DWP State Pension: Millions of state pensioners across the UK could be missing out on up to £694 extra per year in retirement income by not using a little-known rule offered by the Department for Work and Pensions (DWP). If you were born after April 6, 1951 (men) or April 6, 1953 (women), and are eligible for the new State Pension, you may qualify for this extra money—simply by delaying your claim.
What Is the DWP Pension Deferral Scheme?
Under DWP guidelines, you are not automatically enrolled into the State Pension scheme once you hit the official State Pension age (currently 66). Instead, you will receive a letter two months before you reach pension age asking whether you want to claim or defer your pension.
If you choose to defer, you don’t need to take any further action. Your payments will be paused, and in return, your weekly State Pension will grow—offering a solid return for those able to wait.
How Much Extra Can You Get?
If you defer your pension for at least 9 weeks, your weekly amount increases. The government adds 1% for every 9 weeks of deferral, which totals about 5.8% for a full year.
Currently, the full new State Pension is worth £230.25 per week. Deferring for 52 weeks would earn you an additional £13.35 per week, which adds up to £694.20 per year.
And if the annual State Pension rises under the Triple Lock or inflation adjustment, this deferred bonus could grow even more over time.
Who Is Eligible?
You’re eligible for the new State Pension (and therefore this deferral option) if you:
- Are a man born on or after April 6, 1951, or a woman born on or after April 6, 1953
- Have reached or are approaching State Pension age (66)
- Have not yet claimed your pension
If you were born before these dates, you’ll receive the basic State Pension, which has different deferral rules.
With the rising cost of living and pressure on retirement income, deferring the State Pension offers a safe and government-backed way to increase your annual income without relying on private investments. While it may not be ideal for everyone—especially those who need immediate financial support—it’s a powerful option for those able to wait.
The DWP encourages individuals to carefully consider their personal circumstances before deferring, as the increased payments could offer more security later in retirement.