Dodgy69 wrote: Fri Jun 19, 2026 8:59 pm
Talking to a chap today who is just 66, his wife is younger. He's got a few bob, let's property's etc. Started drawing his state pension recently. His financial advisor has found a way to get him nearly 17k a year. Chap says it's some sort of bonus, wasn't too sure himself he says.
Doesn't include any personal pensions or old works pensions just state 17k. How. ???
Well, ask him, then tell us.
I guess the question is, are they now saving him £17k a year he should have already been doing anyway and everyone else is.
Maybe the financial advisor is actually a pension stealer (as they often are).
And he can create the temporary illusion of a 17k state pension, while in fact he's transferring absolutely everything to himself. That's the old pension stealers' way.
The only way of bumping up a state pension that I know of is to defer it. But you'd have to defer it for a looong time to get to £17k. It goes up by 5.8% for each year deferred. Dunno if that's cumulative. So roughly £700 pa and to add the £5k you'd have to defer by about 7 years.
It used to be a more generous deal than it is now.
ZRX61 wrote: Mon Jul 06, 2026 4:24 pm
About 3 weeks since the Dow cracked 52,000 & it almost hit 53,000 this morning.
Not really reflecting in the pension at the moment. A couple of weeks ago it went up by £10k, then dropped by £3k again and has sat in/around that figure since. I wasn't planning on checking but thought i'd look based upon your post.
weeksy wrote: Mon Jul 06, 2026 4:27 pm
Not really reflecting in the pension at the moment. A couple of weeks ago it went up by £10k, then dropped by £3k again and has sat in/around that figure since. I wasn't planning on checking but thought i'd look based upon your post.
Vanguard takes a while to update figures, I noticed today it hasn't been updated since July 2nd. It was up by 3.32% for May, down by 0.13% for June & down by 0.44% for the first two days of July. I'm still + 16.3% overall Since Oct '23.
Count Steer wrote: Sat Jun 20, 2026 6:21 am
The only way of bumping up a state pension that I know of is to defer it. But you'd have to defer it for a looong time to get to £17k. It goes up by 5.8% for each year deferred. Dunno if that's cumulative. So roughly £700 pa and to add the £5k you'd have to defer by about 7 years.
It used to be a more generous deal than it is now.
For anyone born before 6th April 1951, the annual increase that deferring the SP gives is 10.4%, which is definitely worth having. After that date it's 5.8%.
weeksy wrote: Mon Jul 06, 2026 4:27 pm
Not really reflecting in the pension at the moment. A couple of weeks ago it went up by £10k, then dropped by £3k again and has sat in/around that figure since. I wasn't planning on checking but thought i'd look based upon your post.
Vanguard takes a while to update figures, I noticed today it hasn't been updated since July 2nd. It was up by 3.32% for May, down by 0.13% for June & down by 0.44% for the first two days of July. I'm still + 16.3% overall Since Oct '23.
Is 16.3 is the number you meant to type?
My Vanguard 100% Equities ISA says +63.71% since 1/10/23.
Count Steer wrote: Sat Jun 20, 2026 6:21 am
The only way of bumping up a state pension that I know of is to defer it. But you'd have to defer it for a looong time to get to £17k. It goes up by 5.8% for each year deferred. Dunno if that's cumulative. So roughly £700 pa and to add the £5k you'd have to defer by about 7 years.
It used to be a more generous deal than it is now.
For anyone born before 6th April 1951, the annual increase that deferring the SP gives is 10.4%, which is definitely worth having. After that date it's 5.8%.
Count Steer wrote: Sat Jun 20, 2026 6:21 am
The only way of bumping up a state pension that I know of is to defer it. But you'd have to defer it for a looong time to get to £17k. It goes up by 5.8% for each year deferred. Dunno if that's cumulative. So roughly £700 pa and to add the £5k you'd have to defer by about 7 years.
It used to be a more generous deal than it is now.
For anyone born before 6th April 1951, the annual increase that deferring the SP gives is 10.4%, which is definitely worth having. After that date it's 5.8%.
How many years to pull back missed year. ?
Don't really understand the question. Whether or not you get the higher rate from deferring is an accident of birth date.
Dodgy69 wrote: Mon Jul 06, 2026 8:31 pm
If you defer drawing it by 1 year, say 12.5k, with the extra added to the following year's, how many years to pull back 12.5k.
My wet finger in the air calc was it makes ~£725pa.
So. If you stay above ground for 25 years it makes ~£18k, 30 years ~ £22k
My missus deferred by a year but she was still earning so she saved on tax on earnings during that year too.
If you qualify for the higher deferment rate and you carry on working after the age the SP becomes payable, you also benefit from not being assessed for National Insurance, which gives a nice boost to your take home pay. I went down to a 4 day week at that point and found no difference in my take home pay. For the last couple of years I went down to a 3 day week and the pay packet was still not far off what it was prior to reaching SP age.
Dodgy69 wrote: Fri Jun 19, 2026 8:59 pm
Talking to a chap today who is just 66, his wife is younger. He's got a few bob, let's property's etc. Started drawing his state pension recently. His financial advisor has found a way to get him nearly 17k a year. Chap says it's some sort of bonus, wasn't too sure himself he says.
Doesn't include any personal pensions or old works pensions just state 17k. How. ???
Well, ask him, then tell us.
I guess the question is, are they now saving him £17k a year he should have already been doing anyway and everyone else is.
Or, is there something we could have missed
@Dodgy69 Do you mean £17k tax-free allowance?
if so I'm guessing that's simply as he has significant savings, so can mave an extra £5k interest tax free on top of the regular £1k with the "starting savings" allowance= I've been using it for the last few years
