Revealed: Surprising destination named as best place in the world to retire
An unexpected destination has taken the crown as the world's best place to retire.
According to a new report on retirement by International Living, a Central American country is officially the globe's best place to spend your golden years in.
The International Living Annual Global Retirement Index looks for countries where retirees can 'live a healthier and happier life, spend a lot less money and get a whole lot more'.
And this year's winner? Panama.
The Central American country is known for its beaches while the capital city, Panama City, is a hub for casinos and nightclubs.
Jess Ramesch, a U.S expat who lives in Panama, says her friends' 'jaws drop' when they see what the Central American country is really like.
She tells International Living: 'As we leave the airport, that incredible city skyline comes into view, mirage-like over the shimmering waters of the warm, tropical Pacific.
'[My friends] boarded a plane to a little Central American republic, but suddenly they're wondering: "Did we somehow land in Manhattan?" When their jaws drop, I have to laugh.'
Jess Ramesch, a U.S expat who lives in Panama, says her friends' 'jaws drop' when they see what the Central American country is really like
The expat claims that Panama is a 'safe, stable and wealthy country' where a person can live a 'comfortable lifestyle' on $2,400/£1,780 a month.
And expats who are willing to spend $2,900/£2,152 a month can 'live a life that feels positively luxurious'.
Jess adds that Panama 'doesn't charge tax on foreign-earned income' and property tax is just 0.5 per cent for primary residences.
Retirees can qualify for a pensioner visa in 'as little as six months' if they have a pension of at least $1,000/£742, claims Jess.
Pensioners can also pick up some enticing discounts in Panama, including 25 per cent off their power bill, 50 per cent off cinema tickets and 25 per cent off restaurant meals.
When it comes to lifestyle, Jess reveals that Panama's warm temperatures mean that residents can play golf, tennis and pickleball 'all year long'.
The expat explains that she lives in Coronado, a coastal city and resort, just 54 miles/87km southwest of Panama City.
She says: 'I chose Coronado for the gorgeous breezy weather and the ocean views. I bought my apartment (1,130 sq ft) - my happy place - in 2022 for $155,000/£115,029.
Expats who are willing to spend $2,900/£2,152 a month can 'live a life that feels positively luxurious'
'My building is in a coveted location on a golf course and beautifully maintained. We have a large social area and pool on the ground level, as well as three rooftop levels with more common areas, another pool, a gym, a game room, and a sauna.'
Jess adds that Coronado is 'welcoming' to expats with 'overwhelmingly kind' locals who are happy to help non-English speakers.
To claim its place at the top of the podium, Panama beat out tough competition from other expat hotspots including Spain, Portugal, Italy and Thailand.
Jess concludes: 'Fitting in and staying busy is almost ridiculously easy. That's the nature of a well-established expat destination - where you can live an active, social, comfortable life without reinventing the wheel.
'Simply put, that's Panama. And no other country offers so much.'
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BBC News
19 minutes ago
- BBC News
Hampshire firefighting twins retire after 68 years of service
Identical twin brothers are retiring from the fire service with "incredible memories" after a combined 68 years of on-call and Paul Minall were presented with certificates by chief fire officer Neil Odin at Whitchurch Fire Station, in Hampshire, during drill night on who is a crew manager at the station, joined in May 1990, with his brother coming on board two years later, after initially failing to meet the height said he had "thoroughly enjoyed" the work and had witnessed "a great deal of change for the better over the years". Hampshire & Isle of Wight Fire and Rescue Service (HIWFRS) said both brothers had also enjoyed long careers at nearby Portals Paper Mill alongside their firefighting on shift at the papermaking company, they would respond to neighbouring Overton Fire Station for even made newspaper headlines about 20 years ago, after being stopped by police for speeding down a hill on his bicycle while on his way to the fire station to respond to an incident, said Paul, a highlight he "recalls fondly" was when a local restaurant gave out meals to firefighters during a long restaurant initially mistook Paul for his identical twin "coming back for seconds" and denied him any said being an on-call firefighter "is a big part of your life", adding: "But I have thoroughly enjoyed it and have witnessed a great deal of change for the better over the years."The crew at Whitchurch have become a second family and got me through some tough times."Being in the fire service has been really interesting and I take away with me some incredible memories." Watch manager Rich Scarth described the twins as "two of the nicest men you could ever meet" and "valuable members" of the said: "On-call firefighters are required to balance their personal and work lives against their on-call responsibilities. "To provide that service, for that many years, shows the dedication and commitment Dave and Paul have for our area and the people that live here."Also departing the station is Dave's wife Tanya, who has cleaned the building since Scarth said the Minalls "will be missed by all, and will always be welcome to pop in for a cup of tea". You can follow BBC Hampshire & Isle of Wight on Facebook, X (Twitter), or Instagram.
