Think about when you will take benefits from your pension
1. If you choose to retire early, then expect to receive a lower income from your pension than you would get if you had waited until normal retirement age. This is because your pension pot will be more thinly spread as it is expected to pay out for extra years reducing the annual income you'll receive.
2. Once you have taken an income from your pension it will no longer be invested, so there's no opportunity for further capital growth. Bear this in mind when you decide how early or late to retire.
3. In principle, if you put off taking benefits from your pension for a time, it should provide you with a higher level of income when you eventually start drawing it. What's more, if you continue to pay contributions into your pension fund during these extra working years, you could significantly boost the value of your scheme.
4. If your pension pot has fallen in value recently as a consequence of the current economic crisis, there's a strong case for leaving it invested where it is to allow a few extra years in which the value can hopefully recover. Of course, there are no guarantees, but if share price growth is better in the coming years, it coulsd wokr wonders on the final size of your pension pot.
Read Why delaying your pension makes sense to find out more.
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