Martin Lewis says get £667 a year state pension boost with one change | Personal Finance | Finance

Martin Lewis is urging people across the UK to add £667 a year to their pension pot with one simple change.

The money saving expert in his latest MSE newsletter urged his followers to boost their state pension.

He said there is a way to get a 5.8 percent increase in your pension per year which could see you handed £667 for each year you ‘defer’ your state pension.

This is because you don’t actually have to take your state pension when you hit state pension age and you can actually choose to postpone or ‘defer’ collecting it.

Currently men and women are entitled to claim state pension when they hit 66, which will soon rise to 67 and then 68 by 2046.

If you don’t claim your state pension when you become eligible, it will automatically be deferred.

But by choosing not to claim your pension despite being entitled to it, you’re forgoing income from the state. As reward, you’ll get a bigger payout when you do claim it.

For every 9 weeks you defer, you get an extra one percent or £2.20 a week. A full year’s deferral on current figures would land you £667 per year more in your pension pot.

Martin Lewis said: “Defer your state pension, and the maths works out that if you live longer than typical life expectancy, you’ll gain; if you live less, you’ll lose. Live a typical lifespan and it’ll be pretty neutral.

“So if you’re in poor health, it’s not really worth considering. If you’re in great health with a history of family longevity, deferring could be a winner.”

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