenue and Customs
Read more »