Take Classic Pension early - timing for indexation?

jasser1492

I can take my civil service classic pension early (but reduced). Any thoughts on the timing of this in relation to indexation? Is it better to take it slightly after my birthday (which is in Feb) to wait for the indexation uplift? Or if I take it in Feb will it get uplifted once I am taking it? Given that inflation is (say) 9% I don’t want to miss out on any associated uplift. Thank you. 

NedS

Is it currently deferred or are you still employed in the Civil Service in Alpha, and hence your Classic pension is still active?

jasser1492

It is deferred, and not linked to my current employment.

NedS

Because it's deferred, isn't it already linked to indexation (CPI annually)? So it shouldn't matter when you take it (I think). The only thing that may make a difference is the lump sum, as if you were to take the pension before April, then it would not yet have benefited from the impending 10.1% CPI increase, so waiting until after April may result in a larger lump sum. Start of a new tax year too.

bluenose1

I have a deferred civil service pension that I was thinking of taking early but have decided to leave until 60 based on wise advice on this forum. Whereas my sister has took hers, which was a good decision for her due to her financial position.
Have you made a financial comparison of the different options? when I factored in inflation and the tax I would pay taking it early then I was better of leaving it as was as wasn’t that much financial benefit from when my State Pension starts.