Taking NRA 65 at 55..

[roadrunner bill]

I know taking NRA 65 at 55 will be 50 % reduction.. but I will have it paid for 10 years.. more from 55 to 65...

Can someone who understands this better than me .. explain please..

Will I get this till I die and taking it 10 years early nearly the same as taking it at 65 because I'm getting 10 years more pension..

Thanks..

[RobertT]

The pension will be paid until death and there may also be spouses benefits afterwards too.

There are valid reasons why you could take your pension early, particularly if it enables you to make a life choice such as retiring. But based purely on averages and maths, it's generally best to wait.

Whether you get more overall will ultimately depend on when you die, which most people don't know too far in advance.

The average life expectancy for someone in the 55-65 age range is around 83 for a man and 85 for a woman. RMSPS figures state that members are on a par with that average.

Based on that and a bit of simple maths, a man will get about 28% more from 65 to 83 with a full pension than he would from 55 to 83 at half rate, with the break even age being about 75. An early payment reduction for the lump sum would increase that percentage and bring the break even age down to more in the region of 70.

Personally I'm not a fan of taking it early, but it's always going to be a decision you make based on your own circumstances. Some people will want more money upfront to enjoy while they're younger and others will see the longer term view.
Do what's right for you.

[roadrunner bill]

Thank you so much for your reply.... much appreciated..

I'm not 55 yet.. but nearly... so gives me a little time to have a think about it..