News
March 2007
A good time to defer your pension
A record 1.2 million people are now working beyond their retirement age in Britain, an increase of 7.8 per cent since last year. For those who want to save there is a government scheme which offers 2 per cent above the Bank of England base rate to anyone who defers their State Pension.
Currently that means the scheme guarantees a return of 7.25 per cent (2 per cent above the Bank of England base rate of 5.25 per cent). This compares favourably with the rates high street and internet deposit accounts are offering.
Malcolm McLean, chief executive of the Pensions Advisory Service, the Government's retirement savings watchdog, says of the scheme: "This is a good deal provided you have got enough cash to be able to live without your state pension."