Taking Pension early---- any thoughts?

[NorthernBoy]

Okay so I’m ex RM 52 now working an outdoor physical job which is hard and would like to retire asap. Ideally I want to finish at 55 if possible and am looking at the best time to take my pensions. Have a sipp and a small employers dc pension.

My original plan was to use my sipp from 55-60 and then take my NRA 60/65 all at age 60. Now I’m starting to think maybe it’s better to take my pensions at say 57/58 and take the % reduction, add this to my sipp and this should see me through okay to state pension age.

Have other people regretted taking their pensions early, do you with you had left them to the normal age. I realise all circumstances are different but am curious about what other people thoughts are.

Alternatively do you wish you had took them earlier than you actually did and had the money when you were younger.

Regards

[RobertT]

I think everyone knows my opinions on taking your pension early, and I also think that by now, everyone knows the potential pitfalls as well as the potential benefits of doing so.

Personally, I've always wanted to leave mine until NRA to maximise my income in retirement and have seen the addition of AVC's, SIPP's, ISA's, etc as the best way of giving up work earlier, aswell as supplementing my NRA60/65 until state pension age.

But as you say, it'll come down to individual circumstances and attitude towards life, not to mention the ability to afford your chosen path.

Taking it early might enable you to at least semi-retire earlier than you would do otherwise, but there's potentially a longer term loss in income to factor in.
Equally, working well into your 60's or even beyond might be great for your finances, but isn't particularly good for your work life balance.

The important thing is to get the balance right and retire/take your pension at the optimum time for you.

Some people get into the 'one more year syndrome'. Where the longer you stay on, not only the more you can save, but the longer you put off dipping into what you've already saved. The danger is that one year becomes two, three, five, etc and you end up in a very good financial position, but you're too old to enjoy it.

On the other hand, you can go too early and not have enough money to enjoy all your free time and you potentially have to go back to work.

My advice would be to take time to look into your own situation aswell as the wider issues of the cost of living and inflation, etc. As what might seem the best thing to do today, isn't necessarily the best thing for tomorrow.
That can work both ways!

[NorthernBoy]

You raise some good points there Rob, always worth getting a different perspective on things. I am still working on taking all my pensions at 57/58 but it will depend on my overall finances at that age. I would stop work now if I could afford it!