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 retirement savings account and changing your target retirement date.
Related news & insights
-
Introducing our new responsible investment pension funds
We’re introducing new ways to invest in a sustainable future with 6 new self-select pension funds, available for members of TPT’s defined contribution schemes from the 30th of September 2023. -
TPT launches new self-select funds to enhance responsible investment choices for DC members
TPT is launching a range of new investment funds for its Defined Contribution members. -
How does your pensions knowledge compare to your peers?
Between December 2022 and February 2023, over 1,500 members who are currently contributing to a defined contribution (DC) pension with TPT responded to our latest research. -
Tax relief made simple
Your pension comes with all sorts of perks that make it one of the best ways to save for retirement. The money contributed to your pension saving is free from Income Tax and National Insurance, meaning that money that would have gone to the government is instead contributed to your retirement income.