Marvin OnumonuAnalysis from Just Group of Department for Work and Pensions (DWP) data found that 66% of people aged 40-65 were not aware they could wait to claim the State Pension after reaching the age.
Of those who did know, a third (33%) were not sure what would happen to their payments if they delayed, and 8% thought they would get the same or less if they put it off.
Only 10% of people aged 66-75 said they had delayed taking the State Pension.
The main reasons were not needing the money straight away (49%), being attracted to a higher income later on (48%) or wanting to wait until they stopped working (20%).
Stephen Lowe, group communications director at Just Group, said: “Deferring your State Pension is effectively a trade-off between receiving your full State Pension payments today or an increased State Pension later.
“Delaying the State Pension may not work for everybody but it’s certainly an option worth knowing about and exploring in more detail for those people who don’t need the money immediately.
“If you’re still working, deferring could help reduce your income tax bill in the short term and boost your pension income in later years when it may be needed more.”
Lowe added: “The decision requires careful thought. It takes around 17 years to break even if you defer the State Pension for a year so health and life expectancy are key considerations when weighing up whether you could benefit.
“Currently, any extra income accrued through deferring the State Pension offers protection against inflation – a valuable safeguard for those planning for a long retirement.
“Anyone who is unsure of their options can find further guidance from a range of sources.”
He said: “The Government’s free and impartial Pension Wise service is a good place to start while regulated financial advice remains the gold-standard.”
