Should I take company pension early?

[philv]

Hi,

I have a small pension worth only about 400 p/m (100k pot).
It is due to start at age 62 in 4 years time.
It is a final salary scheme from years ago.

What are the pros and cons of taking this pension early?

If i am no longer working, and i leave it in the pot, does the pension tend to go up by rpi?
And if i take the pension, does it also go up by rpi?

If so, whats the benfit of waiting?

Thanks

[PeterTTT]

I think you should comtact the pension trustees as they will be able to provide you with a transfer value (you mention 100k pot?) and also what the penalties are for dawing 4 years early and also what the annual increases are.
Alot of the decision will depend on your personal circumstances and risk tolerance to potential fluctuation in income.
Do you have any dependants you want to leave some benfit to etc?
Maybe you want to draw a potentially tax free lump sum from it either now or in the future and have a reduced pension then going forward?

Perhaps not the answer you wanted but to make the correct decision you need to know the numbers from the trustees first as pension schemes differ from employer to employer!

[philv]

Thanks,
I have rung and asked for illustrations.