Should I take my pension

K

Kenh123

Guest
I'm 61 and 'semi retired'. I have about 5 pensions from my last 5 employers. All are defined contributions. Should I take my pension now accepting that the return will be 30% down on what it was a year ago or hold out until I'm at least 65 or even later? My wife says cash in now but I'm an optimist in that I'm hoping that the world economy will have started to recover over the next 4 to 6 years and I might be back to where I was last year.
 
I agree with your view Ken. However aside from the risk of it not being right is the risk of your wife saying I told you so in 4-6 years time. There is nothing worse for families than issues over money.

My advice is that you both sit down with an independent financial adviser in the new year and whatever decision you make that you make it together. Even if you end up paying a fee, it will be worth it to know that you or your wife are comfortable with whatever decision you make.

Happy Christmas

Stephen
 
Have the fund managers or trustees been in touch with you about moving your funds from equities into safer havens (such as cash/bonds). It would be normal practice to move some/all of your funds to low-risk investments as you approach retirement. If these moves were started before the markets collapsed, you may be in a good position.

I'm not sure if you have the option to retire early. Most DC funds will only pay out at 65. Check with the relevant trustees to be sure.
 
With employers approval you can normally retire early. The scheme rules booklet will tell you for sure.
 
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