28th August 2023
Should I delay my retirement?
DELAYING RETIREMENT COULD BOOST YOUR CHANCES OF A SECURE FINANCIAL FUTURE
With the persistently high inflation rate, it’s crucial for individuals nearing retirement to evaluate the impact of escalating living expenses. Adjusting or postponing retirement plans may provide enhanced financial stability in your golden years.
Delaying retirement has various benefits for your financial future. It can provide more time to build up pension contributions, which can lead to a more significant income in later life, access to additional support from the government, and more extended periods for employers to contribute to workplace pensions.
CONSIDER YOUR CIRCUMSTANCES
On the other hand, there are some drawbacks to delaying retirement, including fewer years of employment for younger people entering the workforce, an additional taxation period and potential inflationary pressures on wages if salaries remain static over an extended period. It is also essential to consider your circumstances before deciding whether to delay retirement.
Factors such as your current health, lifestyle and financial situation should all be considered before deciding. Obtaining professional financial advice is essential to help you understand the implications of delaying retirement for your particular circumstances.
HERE ARE SOME REASONS WHY YOU MIGHT CONSIDER POSTPONING YOUR RETIREMENT
Increased State Pension: In the UK, you can defer your State Pension, resulting in a higher weekly payment when you later claim it. For every nine weeks you delay, your pension increases by…
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A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age).
The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available.
Your pension income could also be affected by the interest rates at the time your take your benefits.