Times
11 hours ago
- Times
20 of the best beaches in Italy
Italy has one of the longest coastlines in the whole of Europe, almost 5,000 miles of it, and yet it can be maddeningly hard to find a quiet patch of sand to call your own. The country's most beautiful beaches tend to be overdeveloped and overcrowded, often with big hotels or resorts nearby, with ranks of sun loungers lined up on the sand like sardines. But there are still plenty of secluded coves to find — you usually just need to put in a bit of legwork to reach them, which is what puts mass tourist crowds off. The reward is nearly always worth the effort: quiet sunbathing, great snorkelling and a refreshing absence of the omnipresent Italian blight of buzzing jet skis and pumping music. Many of the country's best beaches are located inside national parks or nature reserves, so the water is usually spectacularly clear. Here are our favourite beaches in Italy. This article contains affiliate links, which may earn us revenue Best for going car-free Some of Italy's most sensual living unfolds on Panarea, one of Sicily's Aeolian Islands and the holiday haunt of politicians, TV and movie folk, and the wealthy but thinking classes. Cars are banned, so golf carts shuttle you around the hibiscus-draped lanes. But most people walk, often barefoot, and that's how you might get to the glorious cove known as Cala Junco. Follow a clifftop path through violet-flowered caper bushes and yellow broom, taking a look at the stony remains of an ancient, pre-Roman fort on the promontory, before pottering down to the pebble beach below. The topaz shallows rival those of the Caribbean and the only sounds are of gulls and lapping waves. Nearly all the villas and hotels are located a mile or two away along the island's east coast. Hotel Tesoriero is a simple spot, whitewashed and plainly furnished, but most rooms have terraces and some have Mediterranean views. Best for family-friendly paddles The pretty bay towns of the northwestern Italian Riviera are unsurpassed for looks: maquis-cloaked foothills descending to four-storey palazzos that stand on sheer rock beside the looking-glass waters of the Ligurian Sea. Portofino is the main attraction and is packed with the yachting set from June until the temperature dips towards autumn. But on the other side of the peninsula, the little-known fishing village of Camogli has the looks without the tourist hordes. Pack a thick towel (it's a fine-pebble beach) and stretch out at the northern end of the bay, where a promontory calms the currents, making for relaxing swimming. For the full Riviera lifestyle, check into Hotel Cenobio dei Dogi, an elegant grande dame located right on the water's edge with a wonderful terrace and clifftop pool. Best for couplesFor romantic holidays à deux, diminutive Lake Orta, little sister to Lake Maggiore, is about as enchanting as it gets — a knockout expanse of shimmering turquoise water edged by thick green forest (Balzac called it a grey pearl in a green jewel box). The main town, Orta San Giulio, is straight out of a film set — a magical medieval muddle of cobbled alleyways, crumbling archways and narrow streets lined with fading frescoes and fluttering washing lines. A five-minute boat ride from the jetty takes you to the mystical San Giulio Island, an outcrop that's made for romantic strolls and secluded swims. 'Listen to the water, the wind, your steps' says a sign beside one of the island's stone paths. Locanda di Orta is a pretty townhouse hotel a short stroll from Orta San Giulio's lakefront, with small but characterful rooms — some with exposed stone walls, others with tiny balconies. Best for alone timeA 45-minute walk from Sorrento (follow Via Capo to Capo di Sorrento, or take the Sita bus towards Massa Lubrense), the Bagni della Regina Giovanna is named after a Bulgarian queen who legend says sunbathed here naked in the 1920s. Despite its proximity to Sorrento, the place retains its out of the way feel. Tuff stone cliffs have been hollowed out by the sea, creating rock pools, lagoons and shaded caves for dips. The tiny beach is pebbly, although sun worshippers occupy whatever rock or nook they can to lay their towels. Relais Regina Giovanna sits on a lovely, secluded 20-hectare estate facing the coast and is a 20-minute walk away from Bagni della Regina Giovanna. It also has its own private pebble cove, perfect for paddling. Best for all-day dolce vitaReserve your table (and sunlounger) at Lido del Faro when you book your flight to make sure you don't miss out on Capri's best-kept secret. Overlooking the opalescent, calm waters of Punta Carena cove, this restaurant-pool-beach combo promises a perfect day on Europe's most seductive (and, in general, busiest) island. Getting here means hiking the wildflower-flecked clifftop path that follows historic defensive walls along Capri's southwestern crest (if you're not feeling agile, you can take a taxi). Make sure you've packed your sexiest sarong to hold your own among the beauties on the sunloungers that dot the waterside crags and line the saltwater pool. They're yours for the day, so linger and laze until the spectacular 50 shades of red sunset signals Campari o'clock at the beach bar. Capri is crammed with hotels, but one of the most tempting options near Punta Carena is Relais Villa Anna, an upmarket B&B whose pleasant pool is set in a pretty garden filled with lemon trees. Faro is the nicest room and has its own terrace. Best for hanging out with ItaliansFerries and hydrofoils plough through the serene Tyrrhenian Sea, bound for the volcanic island of Ponza, largest of the Pontine Islands, out in the waters between Rome and Naples. The funny thing is, these boats are populated only by Italians, taking a break from their overheated summer drudgery — Brits haven't yet twigged that they can combine a big city with one of these craggy retreats. Over millennia, the sea air has helped whittle Ponza's cliffs into sprawling bays, many of them accessible only by sea. Once you've settled in, rent a small outboard boat from Divaluna, in Ponza's main port, and set out for Pilate's Grotto, a series of white-roofed, blue-bottomed cave pools. If you're feeling adventurous, press on to Palmarola, the westernmost island in the archipelago, and visit the rock formations of La Cattedrale, which resemble the ribs of a gothic cathedral. Hotel Gennarino a Mare is an old-school, family-run hotel at the northern end of San Antonio beach that looks like something from a Wes Anderson film. It offers the kind of personal service you'll be after on an island such as Ponza — and several rooms have balconies overlooking the beach and the colourful seaside houses. Breakfast is included too. Best for simple pleasuresOn the southern coast, towards the northwestern end of the Med's largest island, this nature reserve escaped overdevelopment thanks in part to the region's historic reputation for malaria. The disease has long been eradicated in Italy, and what remains is untouched coastline. It's a wild, dune-dotted stretch, bristling with agave and sea daffodils, and blessed with fine, powdery sand. Roll out your towel at Le Solette beach, to the east of the reserve, for well-heeled company; or further along the coast for Capparrina di Mare, where you'll be paddling alongside sea turtles. A couple of miles from the beach is Momentum Wellness Bio-Resort, a luxury retreat that, despite its rural location, is brimming with urban style. Book in for a yoga session, soak in the spa and have a locally sourced lunch overlooking the olive groves. Best for Tuscany minus the touristsLike other stretches of the wild, pine-fringed coastline known as the Maremma, Cala Violina is a rarity in touristy Tuscany — undeveloped and unspoilt. Framed by two promontories and backed by the trees and scrub of the Bandite di Scarlino nature reserve, the beach is accessible only after a 30-minute walk: its musical name comes from a phenomenon known as 'singing sand', caused by wind whistling through quartz crystals. From June to September, visitor numbers are limited to 700 people, ensuring everyone can find their own sandy spot. Reservations cost just €1 and must be made at Out of season you might well find it's completely deserted. Resourceful walkers will discover several other coves along the coast known only to locals: the nearby town of Grosseto makes a convenient base from which to explore. Most Italian visitors to the Maremma will camp, but staying at a local agriturismo such as Podere Binacco, with its rustic apartments and traditional architecture, is a great way to experience the laid-back lifestyle. Cala Violina is a couple of miles' walk, cycle or horse ride away. Best for southern adventuresThe Calabrian coastline is generally off the radar for most non-Italians, but the area has some good beaches to seek out: some developed, others blissfully undiscovered. Capo Vaticano is the rugged, rocky promontory sticking out towards the Aeolian Islands off the west coast, a bit like a carbuncle sitting on top of the Calabrian boot (nearby Tropea is famous for its red onions). The surrounding area is awash with resorts, but if you're prepared to walk a bit, you'll find the cape also conceals several secluded, rocky coves: Praia I Focu is a beauty, a little splash of sand perfectly framed against the cape's grey granite cliffs. It's a hike to get here, so it tends to be a bit less busy than its