Pensions uugghhh!

[ansi41]

Originally Posted by deeley

I’d have a look at today’s news too, about pensions and age changes being sped up...
Always clobbers me...I’m only 44 and every new thing brought it seems to affect me!

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Hmmm I've seen another thread on this...it's scares the ≈≈≈≈≈≈ out of me having to work til 75 or beyond

[DisneyWannabe]

You can take 25% of the total pot tax free (I think). I *think* you can now take funds from your pot without actually drawing down the whole pension.

Definitely seek a good Financial Advisor, we have sought advice and although we haven't actioned anything yet we have had some solid information. Eg. it maybe be beneficial for you to fully encash your pension and invest it elsewhere yourself to recover a better return, this would depend on your specific circumstances.

[Alllovedisney]

I strongly recommend you contact Pensionwise. They will help you understand your pension pots. Their help is free and impartial. I’m surprised your illustration didn’t put the details in the covering letter or enclose a leaflet about them.

[ansi41]

Thank you guys, yes I have just seen something about Pensionwise so I might ring them next week. We also have an accountant and they have a pension guy in their office so may check with them for a bit of quick info too x

[disney332]

The minimum legal age at which you can take a pension in all but a small number of specific cases under current UK legislation is 55

Hope this news does not shatter your dreams

Disney332

[ansi41]

Originally Posted by disney332

The minimum legal age at which you can take a pension in all but a small number of specific cases under current UK legislation is 55

Hope this news does not shatter your dreams

Disney332

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Not at all, I've checked and definitely I can take this at 50 and I have it in black and white from my pension company.I think it was one of the "old fashioned" decent pensions and it was all to do with major redundancy package that we received that was agreed with the union at the time.
I will not be taking my whole pension pot, that I see is becoming more common these days, this is just a pension that is being taken early, if that makes sense

[DisneyDaffodil]

If you take your pension as a lump sum, 25% is tax free but you pay tax on the other 75%.

Pension Wise would be a good idea to talk you through the options available.

[Pumba75]

OP, from what you've said, the pension you have sounds like it might be a Defined Benefit scheme - that being the case, a lot of the points made in this thread will be irrelevant.

Pensionwise may be able to offer some guidance, but are set up mainly to outline options in relation to the "pension freedom" rules, which don't apply to a DB scheme.

No-one on here can tell you whether taking the higher lump sum/reduced income is the right thing for you to do, it depends on your income needs, what these might be in the future, and what the "proportionate cost" of taking that higher lump sum is in relation to your circumstances.

Any good adviser will give you an initial meeting free of charge, which at least may give you some useful information to help you make a decision. Alternatively, if you are currently working, your current employer may already engage an adviser/Employee Benefits consultant who would normally be happy to answer any questions you might have, and point you in the right direction should a fuller advice process be required.

[EssexSue]

We both elected to take our lump sums as we felt we then had it if you see what I mean. Obviously this is just a personal choice, not trying to give advice to others.

[Mexy02]

definitely sounds like an employers fibal salary defined benefit scheme ( one of the best ) and yes you can take at 50 as you would come under the old regulations for that scheme because of when you left . You can take your standard benefits which is a pension and a lump sum ( this is normally 3 times your pension tax free) but you can also maximise your benefits so normally ( for most schemes but check yours , they should have a booklet or info online on the scheme page ) you can convert £1 of your standard pension into £12 tax free lump sum up to 25% maximum , hence reducing your monthly income and giving you a larger lump sum . Many used to choose this option as they didn’t live to a ripe old age and interest rates for savers where much higher that’s they are now.
So you really do need financial advice as each person is different and no one knows how long you are going to live . Also decide do you want the lump sum ( many pay off mortgages etc now with it ) or a higher monthly income . It will help the advisor as well . You also could leave it by deferring longer , ask the company the differences but in some cases it’s better to draw it earlier but again depends on you and you alone.
Good luck but get advice. X