The Essential Guide Magazine Culcheth May - June 2014 | Page 60

pension allows you to do one of two
things:
Increase your entitlement
Your state pension increases by one
per cent for every five weeks you delay
claiming. This equates to 10.4 per cent
for every full year you don’t claim.
Extra state pension is taxable and could
affect means-tested benefits. However,
the flat rate single-tier system planned for
2016 onwards would replace the current
means-tested top-ups.
Receive a lump sum
Deferring your state pension for at least
12 months in a row allows you to opt for
lump sum payment.

that applies to your other taxable income.
Your state pension is automatically
deferred until you send your claim form
to your pension centre. You can stop
claiming your pension by contacting
your pension centre.

LIVE LOCAL? BUY LOCAL!

The above article is for general guidance
only and no responsibility will be
accepted for any person acting on
information contained therein. Tax
is a complex area and specific advice
should be taken regarding your own
circumstances before deciding on a
course of action.
Please see our web site for further tax
information. www.hunterhealey.co.uk/
gateway.html

Lump sums are taxed at the highest rate

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Eight issues in Culcheth • Lymm • Great Sankey & Penketh • Chapelford
Stockton Heath & Appleton • Thelwall, Latchford & Grappenhall • Birchwood • Lowton & Golborne.

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