If you are considering delaying taking your pension, it is advised to look at your reasons why. If it is in the hope that the annuity rates will rise, then you should also consider what income could be lost in the meantime.
As with any financial investment, there are many things to consider, such as when to take your pension, what options you have or if should you delay taking your pension, whatever option you decide, it is always best to speak to a financial adviser first because it could cost you.
It is all about working out the balance. Holding on for a raise in annuity rates could leave you with a more generous annual income. However, the rise in rates is not guaranteed and may also still be significantly lower than the amount you could gain by drawing your pension earlier.
It would be best if you considered the long-term impact of holding out for a higher annuity rate, too. Waiting a few years to achieve a higher rate may mean it would take decades to recuperate the income lost during the period you waited for the raise.
Working out when it’s best to take your pension can be confusing to anyone. Our team of expert independent financial advisers and retirement specialists can talk you through the options best suited for your circumstances. They will even help you work out a personalised cost of delay figure to help you decide if you want to draw your pension earlier rather than later.
For any questions about your pension options, including the cost of delaying your pension, please contact our team, and they will be happy to help.