For many of us, the state pension is the only income we will get in retirement, so we need to make the most of it. Anything that could make it stretch further needs to be considered.

That’s why it’s so worrying that a quarter of Britons approaching retirement are unaware that they are not obliged to draw their state pension when they turn 66.

Instead, they can defer taking it and in return they will get more money later. This option will be increasingly attractive as more of us work into later life to make ends meet.

If someone continues to earn an income in their late 60s – particularly if it’s quite a good one – then state pension deferral really starts to make sense.

That’s because HMRC will tot up all of their annual earnings – including from the state pension – and subject them to income tax.

If, say, drawing the state pension while also working pushes somebody into paying basic rate tax at 20 percent or higher rate tax at 40 percent, deferral suddenly looks more attractive.

There’s a double benefit.

By delaying taking your state pension even for just a few weeks, pensioners will get more money when they finally do take it.

If you are employee, working for longer may also mean you can pay more into a workplace pension scheme, which should further boost your income when you finally retire.