Over 500,000 people could save money by deferring pensions
For around 520,000 of these people, doing so pushed them over a tax threshold, meaning the entirety of their state pension was taxed. Royal London revealed that by deferring their pensions for just one year, these individuals could save £3,000 to £4,000 over their lifetimes.
Steve Webb, director of policy at Royal London, said: “Those who have worked hard to build up a state pension through their working life do not want to see a big chunk of it disappear in unnecessary taxation. The government should be doing more to alert this group to the option of deferring, as current publicity is clearly not working.”