deferred pension

steveh6874

I have a small  deferred money purchased pension which is currently  £27000 which goes up 7% per year , the retirement age on this pension is 65 but my retirement age is now 67 , will it be better to take the pension on my 65th birthday or leave it untouched until I retire at 67 
thank you 

Dazed_and_C0nfused

As you have asked this question presumably you aren't in need of it.

So the question really is where else would you get a guaranteed 7%?

steveh6874

for your information I am trying to get the most pension I can at my retirement age 67 so that's nothing to do with it , thanks for nothing 

hyubh

steveh6874 said:

I have a small  deferred money purchased pension which is currently  £27000 which goes up 7% per year , the retirement age on this pension is 65 but my retirement age is now 67 , will it be better to take the pension on my 65th birthday or leave it untouched until I retire at 67

That's a bit unclear. A deferred pension is a defined benefit (DB) pension; a money purchase pension is a defined contribution (DC) pension. Is this a GMP only pension with fixed rate revaluation...? (Or perhaps DC, but with a DB underpin that comes to the same thing.)

On the retirement age, I would guess you mean your state pension age (SPA) is now 67...? Unless you have a recent public sector pension (and a revaluation rate of 7% says you haven't), your SPA will have no connection to the NRA in any other pension. If you do have a GMP only pension, your NRA will remain 65 (assuming you are male) and a statutory late retirement factor will apply were you not to take it at 65. If you have some other sort of DB pension, then any late retirement factors will depend on scheme rules.

Albermarle

Firstly when you say it goes up 7% a year , do you mean that is guaranteed? or it has just happened to grow around 7% a year in recent years ?
Often the retirement age mentioned with a pension, is just a default age and does not really mean anything . Normally you can take these pensions from 55 or leave them untouched until you die. Unless it maybe has some special conditions linked to a guaranteed  7% yearly uplift ?

xylophone

How old are you now? What other pension (other than state pension) do you have?
Have you obtained a state pension forecast?
You mention a deferred "money purchase" pension- do you mean MP with a DB underpin?

steveh6874

hi xylophone I am 55 ,  its a money purchase plan with underpin , I have full state pension at 67 , I just wanted to know was it worth not taking it at 65 and leaving it until I am at my new retirement age of 67 would it be worth it 

thank you 

xylophone

 its a money purchase plan with underpin 

I am wondering whether this is a GMP underpin. At 65, you get the better of investment performance or GMP at leaving revalued at Fixed Rate  of 7% to age 65?

What does your scheme booklet have to say about taking benefits?  What is offered?

Dazed_and_C0nfused

steveh6874 said:

for your information I am trying to get the most pension I can at my retirement age 67 so that's nothing to do with it , thanks for nothing 

Surely that's all to do with it.  You don't need it at 65 and want it to be as much as possible at 67.

So if you took it at 65 and invested it elsewhere where would get a guaranteed return of 7%/annum?

xylophone

So if you took it at 65 and invested it elsewhere where would get a guaranteed return of 7%/annum?

If the 7% is related to fixed rate GMP revaluation, it wouldn't apply after age 65?

There could be GMP revaluation after GMP age of 1/7% I suppose?

I think the OP needs to read the scheme booklet and come back and tell us what benefits the scheme offers and how they may be taken.