Take Pension Now or in 2 years - 7 years?

100949football

Really a "post" on behalf of my wife.
After 22 years service with the BBC my wife took redundancy 11 years ago. She had been in BBC Pension fund for her time in service. My wife is 53 and has been told she can take a modest pension NOW from the BBC or a Lump Sum NOW and a reduced pension - wait until she is 55 for (hopefully) increased figures - or wait until she is 60 again for (hopefully) increased figures again.
We currently have a small business and, although a pension to her now would be beneficial to our finances, we both take a relatively "modest" salary each.

Could anyone give us some impartial advice? It would be much appreciated!:o

dasherman

Assuming your wife is a member of the BBC final salary pension then the best time financially for her to take her pension would be at age 60.This is because if she takes it earlier then it will be reduced for early payment,in her case at age 53,by about 18%.

This might give you more info:
http://www.bbc.co.uk/mypension/en/sites/old/pages/leaving.shtml#deferring

Obviously if your in dire need for more income then you may feel compelled to take the money now,but you must be aware that this is a once only decision.