State pension deferral offers opportunity for advice

The provider argues pensioners can not only receive higher retirement benefits by deferring the state pension for a number of years but also pay less tax through careful financial planning. It claims the enhanced pensions benefits can be taken in two different ways, an enhanced weekly pension or a lump sum. The tax planning opportunities for advisers occur when clients opt to take the lump sum payment. The enhanced weekly pension will be subject to income tax at the client’s normal marginal tax rate. Whereas while the lump sum would be subject to income tax again, this will only be subje...