Changes to the United Kingdom State Pensions provisions came into force on 6 April 2005. These changes provide more choice for people reaching Stare Pension age. The new choices mean people:

 

Changes from 6 April 2005 mean people are able to put off claiming their State Pension for as long as they like to keep earning extra State Pension. The amount of extra State Pension which can be earned increased to around 10.4% for each year, or 1% extra for every 5 weeks. People are able to put off claiming their State Pension for just 5 weeks to earn some extra State Pension.

 

From 6 April 2005, customers have a new option - to receive on-off, taxable lump sum payment igf they have put off claiming their State Pension for 12 consecutive months or more after 6 April 2005. The gross lump sum payment will be the amount of State Pension they would have received, plus interest equivalent to an annual rate of interest 2% above the Bank of England’s base rate.

 

Between 7 July 2005 and 5 April 2006, the maximum time limits for backdating State Pensions will be extended gradually from 3 months to 12 months.

 

The Pension Service has produced a guide, “Your State Pension choice - Pension now or extra pension later: a guide to State Pension Deferral (SPD1), which contains more detailed information.

 

Alternatively, customers who want more information can contact the International pension Centre by calling +44 191 21 82828. A textphone service is available for those with speech or hearing difficulties on +44 191 21 87280. All services are available free of charge and if customers are concerned about the cost of the call, the operator will take a contact number and call straight back. Opening hours are 8am to 8pm UK time (9am to 9pm CE time) Monday to Friday, except Bank Holidays.