Taking NRA60 at 55

[spaceman07]

Hi, I'm 55 at the end of May and thinking of taking my NRA60 benefits early and hanging on to my NRA65. I understand they'll be a 25% reduction roughly speaking but i can live with that. I've had a quote back already just need to send it back saying if i want to or not. Then they'll give me the full range of options. Will probably carry on working a few more years yet but will be out at 60 the very latest.

Anybody else done a similar thing? Would appreciate your thoughts.

[POSTMAN]

Guys chatting about it in here...
viewtopic.php?f=1&t=104314

[RobertT]

Guys chatting about it in here...
viewtopic.php?f=1&t=104314

But not specifically about taking benefits early!

[RobertT]

Hi, I'm 55 at the end of May and thinking of taking my NRA60 benefits early and hanging on to my NRA65. I understand they'll be a 25% reduction roughly speaking but i can live with that. I've had a quote back already just need to send it back saying if i want to or not. Then they'll give me the full range of options. Will probably carry on working a few more years yet but will be out at 60 the very latest.

Anybody else done a similar thing? Would appreciate your thoughts.

Regular visitors to this forum will know my opinion of taking your pension early. Which is, if you don't need to take it, don't take it!

Here's my reasons why:

A pension is for your retirement.
The 5% per year reduction will be with you for life.
It may actually mean having to work for longer.
You'll have less to live on when you do retire.
Annual increases will be less, in money terms.
You'll be losing another 20% in tax while still working.
The break even age is roughly 70 when factoring reductions to pension and lump sum, most people live longer than that. Average life expectancy for a 60 year old man is 84 and 87 for women.
You don't stop needing money just because you're over a certain age.

It's an individual decision, based on circumstances. But generally speaking taking your pension benefits before NRA is regarded as a bad move over the long term.

[spaceman07]

Thanks Robert, as always your input is excellent!

It's very tempting when the figures are Infront of you lol.
I think I'll leave it alone.

A) I don't need the cash (certainly within 5 years time)
B) Why pay 20% on it now.
C) What's the point in taking a hit with a reduction.

I was contemplating going at 55 until recently but will probably just plod on i think. You never know there's always the chance of redundancy further down the line another 2/3 yrs won't hurt.

[mrcurve]

I think it would be quite an income shock too, taking it early will boost your income for 5 years "pension, plus wage, plus lump sum," then when you retire at 60, no wage a reduced pension, no lump sum, to help get to your state pension, you could trap yourself into having to stay at work.

[Jack1960]

Lots of sensible prudent advice for you to take in, as for me I took it at 55, yes it's a reduction but I've enjoyed life more as a result.
It's 400 pounds going in at the end of the month and it's paid for holidays galore until 2020.
I want quality of life now and won't be hanging around watching itv3 in the afternoon when I retire next year.
Never saved a penny in 40 years despite earning good wages and as they say in Texas a fool and his money will soon be partying.
So have a good think about it and take in the excellent advice but for me I always think of Viv Nicholson

[spaceman07]

Yeah, I can see both sides of the coin. Obviously not taking it as Robert said you'll be better off in the long term. That said just taking my NRA60 early, I worked it out rightly or wrongly I'd be 75 before being any worse off. (Just with my NRA60). Although you've got to get that far first lol.

Then again if you don't plan to spend it what's the point?
It won't earn a thing putting it elsewhere.

My mother was put in a carehome last year, she would of been wiped out financially eventually the cost of it all. Nobody knows what's around the corner, your only here once.

[Skye2016]

Lots of sensible prudent advice for you to take in, as for me I took it at 55, yes it's a reduction but I've enjoyed life more as a result.
It's 400 pounds going in at the end of the month and it's paid for holidays galore until 2020.
I want quality of life now and won't be hanging around watching itv3 in the afternoon when I retire next year.
Never saved a penny in 40 years despite earning good wages and as they say in Texas a fool and his money will soon be partying.
So have a good think about it and take in the excellent advice but for me I always think of Viv Nicholson

How many year were you in mate for 400 month ?
Did you take it at 55 ?
I joined 89, left 2020 30 year full-time, just waiting on figures now,

[vmaxv4]

Thanks Robert, as always your input is excellent!

It's very tempting when the figures are Infront of you lol.
I think I'll leave it alone.

A) I don't need the cash (certainly within 5 years time)
B) Why pay 20% on it now.
C) What's the point in taking a hit with a reduction.

I was contemplating going at 55 until recently but will probably just plod on i think. You never know there's always the chance of redundancy further down the line another 2/3 yrs won't hurt.

You have always the option to ask each year for for your early personal pension quote which will give you an accurate up to date figures based on your age.

[Jack1960]

Lots of sensible prudent advice for you to take in, as for me I took it at 55, yes it's a reduction but I've enjoyed life more as a result.
It's 400 pounds going in at the end of the month and it's paid for holidays galore until 2020.
I want quality of life now and won't be hanging around watching itv3 in the afternoon when I retire next year.
Never saved a penny in 40 years despite earning good wages and as they say in Texas a fool and his money will soon be partying.
So have a good think about it and take in the excellent advice but for me I always think of Viv Nicholson

How many year were you in mate for 400 month ?
Did you take it at 55 ?
I joined 89, left 2020 30 year full-time, just waiting on figures now,

Took it at 55 after doing about 30 odd years .Got my nra 65 and cash balance couple months back.
Total pension now after tax is about 615 a month. Total lump sums over the years about 50 thousand

[Skye2016]

Top banana mate