Some fascinating new modelling research1 has shone a light on the financial benefits of leaving your pension invested for longer.
Closely studying 232,654 different retirement claim transactions in the four years from 2019, has shown that just 20% of people have waited until their Selected Retirement Age (SRA) before drawing down on their pension. With the average amount withdrawn from a pension totaling £47,000, the modelling illustrates that if the money stayed invested from the age of 55 (when you can first draw on your pension) for 10 years to the age of 65, this could provide a boost of over half, specifically £24,661, rising to over £38,000 if invested to the age of 70.
1Scottish Widows, 2024
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.