Draw DB pension now or defer a while?

baj25

Been a while but finally got figures for other DB.
These are from 55 to 65 inclusive and are 'on todays terms only and do not allow for any future revaluation' (which I assume to mean no annual inflation rise included, and compounding thereof).
10320; 10614; 11027; 11365; 11870; 12431; 12956; 13345; 13969; 14005; 14055.
Seems to be less reduction than my other scheme (could be because of compounding increases though) so doesn't look nearly so clear cut a case to defer. Thoughts/observations welcome if you have any, Brian

kidmugsy

baj25 wrote: »

These are from 55 to 65 inclusive ...
10320; 10614; 11027; 11365; 11870; 12431; 12956; 13345; 13969; 14005; 14055.

Only a 27% reduction: that's pretty good value for you if you start it early.

Have you thought of requesting a CETV for the other one? By transferring you might get better value out of it than by waiting to 65.

atush

If you take the pension (and having not given us figures dont know if worth it or not) contribute at Least that amount if not more to a pension now.

Unless you are likely to die soon/early, cant think of an overly good reason to take a pension early- reduced- then pay tax on it. Absurd in a word.

jamesperrett

The last 3 numbers look very close - there seems little point in deferring beyond age 63 if they are correct.

atush

But they are 55 and still earning.

If they did take it early, and dont need the money, i'd be inclined to up pension contribs to that amount. And having now seen some figures, id agree the second DB is the one to take, if taking one.