Retirement Age Setting In Pension Site

[Deleted User]

I intend to retire at 60 and have previously discussed my plan which fingers crossed will keep me funded sufficiently through retirement.

This plan involves paying in to my company pension plan until I retire at 60 but not drawing on this until my State Pension kicks in at 67. The company pension tapers down the risk level of the investments from year 9 before retirement so my question is what age should I set my retirement age in the pension to? Should it be my actual retirement age of 60 or when I intend to draw on it at 67 so the risk level remains higher for longer?

Albermarle

Normally should be when you intend to start taking the pension .
In reality 'retirement age ' and ' taking pension age ' are not directly related .

I would also research how much this pension reduces risk, as often they seem to go a bit too far in that respect , especially if you intend to drawdown the pension over many years .
Not taking enough risk is a risk itself .

[Deleted User]

I ask because my boss (63) with a similar sized pension pot has lost money over the last month whereas I (50) am £1400 up over the same period. I think I would be better off if I change my retirement date up to 67 to maximise potential returns after I get my annual forecast letter.

dunstonh

Are you drawing the pension pot in full at age 67 or do you plan to use income drawdown?

If drawdown, then picking age 99 may be better.  Or maybe select a non-lifestyle option.

[Deleted User]

dunstonh said:

Are you drawing the pension pot in full at age 67 or do you plan to use income drawdown?

If drawdown, then picking age 99 may be better.  Or maybe select a non-lifestyle option.

I plan to use income drawdown. Take the 25% tax free then a small monthly amount to supplement my State Pension.

I didn't know setting it to 99 was an option.

Albermarle

Before doing anything, you need to find out how the lifestyling is working, as different pension providers will not follow the same pattern.
Some derisking as you approach the time to take the pension is normal, but you need to see exactly what is happening and will happen .

Thrugelmir

Deleted User said:

I ask because my boss (63) with a similar sized pension pot has lost money over the last month whereas I (50) am £1400 up over the same period. I think I would be better off if I change my retirement date up to 67 to maximise potential returns after I get my annual forecast letter.

The best approach is to maximise your contributions to ensure that your objectives are met. Read the serious press and there's a number of forecasts suggesting that a decade of poor returns is possible. Stock markets aren't ATM's.  The only certainty when investing is uncertainty.