Should you delay taking your pension?
Deciding whether to delay taking your pension depends on a variety of factors, including your age, financial situation, retirement goals, and personal preferences, so it’s essential to evaluate your circumstances first.
Life moves fast, and retirement can sneak up on you before you know it. But what if you’re not ready to retire just yet? You might want to delay taking your pension to a later date.
Deferring your pension means delaying your pension payments beyond the normal retirement age. This can offer a variety of advantages and could help you achieve greater financial stability, flexibility, and security in retirement.
- Increased retirement income: If you delay taking your pension, you could receive increased monthly or lump-sum payments, as you will have contributed to your pension savings for a longer period.
- Longer retirement planning horizon: Delaying your pension allows you to extend your retirement planning horizon, giving you more time to save, adjust your investment strategy and plan for your future financial needs.
- Increased financial security: Deferring can provide increased financial security in retirement too, because your money may last longer meaning you’re less likely to run out of money in later life.
- Continued employment: Delaying your pension might also allow you to continue working and earning income, which can help you save more for retirement or pay off debt.
Deciding whether to delay taking your pension depends on a variety of factors, including your financial situation, retirement goals, and personal preferences, so it's essential to evaluate your circumstances first. There’s no one-size-fits-all, so you might want to consult with a financial adviser to help you make the best decision for your situation.
If you decide to retire later than planned, please let us know by logging onto your online account and changing your target retirement date.
Related news & insights
-
New research shows the cost of funding your retirement has gone up
Most of us are saving more for our retirement, but with the price of essentials rising, it’s important to keep an eye on the amount we need to support ourselves when we retire. -
Is it time for your digital Midlife MOT?
Entering your midlife doesn’t have to mean crisis! Find out how your digital Midlife MOT can help you put things in perspective and plan for the future. -
Reviewing your contributions
It’s really important to keep a regular eye on your savings pot. Part of keeping track of how your savings are doing is checking how much you and your employer are paying into the Scheme each month and considering whether you are able to pay a little bit more. -
Reviewing your investment
The amount of money you and your employer pay into the Scheme is not the only way your savings pot can grow in value. Where your savings are invested, and how these investments perform, will have a big impact on how much you’re building up over time.