early retirement

lmarsh246

I am 60 in June and can take my pension then at £7927.81 a year plus a lump sum of £26912.82 or I can wait until I am 65 and take £10431.33 a year plus lump sum of £31293.98. As I am working I don't need the money yet but I want to know if financially I would be better taking it now and investing or waiting 5 years. Can anyone help?

saver861

lmarsh246 wrote: »

I am 60 in June and can take my pension then at £7927.81 a year plus a lump sum of £26912.82 or I can wait until I am 65 and take £10431.33 a year plus lump sum of £31293.98. As I am working I don't need the money yet but I want to know if financially I would be better taking it now and investing or waiting 5 years. Can anyone help?

Well it depends on a number of things so there is no direct answer to the question as you have put it.

In terms of the annual pension, ignoring inflation and tax etc. it will take you about 16 years to reach the breakeven point, when you would be about 81 - i.e. the money you could collect now versus the additional you money you would collect at 65.

However, you would have to consider tax implications etc. Its likely if you intend to carry on working you will pay tax on all of it in any case.

More to the point, is it a deferred pension scheme and different to the one you are in now with your current employer? If not, you wont have the option in any case.

I think you need to gather more information about your circumstances before making any decisions.