State pension deferment "lump sum" to be less than DWP proposed

The revelation comes as the DWP today said the interest rate used to calculate the lump sum gained from deferring state benefits will be at least 2% above the Bank of England's base rate. Given the UK base rate currently stands at 4%, people would receive at least 6% extra for every year they delay claiming based on the DWP announcement. This could see people receiving a lump sum worth up to £30,000 if they defer taking of State pension benefits for at least five years, says the DWP. However, the Pensions Bill out earlier this month proposed people would gain around 7.5% extra for ...