neighbour, Ficara, and the swimming is sublime. A good-value place to stay is L'Arcobaleno Resort, which has self-catering apartments set around a grassy garden and palm-fringed pool, and vistas of the Aeolian Islands. Rooms are sparsely furnished, but a few have sea views. Best for rural charmThe Amalfi coast looks like a dream. But in high season, when wide-load tour buses scrape along the shoestring roads, it can be a nightmare. A couple of hours' drive south, you'll find the wilder Cilento area. It might look less fairytale, but its rocky coves, wildflower meadows and knots of eucalyptus trees are infinitely more romantic in their emptiness. In the middle of this lies Scario, a pink and cream harbour with a handsome clocktower. Ask a fisherman to take you past sheer rocks to coves inaccessible from land. A taxi boat patrols this route too, but the fishermen will drop you one empty stop further (book a return). The Savoy Hotel & Spa in Paestum sits opposite a pine forest, near the beach, on the edge of Cilento's national park, ideal for exploring the wider area and places like Scario. You'll also find a huge pool, spa and gorgeous gardens. • Read our full guide to Italy• Best places to visit in Italy Best for Amalfi coast viewsThe Sorrentine peninsula is gorgeous, for sure, but no one could call it uncluttered — until, that is, you get to Tordigliano beach, a perfect pebbled sweep west of Positano. Of course, it's unspoilt for a reason — and that's because it's jolly hard to get there. You'll need a boat (beg a lift at the marina in Sorrento), or scramble down the mile-long hillside trail that starts by the side of the serpentine SS163. Either way, it's always worth the trek and, outside of August, you'll likely be alone. Positano is very pricey, so you'll find better value west along the coast in Sant'Agnello. The hillside Gargiulio Resort is a seriously glitzy proposition, with sleek rooms decked out with zigzag tiles, skylights, porthole windows and private terraces with panoramic coastal views. Best for super snorkellingHoliday frolics were probably the last thing on Napoleon's mind when he was exiled to Elba in 1814, but this island, a 30-minute ferry ride from the Tuscan mainland, has some of the loveliest beaches in Italy. Try Capo Bianco for white pebbles hemmed in by dramatic cliffs or Cala Seregola for the hot-red strands of the eastern side. But for all-round popularity, Sansone has the edge, with pristine, shingle-strewn shores leading to shallow, transparent waters. It's the obvious choice for families as paddling is safe and fun, and the snorkelling is superb. Base yourself a ten-minute walk from Sansone at the Paradiso, a simple, pleasant hotel with a sea-view pool and a prime position above a quiet beach. Best for sensational sunsetsThe Due Sorelle beach (named after the two rocky sisters that rise out of the water) has the best sunsets on the east coast — or so the locals say. It looks pretty darn good in daylight too, on the edge of Parco del Conero, with spiky cliffs plunging down to the silvery Adriatic below. Pick up a boat in Numana for a round trip to this fine, white pebble beach — and expect to find various operators in high season, including those with sunset tours. Hotel Monteconero is a lovely place to stay, housed in a hilltop abbey dating from 1100 — but with modern luxuries including a spa, a pool, a restaurant and a panoramic bar terrace. Best for wonderful wildlifeSoutheastern Sicily has such baroque gems as Noto, a town with natural treasures on its doorstep too. At the northern end of the Vendicari Nature Reserve, this tranquil stretch of sandy beach welcomes a sprinkling of birdwatchers, sun-seekers and nudists. It's a hike, but a lovely one: about half an hour from Eloro, through groves of almond and lemon trees, with the scents of wild thyme and rosemary drifting on the breeze. If it's wildlife you're after — redshanks, curlews, avocets, egrets and spoonbills — the area has some of the finest selections in Sicily. Stay at Case Marianeddi, a beautiful agriturismo in converted farm buildings, with much of their original character intact, from rough stone to old beams. Marianelli beach is about a ten-minute walk away, down a short trail. Best for after-hours magicWhy are we telling you about this one? Frankly, we're not sure. It's a little slice of heaven that we'd prefer to keep to ourselves. Located halfway between glam Portofino and the village of Camogli, San Fruttuoso's tiny cove — accessible only on foot or by ferry from Genoa — gets even better when the last boat has gone home. Then you can dine on the beach, overnight at Da Giovanni and revel in the atmospheric delights of the medieval abbey and its misty