Working after retirement age

If you can afford to not claim your State Pension, and you enjoy your job it would be a really good investment.

I suppose it comes down to how much you enjoy working? Everyone is different in this regard. One size doesn’t fit all. It sounds as though you could retire if you’d like to? Choices.
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Whilst I understand that deferring the ‘old age’ pension would increase the amount - it’s also important to remember that should you die before claiming it, it dies with you. I was advised to take and bank it even if I didn’t need it, but to defer taking any vocational pensions as a percentage of those can be passed on.

And remember that deferring your SP assumes you’ll be alive to cash it ‘when you’re ready’. Hmm.
I’ve always been ‘a bird in the hand’ type of person.
If I’ve got 10p in my pocket I want to spend it.
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If you claim your pension and are still working the tax codes change a bit (get messed up). Eventually they come right but really it depends whether you yourself want to continue. I was a nurse and quite physical job so was relieved to stop working. Also have experienced nurses working on and on but not being able to fully understand changes and the digital and online era as you do take longer to adapt as you get older and I did not want to make mistakes. Also have ended up almost full time child care so working on was not an option. I guess it depends on if you are able, if you want to and if you are happy to adapt to any tax changes.

I’m with Urmstongran, it’s better to collect your pension when you can, none of knows how long we’ll live.
Given the high rate of unemployment that is coming, I think it’d be fair to give up work when you get your state pension. You’ll then have two pensions to live on, and a lot of younger people will be out of work.

"Sallywally1 Fri 07-Aug-20 22:26:02 Is it best to give up my job next year and claim state pension, or defer, if I defer I believe I will be able to claim more later on. Am confused!"

If you defer a year and give up £159.55, (assuming that you get the full wack,) a week you will have lost £8,296 in pension you did not draw.

Taking inflation into account you will have to live around 15 years to get that amount back over your lifetime from the higher pension.

You can defer for longer still, an extra 1% is added to your pension for each nine weeks you defer. So each year’s delay enhances your pension by a shade under 5.8%.

www.gov.uk/deferring-state-pension/what-you-get

I hope that helps. For what it's worth, my accountant gave me the same advice as Urmstongran, far better to have the money in your hand. Also, do remember that if you have any other income, like a private pension, or rent from a property, your state pension is deemed as income and can therefore attract income tax.

Two things that you can't escape from, death & taxes.

Agree with Spangler except that the full state pension is now £175.20 per week assuming no contracted out deduction. Which would take even longer to recoup so makes it less attractive to defer.

Would voluntary work not fill a gap if you anticipate not having enough to do Sally?

I too would advise claiming SP sooner rather than defer none of us know what’s round the corner regarding health.

I work full time at 69, love my job, but I take my pension, I don’t notice the tax difference. As previously said, if it is in your hand it is better. A friend of mine also working full time has hers paid into a savings account.

My partner is 69 and still working full time (furloughed at the moment though)

When he was 65 he claimed his state pension, and has it paid into his savings account. Better in his account than the Goverments

I agree with the above. I worked part-time for 8 years after I retired and had my two pensions paid into a savings account and luckily the interest rate was marginally better then.

It is always sound advise to drawdown your state pension as early as possible. As already stated that pension is stopped immediately that anyone passes away. Therefore, to draw on your state pension and invest those funds it is preferable as in that it will remain as an investment for someone even after the person as the recipient of the pension dies.

Deferring the state pension for a higher return in later years means that should the prospective recipient pass away the only benefactor will be the state.

Thanks for all of theses messages
You have answered a question I haven't even asked yet
(Funny)
I retired almost two years ago and have realised its the worse thing I did. I'm health & fit lady who lives alone.
And i'm sure like most of you, my children have grown and have their own family. I've been looking into volunteer work and found one, but I think they want blood for nothing.
So, after reading that some of you are still working , and you are older then me, I am now going to update my CV and send it out to the world for part time roles.

Happy 2021

I did have a look at this but decided it wasn’t worth it. I am still working at 67, only part time, - very part time now due to Covid. I think it was more advantageous before the pension changes.

I was looking at deferring but realised not having to pay NI on my wages after pension age will take the sting out of the extra tax I will be paying, I was actually surprised that my state pension is higher than I thought it would be seeing as I did opt out but I am going to get more than the new basic pension so I am glad I am taking it now