MadModder

The Breakroom => The Water Cooler => Topic started by: John Rudd on July 12, 2014, 07:17:34 AM

Title: Pension options
Post by: John Rudd on July 12, 2014, 07:17:34 AM: So now I have some figures from my package, one option is to take a state levelled pension.....is this a good idea or not?

Having looked around on the net for advice it all seems a minefield....... :coffee:

Anyone got any advice?
Title: Re: Pension options
Post by: lordedmond on July 12, 2014, 10:38:29 AM: John

Honest answer is I do not know it's been 17 years since I had to deal with it

My best answer would be to have a chat with a recommended financial adviser

SIL is a FSA registered freelance mortgage advisor I will see him and DD1 plus GK,s Sunday
I will ask if he has any info

Stuart
Title: Re: Pension options
Post by: Bigbadbugga on July 12, 2014, 11:21:36 AM: They're always advertising this on the telly and radio, the money advice service 'ask ma'

Supposed to be easy to understand and has calculators for you to put your personal circumstances in etc....

https://www.moneyadviceservice.org.uk/en/categories/work-pensions-and-retirement

Had a look myself regarding mortgages and found it easy to understand, so hopefully it will be of help to you.
Title: Re: Pension options
Post by: lordedmond on July 14, 2014, 02:00:21 AM: John

I had a word with SIL

Pensions are not in his field so he cannot offer any help

But he did say consult a IFA

Sorry I cannot help this time

Stuart
Title: Re: Pension options
Post by: John Rudd on July 14, 2014, 03:40:01 AM: Thnx Stuart for trying,

Had a word with one of our union reps, he says to go for it! :beer:
Title: Re: Pension options
Post by: philf on July 14, 2014, 03:40:43 AM: Quote from: John Rudd on July 12, 2014, 07:17:34 AM
So now I have some figures from my package, one option is to take a state levelled pension.....is this a good idea or not?

Having looked around on the net for advice it all seems a minefield....... :coffee:

Anyone got any advice?

John,

I'm far from being an expert on such matters but it seems that a levelled pension would give you an increased income from your company pension until you start to draw your state pension. Your company pension would then decrease accordingly.

If you were to depart this mortal coil before or as soon as you start to receive your state pension then you're 'quids in'. The longer you live the less you'll have benefitted to the point where you'll have lost out.

Have a look at http://forums.moneysavingexpert.com/showthread.php?t=3143856

An IFA would be able to advise but at the end of the day it would be up to you to compare numbers and to make the decision.

Hope this helps.

Phil.
Title: Re: Pension options
Post by: John Stevenson on July 14, 2014, 03:52:30 AM: Probably not applicable in this case but be aware that from April 7th next year [ 2015 ] you will have the option to accept all of your private pension as a lump sum instead of the current 25% tax free lump sum and the rest going into buying an annuity.
Tax at usually 20% will be payable on the 75% balance and could go higher depending on your circumstances.

I can't wait as I have a Barclays pension that isn't worth the paper it's written on and for me to even get back what I have paid in, let along what it is worth I will have to live to 92.
Title: Re: Pension options
Post by: Arbalist on July 14, 2014, 05:16:56 AM: I have both private and company pensions. I can take the private pension as a lump sum (albeit paying tax on some if it) but the new rules don't apply to my company pension as it's a final salary scheme. :(