Should you delay your retirement?

22 July Reading Time: 4 minutes

This week, it was announced that inflation rose yet again to 9.4%, a new 40-year high. While this increase was expected, it comes as another blow to Britons’ finances. It means people’s money will not stretch as far as expected. 

Such circumstances will likely play on the minds of those approaching retirement. 

The prospect of no longer receiving a regular stream of income can be a daunting prospect at the best of times. However, with the cost-of-living crisis causing many budgets to tighten, those approaching retirement must face up to the prospect that their pension pot will not sustain the same lifestyle as they had planned or hoped for in retirement – or at least not for as long. 

Naturally, this begs the question, should Britons consider delaying their retirement? 

Potential benefits

Delaying one’s retirement is unlikely to be the most appealing option among pre-retirees. However, doing so could prove to be beneficial. 

First and foremost, delaying one’s retirement by a year or more will give pre-retirees more time to continue topping up their workplace pension. Furthermore, individuals will also continue to receive top-ups from their employer, as well as enjoy pension tax relief

For a brief period, people could even enquire with their employer about the possibility of taking part in a salary sacrifice pension scheme, which would allow them to save even more and strengthen their financial futures. 

Even if someone chooses to save into a private pension, rather than a workplace pension, they will continue to enjoy pension tax relief – and such top-ups will certainly prove to be valuable later down the line. 

Evidently, pushing back one’s retirement date offers more time to save and make the most of pension-related benefits. However, there are other options available for pre-retirees, which could help them to maintain their initial retirement plans.

Exploring options

For those with a fixed retirement date, it might be worth exploring higher-risk investments, which could make their money work harder within a shorter space of time. Indeed, if the investments perform well, they have the potential to transform a person’s retirement outcome, and substantially strengthen their financial situation. 

That said, investments do not guarantee strong returns, and there is always a risk that such investments will result in losses. As such, it is vital that individuals understand their risk appetite, and seek advice before placing their money in such investments. 

Alternatively, pre-retirees could consider placing their pension savings in a flexible-access drawdown. These schemes allow people to withdraw as much or as little money as they want, whenever they need to, allowing them to adapt their income to their current circumstances. 

Better yet, the money they do not withdraw remains invested within their chosen scheme. This means that their pot can continue growing throughout their retirement. As such, they reduce the risk of running out of money later down the line. 

Always seek advice

While all the above are perfectly viable options, it is crucial that individuals seek independent financial advice before making any alterations to their retirement strategies. 

For example, our team of advisers at My Pension Expert consider a client’s current circumstances, their risk appetite, and their retirement goals- we then provide tailored recommendations to suit them. This means that clients can be safe in the knowledge that they are on route to their best possible retirement outcome. 

Everyone has different needs; in some cases, they may need to delay their retirement to continue saving, while others may need to explore alternative investment options to remain on schedule for their desired retirement date. The key is to seek independent financial advice before making any major decision. In doing so, they will be able to achieve the financially secure retirement they deserve. 


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