Eight reasons you might decide to defer your pension

According to the latest figures from the Office for National Statistics (ONS), average life expectancy in the UK from the age of 65 is about 19 years for a man and 21 years for a woman.

This means that based on the current State Pension age of 66 (rising to 68 by 2039), your retirement savings will need to last around two decades at least, and your workplace and personal pensions three decades, as you can usually dip into these sooner. Under current rules, you can access defined contribution pensions once you reach the age of 55 (rising to 57 in 2028). The length of time your pension needs to last means that many people may benefit from waiting to take their pension, so they can increase their savings if possible, to ensure there is sufficient money to last the rest of their lives. You can learn more about how defined contribution pensions work in our guide What is a defined contribution pension?

If you have a defined benefit or final salary workplace pension, your retirement age will usually be 65, which is when your employer stops contributing to your pension and you can start to receive an income from it. Find out more about defined benefit pensions in our guide What is a defined benefit pension?

You are able to calculate your life expectancy, based on national averages, using this tool from the ONS, although bear in mind that your actual life expectancy will depend on your health and personal circumstances.

Author: wpadmin

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