At what age did you take your pension? Regrets or no regrets

[NorthernBoy]

I regularly change my mind as to when to take my RM pensions, i swing from leaving them to 60 to taking at them 55. I have also considered taking them at every year imbetween!

I know everyone circumstances are different but I am interested in other peoples choice of age and as to whether they had any regrets or were happy to take at the age they did.

I am currently 53 and am thinking of taking the lot (nra 60 and 65) at at age 55, even though it will be reduced. I have a friend who waited until 60, but who is now not in the best of health. He tells me he should have took it earlier and done more holidays etc.

[NWpostie]

You should take them when they're due as its disadvantageous to take them early you lose 5% for each year under and you're stuck with the lower payment for life.

[derricksmyth]

You should take them when they're due as its disadvantageous to take them early you lose 5% for each year under and you're stuck with the lower payment for life.

The lower payment does rise with inflation, you also have to bear in mind you will be getting your pension paid earlier even though you lose 5 percent for every year earlier you take it , ie getting it at 58 an extra24 months .but 10 per cent less. Pros and Cons

[worktotime]

You should take them when they're due as its disadvantageous to take them early you lose 5% for each year under and you're stuck with the lower payment for life.

yes but also take into account you will not be paying into it , and remember they have just dished out the money to get this piss poor deal through so now theres no pot if it went tits up , so me personally would take the lot and if you want to invest it in shares or what that would be up to , as i wouldnt trust these with my money , but thats just my opinion .

[heapsy]

It would be interesting to know if someone who took their pension early, say a few years back, might now regret having done so due to inflation over the last 18 months or so. Once the decision is made, there's no going back. Hence the reason we hear of so many people in the news returning to work because they have to. There seems to be a hard core of people who think there is a pot of money with their name on it, and that they have to get as much as possible out before they die. The reality is that if you are in the DB schemes then you only need about 6 or 7 years to get all your money back, so whats the panic? A lower pension due to early payment is even less likely to keep up with inflation. If you are in section C, taking your pension early also means a further reduction in pension due to the change from RPI to CPI. Roughly .3 /.4 of a percent less each time, therefore compounding the loss.

[Edward Hunter]

Took my NRA 60 at 57 and still working.I invested my lump sum so getting returns on it and with the pension payment its like getting a large extra wage every month.I Certainly have no regrets but one thing it does do is make you realise just how little you end up with for many years service (section C) If you want to properly retire before you receive your old age pension, you will need to do your planning and invest extra in to it

[max49]

I have waited, taking my NRA 60 at 60, I saved my lump sum and my pension which has enabled me to retire from RM at 63 1/2. I will be 65 later this year and will then take my next pension. I did take into consideration how much money I would need in retirement, I would look at my outgoings and how much I would receive in pensions including my state pension, and for me it was better to wait, making sure that I, hopefully, have sufficient funds in retirement. I have to say that, so far, I am happy with my decision, but each person's circumstances are different.

[baldrick]

I think it partly also depends on your personal life expectancy. If your family history and your own health circumstances suggest you might not last much longer than your 60's it may be worthwhile taking pension earlier.
I expected to last until 80 at least. I do not smoke, I don't drink alcohol much - at least since leaving RM. I am in fairly good physical health except that I am now Type 2 diabetic which does reduce life expectancy. I think I take after my father who lived to 86.

There is no way I would have taken my pension early unless financially desperate, which I wasn't. I took it at 60, and I'm now 72 and still expect to reach 80 at least. No regrets at all.

[RobertT]

This is a something that's been discussed on here many times and something that will always come down to personal circumstances and choice. But in my opinion, lots of people seem to have lost sight of what their pension is for.

We pay into them for decades with the intention of providing an income in old age. But for some, as as soon age 55 comes along, something seems to take over and it's all about short term gratification - holidays, cars, or whatever.

I can't speak for anyone else, but if the RM pension was all I had, I'd be able to retire at 60 and have enough to live reasonably well.
Like anyone else with a healthy amount of service, my NRA60 is worth the most and so I think reducing that is detrimental. While a reduced NRA65 might not be ideal, it would have a lesser impact. Add on the DBCBS to supplement the pension until state pension age(67) and I've got a fairly healthy income.
In that scenario, I think a reduction in NRA65 is acceptable, because it's enabling me to retire.

If I took it all at 55, there would be no chance of that and I'd be forcing myself to work until 67. Particularly if I'd spent it all in Mauritius or the Maldives.

For me, a few nice holidays won't make up for those 7 years of working!

I agree with points made up thread by:

Heapsy – Inflation and compounding can have a big effect on your income over the longer term and the bigger your starting pension, the bigger each annual increase will be.

Edward – The RM pension will only provide a minimum, so paying extra and starting young is a must if you want to retire early. I started paying AVC's in my mid 20's.

Max – The sensible approach.

Baldrick – Many seem to think they're going to die young. The figures suggest otherwise, posties average life expectancy is equal to the national average.

That's the way I see things, but ultimately it's each to their own. Good luck whatever you do.

[rockytony67]

Just a quick one but does the 5% loss per year decrease over the year or does it only apply to your birthday? ie if you take it on your 57 birthday you lose 15%, but if you take it at 57 and a half do you lose 12.5%?

[Valentina@1]

I’m 51 & by time I’m 55 I’ll have paid 35 years into Pension,can somebody tell me roughy what I’d get lump sum etc,aiming to take max lump sum

[RobertT]

Just a quick one but does the 5% loss per year decrease over the year or does it only apply to your birthday? ie if you take it on your 57 birthday you lose 15%, but if you take it at 57 and a half do you lose 12.5%?

It's pro rata, so taking your NRA60 at 57.5 would mean a 12.5% reduction. If you were to take your NRA65 at the same time, that would see a 37.5% hit.

[RobertT]

I’m 51 & by time I’m 55 I’ll have paid 35 years into Pension,can somebody tell me roughy what I’d get lump sum etc,aiming to take max lump sum

You're the only person on here that has access to your statements, so if you don't know, nobody else will.

[rockytony67]

Thanks again Robert.

[Valentina@1]

I’m 51 & by time I’m 55 I’ll have paid 35 years into Pension,can somebody tell me roughy what I’d get lump sum etc,aiming to take max lump sum

You're the only person on here that has access to your statements, so if you don't know, nobody else will.

I don’t understand it Robert