31 October 2011
A letter from pensions minister Steve Webb was published in The
Times on Saturday. Mr Webb was responding to an earlier
article, which stated that people who deferred their
state pension and then took a lump sum were accepting a
'bribe' of lesser value than their missed pension instalments.
Mr Webb explained that the lump sum option was brought in as a
direct result of the government at the time responding to public
preference. Although taking the pension increments instead
provides a better deal for many people, some prefer to take a lump
sum, and this may also be preferred because it may be ignored when
calculating pension credit.
While Mr Webb said that he was always happy to consider whether
the Pension Service's letters and leaflets could be any clearer, he
recommended that people should call the Pensions Advisory Service
for free, impartial information on state pension deferral and other