Should l Delay taking my NRA60 for 2 months

[61Gary]

Hi

I am a deferred member in section B , with my NRA60 Pension due in January 2021.

Would l be better off delaying taking my pension until April 2021 as my pension would have the previous years CPI figures added to my pension and lump sum. Or would l get these increases regardless if l take my NRA60 pension on my 60th Birthday in January 2021,

Thanks in advance for any help.

[heapsy]

Hi

I am a deferred member in section B , with my NRA60 Pension due in January 2021.

Would l be better off delaying taking my pension until April 2021 as my pension would have the previous years CPI figures added to my pension and lump sum. Or would l get these increases regardless if l take my NRA60 pension on my 60th Birthday in January 2021,

Thanks in advance for any help.

I would have thought that it might not be a good idea to defer your pension. Firstly, you will lose the two months of payments. Secondly, if the CPI figure is quite low, it could take years for you to make up lost ground, so to speak.

[61Gary]

Thanks for the reply Heapsy.

That is my predicament, that said my NRA60 pension last year increased by £500 and my lump sum by £1,600, though as you say that depends on CPI figures which were high last year.

[heapsy]

Thanks for the reply Heapsy.

That is my predicament, that said my NRA60 pension last year increased by £500 and my lump sum by £1,600, though as you say that depends on CPI figures which were high last year.

Published today. CPI figure DOWN from 2.1% to 1.8%. Hope that helps.

[RobertT]

The inflation figures used when working out how much our pensions increase in April are those for the previous September. So the important rates for this year are:

CPI - 2.4%
RPI - 3.3%

[61Gary]

Thanks for the feedback,

Looks like l will have too wait till September 2020, to see what the inflation figures are and then work out the increases to both my NRA 60 pension and lump sum , to see if it’s worth deferring my pension that’s due to start at the end of January 2021 my 60th birthday for 2 months, till the start of April

Would l be right in believing if l take my pension on my birthday at the end of January l will not receive any CPI increase for the financial year.

[RobertT]

I believe you would still get an increase from April. But it would be pro-rata because you'll only have been drawing your pension since January. Although I'm happy to be corrected on that.

[61Gary]

Thanks Robert

I will take onboard yours and Heapsys comments,