Staggering your retirement is a strategy that could be considered for those: 

• wanting to ease into retirement
• wanting to prolong their retirement income
• wanting to retire early

Staggering retirement could be a good way to increase pension pay out or even cover the longer retirement period caused by increased longevity.
This means not taking all your pensions at the same age but deferring some for a few years so they can increase in value and provide for a prolonged retirement. 
 

Examples of Staggering

• Stephen is 67, has his own business and enjoys his work. He has a private pension plan and contributes towards a state pension. He doesn’t feel ready to retire yet but wants more free time for his hobbies. He decides to cut down his working hours and let his son take over. He pays himself a small salary from his business, claims his state pension and draws a small percentage from his private pension plan which won’t eat into his capital. When he does decide to retire full time, his capital will remain intact, and he won’t have to worry about income.
• Mary has health issues and is forced to retire early at 62. She knows that retiring early will prolong her pension period and she will need more retirement savings. She decides to draw an income from her private pension and defer her state pension till 70 to increase her retirement income.
• James and Alison have a 5-year gap between them. James decides to retire at 65 using his company pensions as income. Alison who is 60 decides to continue working for 5 years to save up more for retirement. The income from Alison allows them to save a portion of James’ retirement income to grow their retirement pot. When Alison retires, the extra 5 years of saving allow them to lead a comfortable retirement and they don’t have to worry about running out of funds later on.
• Andrew wants to retire early at 60. He has a defined contributions pension plan that he chooses to fund his retirement till he turns 70. (This means drawing a higher percentage monthly) This allows his deferred private pension and state pension to accumulate more value which will provide him with sufficient income for the remainder of his retirement.

Staggering pensions for early retirement or prolonging retirement income is a topic that must be discussed with your financial adviser so that they can determine if it is a viable option for you and if you will have sufficient income to maintain the lifestyle you desire.

Each person’s financial situation is different, and your adviser will create a plan of action for you to achieve this retirement method if you so desire. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.