The number of retirees opting to delay taking their state pension in order to boost their monthly payments has more than halved over the past seven years after new rules made doing so less generous.

Only 39,822 people made a deferred claim for the state pension in 2023/24, compared with 87,548 in 2016/17.

Those who reached state pension age before April 2016 and chose to delay taking their payment had the option to take the amount they missed as a lump sum, with some interest included, or a higher pension worth 10.4 per cent more for each year they delayed taking it.

But the system changed for those who reached state pension age after 6 April 2016.

These pensioners can still choose to defer, but they do not have the option of taking a lump sum, and only get a higher pension worth 5

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