mountain backdrop — simply magical. Agririfugio Molini is a steep hike up from the beach, but you couldn't ask for better views. The renovated house teeters on the verdant hillside and most of the rustic rooms look straight down to the sea. A lovely, locally sourced breakfast is included. Best for iced espressosPuglia is all about the beach — when it's not about the trulli houses or the olive oil — and this is the prettiest on Italy's heel, on the edge of a nature reserve just north of Otranto. It can get crowded in August, but the rest of the year you'll be hanging with hardcore nonnas who make the journey for a shot of the best beach shack iced espresso €1 can buy. Park up behind the aromatic pinewoods, then follow the sound of gossip down to the bright blue bay, with its mile or so of white sand and blue flag status — awarded only to beaches that meet stringent environmental criteria. In Puglia, a historic masseria or farmstead is the place to stay — and Mongio dell'Elefante is a wonderful example, with sumptuous suites, a swanky spa and stylishly renovated traditional architecture. Best of all, Baia dei Turchi is within walking distance. Best for a bumper beach crawlFor the ultimate secret-beach crawl, Sardinia reigns supreme. There are wonderful spots all over this holiday isle, with its 1,150 miles of coastline and seas of Caribbean blue. The Sinis peninsula, in the west, is mostly deserted: you could be the only one on the sandy shores of Sa Mesa Longa, sheltered by a sandstone strip; or the white sands, with rose-tinged quartz, of Maimoni. Elsewhere on the island pick up a boat near the southwestern town of Teulada and set sail for Cala Zafferano, a ludicrously beautiful white-sand cove. And in the east try the Oasis of Bidderosa, a world away from the glitzy Costa Smeralda. Vehicle numbers are limited from May to October, so reach its series of blissful coves by treks through the forest and scrub that lead down to the shore. Several towns are dotted along the peninsula coast road south of Cagliari, including Teulada — and just outside it sits the cosy Hotel Belvedere, a traditional, unpretentious B&B that serves honest, filling food. You'll need a car to reach it. Best for solitudeWith beaches you won't have heard of in a region you won't know, the Punta Aderci nature reserve on Abruzzo's wild, rocky coast is one of Italy's least-visited spots — goodness knows why. Punta Penna attracts the locals, but few plough on to the smaller cove of Punta Aderci around the headland, where the shingle is studded with driftwood, the waters are clear and the last trabocco — a wooden house on stilts once used for fishing — on this stretch of coast stands proud. To be within walking distance of the beach — less than a mile away, in fact — book in for a night at Villa Marianna, a welcoming B&B known for its hearty breakfasts and pleasant gardens. There are bicycles available to rent and beautiful trails to follow too. Best for messing about in boatsThe tiny outcrop of Marettimo is part of the Egadi Islands and lies off Sicily's west coast just over an hour by hydrofoil from Trapani. There are just 300 residents, and while that number can double in summer you're not exactly fighting for towel space on the narrow stretch of sand at Cala Bianca on the northwestern tip. However, you might need a boat to get there, so ask around by the port. Want to head off on foot? Then try the dramatic Cala Nera, reached on a difficult and long hike through the interior — this rocky outpost is dotted with caves that are just right for a shady swim, but do take a water taxi back. The main town on the east coast is where nearly all the island's accommodation is located, including apartments such as Il Rifugio, a modern ground-floor space in the centre not far from the port. Best for Instagram snapsThis exclusive beach in the Gargano National Park may not be deserted but it's as glamorous as they come. Baia delle Zagare hotel provides private access for guests, in a lift cut into the rock, or you can arrive by boat from Mattinata, but be aware that this half-mile stretch of sand, sheltered by steep limestone cliffs, allows just 30 visitors a day (you'll need a pass from the town hall). Looking out towards the Faraglioni, two rocks that rise dramatically from the Adriatic Sea, this is an Instagrammer's dream on every level. Baia delle Zagare is the logical place to stay: it's right above the beach and you can dine at dusk with uninterrupted vistas over the Med once everyone else heads for home. • Lake Como v Lake Garda: which one should you visit?• Most beautiful places in Italy Additional reporting by Oliver Berry
Telegraph
13 hours ago
- Telegraph
Is it worth deferring my state pension?
