There are many reasons why you could consider delaying taking your pension plan. Whether it is a corporate pension or from the state, you can delay your pension if you still have a guaranteed income. We are here today to provide some free pension planning advice and look at the reasons why this may actually benefit you in the future.
Read on and find out our free pension planning advice and the reasons why you should delay taking your pension.
Increasing Life Expectancy
First of all, and most generally, there is an increasing life expectancy in Scotland. Nowadays, the average life expectancy for men in Scotland is 76.8 years, and 80.9 years for women. With the retirement age continuing to follow suit, is there really any need to take your state or corporate pension packet at 55?
The pension age as it stands in the UK as a whole is 65 for both men and women. This is to rise to 66 for both genders by October 2020 and up again to 67 between 2026 and 2028. If you do stay in employment until the official state pension age, you should have a guaranteed comfortable income. This may mean that following pension planning advice and delaying taking your pension will be the best option.
Delay State Pension And Boost Payments
If you delay your state pension, it could result in a boost to the payments you will eventually receive. The information which follows is focused on those who will reach or have reached State Pension age after the 6th of April 2016.
If you decide to take our pension planning advice and delay taking your pension straight away, you will see your payout increasing by 1% for every 9 weeks that you have deferred the pension. This will make up a total of a 5.8% increase for every year you defer.
In monetary terms, this will mean your State Pension will rise from the given £164.35 per week to £173.89 per week. It will mean you are around £495.68 better off per annum.
Employer Will Keep Adding To Pension Fund
With every wage you receive, you will already know that both you and your employer must make a contribution to your pension fund. At the moment, your employer is paying in at least 2% of your annual salary while you invest 3% into your pension pot. From April 2019, this is set to increase, meaning you will have even more in your final fund. The figures will rise to 5% of your own contributions and 3% from your employer.
With a trend like this, it could continue to rise in size too. For every year you delay your pension, your employer will continue to add to the pot.
Pension Planning Advice
Remember you can always Contact one of our pensions advisors UK if you are unsure about the details surrounding your pension. We can give impartial, independent pension planning advice to get you feeling financially secure and stable. Try out our Retirement Planner Tool if you have any short-term queries.