State pensioners could save £694 a year in tax but need to have deep pockets

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Brits are being encouraged to explore a little-known retirement strategy that involves postponing their state pension. This approach not only ensures no tax is deducted during the postponement period but could also provide a lifelong increase worth £694 annually for those who qualify - if you have deep pockets.

According to MoneySavingExpert, pensioners who postpone claiming their state pension can boost their eventual pension rate by up to 5.8% for each complete year deferred. This translates - based on current full new state pension levels - to approximately £13.35 additional per week or £694.20 across 52 weeks.

Since you are not receiving the pension whilst it is postponed, there is no tax liability on that income during the waiting period. For retirees who remain in em