A little-known secret about your state pension is that delaying when you start taking your payments could mean getting higher amount when you do decide to claim. If you live a long time, it could net you thousands of pounds. But it doesn't work for everyone, and there are some catches to navigate – from gambling on your own life expectancy to potential tax implications. Here, Telegraph Money sets out who could benefit from state pension deferrals, how it affects you and the best ways to avoid some significant drawbacks. What is deferring your state pension? Am I eligible and how does it work? How much would I get? Is deferring still worth it? State pension deferral FAQs What is deferring your state pension? Deferring your state pension is when you decide to wait beyond your state pension age to claim it. People currently reach the state pension age on their 66th birthday. For every nine weeks you wait, you'll get an extra 1pc on top of your original payment when you do come to claim it. Benefits of deferring your state pension There are some major benefits to deferring: Higher payments. The 1pc for every nine weeks stacks up to 5.8pc extra a year, every year, and that's on top of your existing payments. That means you will have more money coming in, and it's guaranteed for life. Your payments will increase each year. Under the triple lock, this extra amount you're receiving will also increase each year by at least 2.5pc. Due to higher inflation, it actually increased by 8.5pc last year and will rise 4.1pc from April 2025. Potential tax savings. You might pay less in tax if your income drops before you claim your state pension. For instance, if you're earning over £50,270 a year, you'd pay 40pc tax on your state pension. If you waited until your income was lower, such as by stopping work, you'd pay less tax. Drawbacks of deferring your state pension There are some major potential pitfalls to deferring and you'll need to consider these: Getting less money overall. The state pension changes each year, but it's generally accepted that it takes between 19 and 20 years from state pension age to break even if you defer, regardless of how many years you defer for. If you die before then, you could end up receiving less money than if you'd started claiming payments as soon as you reached state pension age. A lower income before you claim. You will have less money during the time you defer and if you claim before the end of a nine week period, you won't qualify for that specific 1pc increase. Figures from the Office for National Statistics (ONS) imply that deferring is something of a gamble. Its online calculator suggests that the average 65-year-old men could can expect to live further 20 years, to 85, and 65-year-old women a further 22 years, to 87. This is projected to rise to 21.9 years for men in this age bracket, and to 24.1 years for women by 2045. What is more predictable is how this could negatively affect your tax bill, which we also discuss below. However, it's important to remember that you're not committed to deferring your state pension. If you change your mind, you can just claim it. Am I eligible and how does it work? Anyone can defer their state pension: You don't need to do anything, as your state pension won't start until you actually claim it. This can be done online, over the phone or by post, but you should get a letter explaining all this shortly before you reach state pension age. If you haven't reached it yet, our state pension age calculator can help you find out when this will be. There's no maximum amount of time you can defer for, and you'll keep building up money for every nine weeks you wait. However, it is crucial to also bear in mind that if you or your partner are claiming certain benefits, such as pension credit or Universal Credit, you will not build up extra money by deferring during that time. If you're planning on continuing to claim those, it's unlikely that deferral will be the right option for you. How much would I get? Currently, you would get an extra £2.30 a week, or £120 a year, for every nine weeks you defer. This is because the full state pension for people who reach retirement age after April 2016 is £230.25 per week, or around £11,973 per year for 2025-26. If you deferred for a full year, the 5.8pc increase would add an extra £694 to what you'd receive annually. Alternatively, you can look at it as giving you around £13.35 a week extra. How long can I defer my pension for? You can defer your state pension payments for as long as you like. As state pension payments won't begin until you make a claim, the length of time you defer for is entirely in your hands. The key is working out when the best time to claim is – this will depend on your other income, whether