Pensions

Pipe & Slippers said:
The question is, what's enough?
You'd have folks retiring and then falling back on State provision 'cos they'd blown it all
As Mr Jack alludes to above, you get the Tax relief on contributions in an attempt to prevent this
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We're back to trying to predict the future:p. My contravention opinion is that if you've been on benefits all your life, should the state fund that person's retirement as they've not contributed :eek:.
 
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Wasn't it in Australia where decades ago folks were cashing it all in, blowing the lot on fast men/women, loose cars, and round the world cruises, then reaching their early to mid 60's and having to go back to work?
I think I read this in an article about why a large proportion of Sydney's taxi drivers were pensioners
 
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throwaway4372 said:
this is why I worded it "when you have enough", so like.. you'd have to get an annuity that's enough to live on.
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Speaking of which, annuity rates seem to have increased considerably since the last time I looked...a few years ago £100k would get you £2,800 pa, but it's about £6,800 pa now....even more uncertainty for the OP
 
throwaway4372 said:
this is why I worded it "when you have enough", so like.. you'd have to get an annuity that's enough to live on.
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And give away all your capital?

Also will depend very much on what interest rates are doing at the time if you want to buy an annuity. They've doubled or more, people who bought them a couple of years ago must be crying, but then they were a terrible idea so maybe they wont even know!
 
I still wouldn't touch an annuity, I want control over my money. Maybe one day if 100k gave you 10k a year lol...
 
Foghorn Leghorn said:
Do you? I thought you could draw down until you empty the pot/snuff it?
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Unless they recently changed the law no.

Actually looking whats happening now then I think its all abandoned. (used to be 75)
So you may be able to yes.

Looking at many providers however they seem to allow purchase to 85 (some 90). Beyond that you wont be able to buy an annuity it would look like.

Certainly starts to sound risky of 90 year olds going a bit wobbly mentally needing to make decisions on draw down!
 
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I've been looking at this for myself recently too.

I have a defered pension pot for a place that I worked in for nearly 6 years, it wasn't a final pay pension but some sort of average pay penison (the last 10 years or something). Anyway, I kept reading how it's in the hole and that the overrally pot is short, etc. etc.

Finally got them to tell me how much was in my personal pot and I was quite suprised, as the amount that they was quoting made me think I had next to nothing in it.

I still can't shake the feeling that it's badly managed, as when compared to another pension pot that I've spent less time paying into, it falls short.

But google is telling me that my combine pension pots is above the national average of a person of my age.
 
theone8181 said:
Hi guys, I'm looking for a but of advise (I suspect all responses will be see an advisor). I am currently 37, aiming to retire at 55. I have an old final salary pension from my first job which has a transfer value of about 50k (was at the job around a decade). My current workplace pension is not final salary, but it's worth around 100k. Am I stupid for even considering transferring my final salary into my current scheme? My assumption is that the compound interest will benefit me more.
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Short version - leave it alone.

Regulator (FCA) has a starting point for advice with DB schemes - Unless there is a "need" for the money - Don't touch it.

You will struggle to find a regulated advisor who will transact a £50k DB transfer for a 37 year old - as it's simply not in your best interests at this time to move it.

You might want to, you might think it's better for you (flexibility/death benefits etc) but it's almost certainly not going to happen at this time - Review it closer to retirement.
 
theone8181 said:
Just found it on the site, £3300 at 55 so might just leave it at that. What I couldn't work out was why my current pension is worth double (compared to the transfer value), despite me having worked a similar length of time. The poster above has answered that though.

^ interesting that you need to pay somebody. Didn't know that (assumed places would give out free advice).
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aye, your current pot, if it makes it to 400k by age 55, will only be giving out about 12-13k a year if you make it into an annuity, so 3300 from the old pension is likely a decent amount.
 
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