UK government asks why people defer State Pension

The UK government has opened a six-week call for evidence asking why people in Great Britain defer their State Pension, the Department for Work and Pensions (DWP) has said.

The department wants to understand how well people understand their options, what influences when they claim, what happened as a result of their decisions and any barriers or difficulties they met.

People do not have to claim their State Pension when they reach State Pension age. If they do not, they receive no payments and the pension is automatically deferred until they make a claim.

A later claimant may be able to choose a date of claim after reaching State Pension age, which may result in a higher weekly payment known as extra State Pension. They may instead pick an earlier date, usually up to 12 months before they submitted the claim but not before State Pension age. That is called backdating and gives a one-off arrears payment.

A claim date can also produce a mix of an arrears payment and extra State Pension, though a person cannot receive both for the same period.

For people who reach State Pension age on or after 6 April 2016 and receive the new State Pension, the payment rises by 1% for every nine weeks of deferral. The DWP said that is equivalent to just under 5.8% for 52 weeks. The interest-bearing lump-sum option is not available under these arrangements.

For people who reached State Pension age between 6 April 2005 and 5 April 2016, the State Pension rose by just under 10.4% for each full year of deferral. People who deferred for at least 12 months could choose, instead of a higher weekly payment, a one-off lump sum based on the State Pension they had not received, with interest added.

The call applies to Great Britain; State Pension policy and administration are devolved in Northern Ireland. The DWP is working closely with the Department for Communities in Northern Ireland and welcomes evidence from people and organisations there where it is relevant.

Responses must reach the DWP by 1 December 2026, using one online form for individuals and another for organisations. Late responses will not be considered, and respondents do not need to answer every question.

The DWP asked people to leave out unnecessary personal information such as names, National Insurance numbers or contact details, and to anonymise any case studies. It said it may use artificial intelligence to help process responses, and that any use would be subject to human oversight and would not replace human judgement.

The department may publish findings or evidence drawn from the responses as part of wider publications.