you're keen to minimise tax, and whether you're concerned about potentially missing out on any of the benefit you're entitled to. Navigating higher tax brackets Income from the state pension forms part of your overall taxable earnings, so there are some considerations and calculations to make. It might be worth deferring to save yourself tax. For example, if you reach state pension age, carry on working and your income is over £50,270, you will lose 40pc of your state pension in tax if you claim it immediately. However, if you defer until you stop working, you'll pay less tax if your total income then drops into the lower tax bracket of 20pc. If your only income was your state pension, you could even pay no tax at all. Natalie Kempster, of financial planner Argentis Wealth Management, said: 'Someone earning £150,000 per year would effectively pay 45pc tax on their state pension, meaning that they would net just £6,326. Defer your pension until the following year, when you are retired and a basic-rate taxpayer, then the numbers start to look a whole lot more favourable.' However, Dean Butler, Standard Life's retail managing director, said you should also consider whether taking a higher income later (through deferring) might actually push you into the next tax band, as opposed to taking a lower income from an earlier date. This brings its own issues. It might not be worth deferring if it means you're then taxed at 40pc or 45pc on what you have gained, especially if it's that gain alone that pushes you into the next tax bracket. Is deferring still worth it? Some people think this depends on which state pension they receive. Under the 'old' pre-2016 state pension system, many people deferred because there was a significant uplift to be had, and there was the option to take the deferred payments as a lump sum. Claire Trott, of wealth manager St James's Place, said that compared to the old state pension, the extra amount you get from deferring the new state pension had nearly halved – the uplift for deferring dropped from 10.4pc to 5.8pc. Andrew Tully, of Nucleus Financial, said an alternative to deferring could be to take your payments straight away and use them to invest in an Isa. He explained: 'That means you have access to that at any point, and it may grow over time.' Overall, whether it's worth deferring your state pension is dependent on a number of factors, including your income, where you retire, your cost of living, tax implications and how long you'll actually live. State pension deferral FAQs Can I defer if I've already started getting my state pension? Yes, but only once. You can keep the deferral going for as long you like, but once you restart your pension, you cannot pause it again. You'll need to start the deferral yourself by contacting the Pension Service. Can I defer if I'm still working? Yes. Whether you're working or not has no bearing on deferring, or claiming, your state pension. As long as you've reached your state pension age, the decision is up to you. However, as mentioned before, there may be a tax advantage to deferring if you still have a regular income from work. What if I'm on the old state pension? If you're eligible for the old state pension, you are probably already receiving it. As above, you can still decide to defer it if you haven't already done so in the past. You will get 1pc for every five weeks you defer, which works out as 10.4pc for every 52 weeks. You can take the amount you build up as a lump sum or opt for extra regular payments. If you're on the new state pension, you don't have the lump sum option. What happens if I retire abroad? You can still defer. Each year, the state pension increases by the highest of inflation, average wage increases or 2.5pc. This is known as the triple lock and it applies to the extra amount you get by deferring too. For this to apply however, you'll need to live in the UK, the European Economic Area (including Switzerland) or a country with which the UK has a social security agreement (except Canada or New Zealand). If you live in a country that doesn't fit the criteria, you'll still receive the extra payments you have built up. However, they will be frozen at the level they were at when you either reached state pension age or moved abroad, whichever is later. What happens when I die? This depends on which state pension you receive. If you reached state pension age before April 6 2016, you're on the old state pension. This means your husband, wife or civil partner can inherit the extra payments you've built up, subject to certain conditions. If you get the new state pension, i.e. you reached state pension age on or after this date, they can't. Our guide to what happens to your pension when you die can explain more.
