to take pension or not to take

kkkkatie_10

I will recieve a pension of £3500 if I retire at 60. I intend to keep working hopefully until I am 65. Should I take my company pension together with my state pension at 60 though it will be taxed or should I leave them until I am 65 my company pension would go up to £6000 but I am concerned that I would lose any entitlement to top up my pension by the state because I have left them for the 5 years in other words is a bird in the hand better than 2 in the bush. I would appreciate any advice from others maybe in the same position

Jennifer_Jane

Hi, I'm not in the Financial world, but until someone who is comes on, here is my view (so just personal). I am currently working (age 60 due to retire age 62) and have therefore deferred both Company pension and basic state pension until I retire as I will lose 20% (from next year, 22% this year) in tax and I need to boost all pension benefits. The pension people say that any increase to the basic state pension is included in the deferred amount (ie so you still benefit). I wasn't sure what you meant by 'topping up your pension by the state'? But you can defer your basic state pension and take your company pension if you want. Sorry, it's been a hard day and I may be misreading your post.

If you want to work and can do, then I would think the principle would be to let both company and basic state pension grow. In the meantime, at 60 (assuming kkkatie that you are coming up fairly soon to 60??) you will stop paying NI and you will eventually (ie the November or so after your 60th birthday), get the £200 fuel allowance (mostly - ie if you are single etc), so you will be better off from 60 anyway). Perhaps you could post age, and marital status for the IFAs who will see your post in due course.

Jen