Acutuary reduction or not ?

atush

madeinireland wrote: »

Atush - I'm not 100% sure on this but I expect to take fixed protection sometime before April next year assuming it's offered.

If that is the case then I believe I would be banned from making any further pension contributions - otherwise your suggestion is exactly what I would do.

Just goes to show, if salient facts are not presented, and we can't read minds, we waste our time making suggestions.

marlot

madeinireland wrote: »

Unfortunately individual protection is not an option if your pension does not exceed £1m by April next year and mine won't.

At least that is how I understand it.

I think you have it right. my pension wasn't big enough for ip in 2014

robin61

madeinireland wrote: »

It costs me about £30k per year in living expenses and as I would not be working during my years of deferment that would have to come from savings - so it would take me some 30 years to be in credit as a result of deferring - so I'm beginning to wonder if it's worth it.

As long as you still have enough income in later years there is a lot to be said for not sacrificing a big chunk of savings in order to defer taking the pension for 3 years or so. Personally it will take me 20 years to start making a profit on defering and honestly I expect that when I am fast approaching 80 I will be slowing down and will probably need less income. Provided of course I live that long !

jamesd

madeinireland wrote: »

I have worked out (with a few assumptions of course) that my pension would go up by £1260 by delaying a year. This changes to £1008 after 20% tax. ... It costs me about £30k per year in living expenses and as I would not be working during my years of deferment that would have to come from savings - so it would take me some 30 years to be in credit as a result of deferring - so I'm beginning to wonder if it's worth it.

Say you were to borrow the 30k. Or just take it from savings. The increased after tax income is 3.36% of £30k for the one year of delay. If using savings that looks like a better deal than you can get on plain savings, not so much so if you are using investments. Of course it's an increase for life.

If you'd invest the money you could end up getting more for your £30k than the increase so it doesn't look particularly great compared to that.