A finance expert has explained how you could avoid paying tax and boost your pension by hundreds of pounds a year.

People about to claim their state pension may find themselves suddenly paying a large amount of tax thanks to the personal allowance remaining frozen at £12,570 a year, while the state pension continues to rise due to the triple lock. 

Even if you've already started claiming your pension, you could still take advantage.

The personal allowance is the amount of income you can earn from work and various side hustles without paying tax.

But as state pension income will now bring you £11,502 a year, you would need only an additional £1,068 from a part-time job, selling goods online or renting out a room to force you into paying tax.

Your pension could even push you into a higher tax bracket if you have significant earnings.

Harvey Jones told the Express the freeze on personal allowance is in place until the 2027/28 tax year. But there is one option to avoid tax that may be suitable for those approaching retirement, reports the Express. Research from retirement specialist Just Group reveals that one in four Britons are unaware that they are not required to draw their state pension when they reach 66.

Instead, they have the option to defer drawing their pension and receive a larger amount when they eventually decide to take it. Deferring the state pension won't be the right choice for everyone. The vast majority of retirees need every penny they can get and will claim their pension as soon as possible.

However, for those with other sources of income, deferring can bring significant tax benefits. Initially, deferring your state pension might mean forgoing income, but there are incentives.

Those eligible for the new state pension starting can earn a one per cent increase in their pension for every nine weeks they delay. This works out as almost a 5.8 per cent boost for each year of deferral.

With the current full new state pension at £11,502 annually, holding off for a year could mean nearly an extra £665. This additional amount will increase annually with the rest of the state pension under the triple lock.

Stephen Lowe, communications director for Just Group said: "It takes at least 15 years to recoup the pension you originally sacrifice. After that, though, you're in profit."

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Deferring becomes particularly advantageous as life expectancy increases. "Deferral therefore suits those who are in better health with higher life expectancy," Lowe said.

How to defer your pension

Deferring your state pension is simpler than you might think. Roughly two months before you turn 66, you'll receive a letter from the DWP asking if you want to claim your state pension.

If you don't respond, it will be automatically deferred until you decide to claim it. If you've already started claiming your state pension, you can choose to pause it to accumulate more money for the future. However, this option is only available once.