Deferring State Pension

I didn't think children inherited any of a parent's state pension - in fact I'm sure they don't!

I think the other partner does get some of it (if its a deferred amount) Ana (effectively money you would have had). But I agree I don't think children get anything.

I think this is wrong as it was money you would have had.

I saw no point in deferring when who knows what is round the corner. The money is lost when you die and as we have no idea if that is tomorrow or years away I preferred to have the money in my bank.

I'm in the same situation Oriel except there is only one of me. I'm pretty sure it's true, none of your pension passes to your children whether you defer or not. I'm not even sure that your OH would get anything. Surely as tanith says it's a gamble whether to defer, just like taking out insurance; you reap benefits by deferring but only if you win the bet!

I absolutely agree with tanith.Also a friend discovered that when she eventually received her pension she was paying more in tax than if she had not deferred.

No one inherits a state pension. Private pensions can be in part left to spouses and b recent law, to civil pArtners.
I'm satisfied with neither children or partners inheriting state pensions.

It technically isn't inheriting a state pension though Iam64 it is inheriting a deferred amount that you would have had in YOUR bank.

But surely the whole point is that it ISN'T in your bank - because the choice has been made to continue to defer thereby earning an increased pension.

The same applies surely to your comment Greenfinch - the reason for the higher tax is that by deferring she had a higher pension.

Iam64 spouses can inherit part of the deceased's State Pension.

Pension

Am I mistaken then that a widow , when both were over state pension age , will get an enhanced pension when she doesn't qualify in her own right?

X posts

The point of deferring is that you take a higher pension. The calculations have changed recently, but when we did it, you gained 2% for every 5 weeks you deferred (say 10% a year for back-of-fag-packet calculations). You can lso choose to tke it as a lump sum.

This is all on gov.uk, which of course, will be up-to-date.

I found the 'inheritance' rules confusing, but it looked to me as if a spouse would get 3 months' worth (had the pension not, at that point, been taken)
So, you take a gamble! If in good health, with no need to take the income, it is generally agreed that deferring is a good plan, but working out at what point to take it is a bit of a leap!
My fag packet thought that about 68 was a good time to take it for both me & DH, so we did.

PS: I do, of course realise, that many on here will not be taking their pension until 68 anyway, but in our cases, DH was eligible at 65, and me at 61.

I agree, nanna. I'm deferring my pension as still working, but the increase is 10% p.a. (it's now 5% for more recent people reaching state retirment age, I believe). Essentially after deferring I could either claim an enhanced pension, or the state pension I would have been entitled to originally + a lump sum equivalent; if I chose the lump sum, the amount would be equivalent to 10 years increase to the orgiginal pension. So if you expect to live for more that the next 10 years you're better off taking the enhanced pension, otherwise if e.g. you have an illness you can take the lump sum and the lower pension.

Clear as mud?!

Ana. Yes, I realise that the children wouldn't inherit my pension as such if I didn't defer it. The part I think is unfair though concerns the funds that would have been paid to me monthly if the choice to defer wasn't taken up. Obviously when I die my pension ceases. By deferring it appears that the monies I would have been paid monthly are put aside - why should the state get it if I die?

Perhaps I just don't understand the way the state pensions work.

It would seem like having your cake and eating it if someone else could inherit it .Surely the deferred pension is a reward for taking the risk factor involved.

devongirl that is exactly what I meant.

We were thinking of deferring our pension and read all sorts of articles. We decided in the end not to as it appeared that we would be about 80 something before we started to benefit.
We decided to take it asap and enjoy it while we can.

Greenfinch - can you explain please? Why having my cake and eating it too?

If I defer my pension with a view to taking it in a lump sum at a later date I assume the government will benefit from investing it. They would have paid these monies to me monthly if I had chosen to take it straight away - so why would that money be wiped out at my death, though I believe that my husband will be eligible to recoup 50% of it.

It seems very one sided to me! I think I'll be taking my pension as it comes... if indeed it ever does - not till I'm 66 years old and counting - but that's another bone of contention...!

But Oriel it's a choice you make - you don't have to do it. If you lived long enough, you'd do well out of referring, if you don't you don't - you can't have it both ways.

I meant that you can't lose if the money still goes to your family or if you get an enhanced pension later on.I think Rigby explains it better than I do.You cannot have it both ways.

I was still working when I qualifified at 60 for the state pension I'd paid into from age 17 with a two year break when my first baby was born. A friend who had worked in Pensions told me I'd have to live to age 84 if I deferred for a few years because I was still earning. I decided to take the pension. Within a couple of years I had to retire because my health went. I'm well currently and hood to make 80 but it seems that is unlikely. So glad I took the cash
I am so angry that women born on the 50's have been robbed imo. The worked and saved, expecting to retire at 60 and will now have to work to 66

Iam64. I feel exactly the same as you about the retirement age. I too thought I'd be retiring at 60 and whilst I don't mind being on a parity with men and retire at 65 I can't get my pension until age 66! I too have worked all my adult life since the age of 16.

There was a bit of an outcry when it was announced yesterday that people will be waiting an extra year for their pensions. But SIX years extra!! And there seems to be no dissent about it either. I just don't get it.

Rigby46 I know it's a choice. I still don't understand why it should be seen as 'not having it both ways'.

By deferring I am giving the government my pension to invest and for them to gain interest from it - they give some of that interest to me. That's the deal. Why then should the money be given back to the government if I die. Where else would that be seen as being fair? To date I have paid full national insurance for 47 years. Surely it's a case of it's wrong for the government having it both ways?

The state pension is to keep you in your old age. It isn't for your children, it is for you. By deferring it you get a higher rate for (on average) a shorter time. If by deferring it you wish to gamble that your old age will last long enough to make the delay worth while, that is your own choice.