Take DB pension early,

Linuxgeek

Am I missing something here I'm 57 next month and plan to go at 60 

In the mix I have a small final salary that's forecast to pay around £4kpa at 65 

But found out if I take it next month they will pay me £3k pa so that's £24k before I get to 65 

Yes it's taxable but would just pay 3k it into my current DC pension for the next 3 years my current company will even put 6% on top

eskbanker

By accepting a lower rate in return for starting earlier, you win before 65 but lose thereafter, i.e. you're just 'robbing Peter to pay Paul' and the total amount paid out is likely to be broadly similar either way.

Linuxgeek

eskbanker said:

By accepting a lower rate in return for starting earlier, you win before 65 but lose thereafter, i.e. you're just 'robbing Peter to pay Paul' and the total amount paid out is likely to be broadly similar either way.

I'd have to live to 88 to be worse off cant imagine living that long tbh 

eskbanker

Linuxgeek said:

eskbanker said:

By accepting a lower rate in return for starting earlier, you win before 65 but lose thereafter, i.e. you're just 'robbing Peter to pay Paul' and the total amount paid out is likely to be broadly similar either way.

I'd have to live to 88 to be worse off cant imagine living that long tbh 

They'll be basing their calculations on actuarial tables with averages for life expectancy, etc, so if you have reason to believe that you won't make it that far, based on your knowledge of your health, family history, etc, then yes, starting earlier at the lower rate is likely to be beneficial in terms of total paid out.