Hi Plotter - there are a few points here worth considering.
(1)First of all your health now and in the future
(1)First of all your health now and in the future
Hi Plotter - a few points to consider here before taking the final decision:
(1) As you do not have a crystal ball will you be healthy enough to enjoy the larger monthly pension compared to your present health and age to enjoy a lump sum to spend and enjoy as you please.
(2) Contact Newcastle pensions office for a projected forecast of your state pension.
(3) When you reach the age of 65 your tax allowance, if it does not alter in the meantime, will be over
(1) As you do not have a crystal ball will you be healthy enough to enjoy the larger monthly pension compared to your present health and age to enjoy a lump sum to spend and enjoy as you please.
(2) Contact Newcastle pensions office for a projected forecast of your state pension.
(3) When you reach the age of 65 your tax allowance, if it does not alter in the meantime, will be over
Excellent advice from Colin, but he forgot to tell you that when you attain the age of 65 the extra tax allowance you might have hoped to get is whittled away
Keep the info coming folks,most helpful,when I am at home on Monday I will try and go through it all and decide what is best.(Or at least what I think is best.
The sheer variety of answers to your question Plotter just shows shat a minefield pensions are.
I stand by my advice near the top, for two main reasons:
Firstly you must talk or consult with someone who fully up to speed with the regulations and the current and future pension arrangements as far as they are known. This is to ensure you receive up-to-date advice from someone whom you know and can re-contact if things start to change shape.
The second reason, I have already hinted at in the first - being able to re-contact a professional adviser may be of significance in their advice goes pear shaped, and you should then at least have some leverage towards compensation for any bad advice given.
I bow to the experience of others on this forum in respect of pension knowledge, but without knowing them personally or professionally I consider it to be fool hardy to take what unsubstantiated or corroborated advice has been offered on this forum without further detailed and informed consultation.
I stand by my advice near the top, for two main reasons:
Firstly you must talk or consult with someone who fully up to speed with the regulations and the current and future pension arrangements as far as they are known. This is to ensure you receive up-to-date advice from someone whom you know and can re-contact if things start to change shape.
The second reason, I have already hinted at in the first - being able to re-contact a professional adviser may be of significance in their advice goes pear shaped, and you should then at least have some leverage towards compensation for any bad advice given.
I bow to the experience of others on this forum in respect of pension knowledge, but without knowing them personally or professionally I consider it to be fool hardy to take what unsubstantiated or corroborated advice has been offered on this forum without further detailed and informed consultation.
I took a lump sum before i was 65 and got taxed on the amount plus what i was earning so that amounted to quite a hefty tax. Then when you do retire you get taxed again as your pesion money is added to your privare pension so you get taxed on that, you cannot win. Except it enabled us to do a lot of things earlier whilst we were healthy enought to enjoy it.
Why did you pay tax on the lumpsum it should be tax free unless higher than you life time allowance
Interesting subject pensions. What I have not seen is whether the OP opted out of SERPs as that could have quite profound affect on the decision. I worked for the same company for 46 years although my pension is only based on 43 years service as I retired at the age of 58. I had a non contributy pension which had not opted out of Serp's. I was equally fortunate that my company provides me with a tempoary pension, equal to the state pension, until I am 65. So therefore decisions were slightly easier to make. My view in relation to lump sums was a bird in the hand was worth two in the bush and as a result both Margaret and I took the maximum lump sum availabale to us. Although this meant a reduced company pension I estimated that my outgoings were a long way below my basic income. The lump sum as allowed us to pay off our mortgage, and when necessary purchase new cars as an when require and still left us with money in the bank. If we did not spend so much time touring in Europe I reckon we would be in a position to save, but for what! You need to make a decision that will provide you with the maximum benefit in retirement. If you are a house owner you always have the option to downsize later on, thus filling up the coffers a bit!
David
David
Current pension rules allow you to take up to 25% of the value of your pension as a tax free lump sum. However you do have to be a certain age for this to take affect.
David
With that many pensions, the best thing is to seek professional advice. pension rules keep changing all the time.
I had 2 comapany pensions the first one was a non contributary which I was allowed to take when I was 50, I took the tax free lump sum and a monthly reduced pension( increasd with RPI every year).
I took early retirement at 52 with the second pension was the same I took the tax free lump sum and the same monthly pension( increased with RPI every year) till I die.
both monthly pension is taxed after personal allowance.
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