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Carers UK Forum • Deferring State Pension
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Deferring State Pension

Posted: Fri Apr 11, 2014 9:29 am
by Blair
Later this year I an entitled to State Pension. Am I correct in thinking that I can
1 - either cease to claim CA and take State Pension
2 - continue with CA and defer State Pension (though no build up of SP will be accrued)
Is there any course of action which is more beneficial, though my inclination would be to just start taking State Pension. Perhaps I'm making it more complicated than it really is, but wondered if the 'tax saving' would favour keep claiming CA.

Apologies if this sounds a bit garbled/disjointed.

Will phone DWP but any advice would be appreciated.

Regards
Blair

Re: Deferring State Pension

Posted: Fri Apr 11, 2014 10:27 am
by Scally
Deferring State Pension is a very smart move - (which is why the Chancellor is trying to stop people doing it at the recent budget) because you get an extra 1% for every five or six weeks you put it off, thats a 10% index linked rise for every year you hold off. My wife is doing just that, but I'm not sure about CA, I suspect you will lose it when you reach retiral age. Please let us know what you find out.

Re: Deferring State Pension

Posted: Wed Apr 16, 2014 9:43 am
by Blair
Confirmed by DWP, and various other agencies, that either CA or SP. If CA, no build up of SP at all - so (my) best option is to lose CA and start claiming SP. Even the extremely helpful folk I spoke to at DWP said, but not officially of course, that it was an immoral situation.
My SP has been built up, by a lifetime of salaried work related contributions. If I had elected to keep working (even a part time post) past State Pensionable age, I could build up a very nicely increased State Pension, by deferring, and yes, it would attract a healthy additional interest rate.
Continuing to be a full time Carer attracts none of the above. No recognition at all by the powers that be, and even though I know it to be correct, I still find it hard to believe, that we 'just drop off' the radar as far as financial recognition by the powers that be are concerned.
Again, rather sheepishly, I was told that I would be listed as having 'Carer's Entitlement' by the DWP, but had it confirmed, that in my case, (as I claim no benefits), it really only means that I am still listed as a Carer.
My incredulity really defies words, and perhaps optimistically, I hope that one day, in the not too distant future, this egregious wrong will be righted.
Blair

Re: Deferring State Pension

Posted: Thu Apr 24, 2014 8:26 am
by marie66
Thanks for the information - this thorny one is going to come all our ways at some point!
(((hugs)))
M x

Re: Deferring State Pension

Posted: Thu Apr 24, 2014 10:20 am
by ladybird17
I'm in pretty much the same boat as you are, Blair. My SP is due to start at the beginning of July and I too looked at my options - which basically, are no options at all!

The government are having their cake and eating it too with this. Officially, CA is a substitute for wages, or a salary. (And I ask you, who'd be doing a job for such a ridiculously paltry amount of money?!). That's poppycock, because anyone who is eligible can claim CA - regardless of whether they are a working person or not. So it can't be a substitute for wages if a carer wasn't employed in the first place. But by couching it in these terms, it means that you can't claim CA AND SP - because you are now a "pensioner". And even though you can still get the SP and continue to work (in the real world, that is). Admittedly you have to pay tax - but at least if you took this route, you'd be better off. But according to the government you can't be a pensioner and claim CA. So on the day my SP starts, I shall be phoning SS and telling them that the government won't allow me to work as a carer any more, the keys to my Dad's flat are under the mat, and I'll leave it to them to sort out his care.

Re: Deferring State Pension

Posted: Thu Apr 24, 2014 4:42 pm
by Scally
Depressing lack of logic or fairness in the regulations, isn't there? This double jeopardy rule means in effect that Carers past retirement age are paying a Carers Tax of £62 per week simply for being over a certain age. Our pensions are things we have saved for, not some kind of grace or favour largesse from the State. We already have the third lowest state pension as a % of average earnings in Europe. And I thought it was illegal to discriminate on grounds of age? DWP seem to be a law unto themselves.

I'm retirement age in five years, by which stage my son will be 24. By that point I will definitely be phoning social services and housing associations and 'requiring' that he gets his own supported accommodation - at a cost to the State of somewhere over £30k per annum. Its a crazy policy.

pensions

Posted: Thu Apr 24, 2014 8:01 pm
by g.herschel
don't forget if you defer your state retirement pension before April / May 2016 you will be entitled to the OLD STATE retirement pension rates that will be in force up to April /May 2016 after that date the new universal pension should be introduced which will be set at on todays rate at £144 per week thank god I retire in August 2016 and should be entitled to the new universal pension ... the government have not yet said if the new pension will remove the need for state pensioners to claim pension credit as we know at the moment those who claim pension credit can also claim housing benefit and council tax support but if they are now receiving enough to live on will they get the support they need via H.B / C.TAX support ..