Pension deferral question

gethelp

Have been looking at Martin's page re pension deferral and the graph seems to show you receive LESS by deferring. Is this because you would have to pay tax on the lump sum. Example after 5 years not deferred receive £25,500 but by deferring receive £19,200. Hopefully, someone can explain this to me. Thank you.

Drp8713

Its because the left hand column is how long you live, the longer you live the more you benefit from the deferral, if you die soon after youll lose out.

Linton

Martins calculations are based on deferring and then taking the 10%/year larger pension. Obviously it takes a few years before the larger pension pays back the money you didnt get by deferring. However the crossover point happens well before average life expectancy so most people will get a larger total income before death by deferring for a few years.