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Is delayed state pension lump sum false economy?
13/12/2011
It has recently been published in the National press that over 40,000 pensioners lose out on spending power each year by deferring state pension payments in favour of gaining a lump sum at a later date.
The Government offers an alternative to drawing your regular state pension. If you opt to defer your payments then you will be in a position to claim a lump sum payment, equivalent in value at a specified date in the future.
Pensions that are deferred are paid out at an interest rate of 2% above the Bank of England base rate. However on the open market the lump sum payment would be substantially higher.
Homeowners who are finding it difficult to decide how to take their state pension and would also like to know how much money the value of their property could release to increase their income can find out by contacting therightequityrelease.co.uk for equity release advice.
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