Have you taken your pension early.

[dario]

Ok, I'm 55. The good thing about being 55 is that the government says that i can take my private pension early. I've been looking around for information on the web and there is ton's out there and lots of people that want to charge to help (have to earn a living). I read an article recently that got me thinking seriously about taking y pension now.

Apart from being well enough currently to benefit for the increased income and lump sum etc, the example showed clearly how if i left the pot growing until i was 66 the increase in annual income was quite small in comparison to taking the fund early. IE. if i held off for 11 years until my official retirement age of 66 the annual income would grow by a small amour of about £1-2k. However, if i took the pension now, and i lived long enough the income from now to 11 years hence would be more than £100,000.

in most respects this is a no brainer. I have not put in to my pension since i left full time employment so the accounts have remained dormant and are/were just sitting there waiting for me to get to 55.

If you have any experience of this or have any experience of a "capped drawdown pension" i would appreciate your experiences and advice. I'm pretty sure that i don't want to buy a bog standard annuity as the market rates are the lowest they have been for some time and i want to pass the pension pot on to my spouse or family on my demise.

Dario

 

[andicole0]

I would suggest you contact an independent financial adviser - preferably one recommended by friend or family.

My pension funds were all put into a managed fund when I gave up working and have grown much better than expected. I have recently 'extracted' 25%, the rest has been frozen in as much I can now only take a regular pension payment from it.

Andi.

 

[dario]

Andi thanks for that. I have contacted the IFA and am now reading the paid for by me report. It's the expirences of other I seek

 

[thepits]

I would suggest you contact an independent financial adviser - preferably one recommended by friend or family..

Agreed, depending where you are in the country I can recommend mine

 

[cossied]

I took mine 3 years ago and continued working, 3 issues, will it put you in the super tax bracket ? investing your lump sum in a safe secure and an earning environment but this could be considered income and attract 40% tax. You lose a % of your lump sum for every year before your official retirement age, at least that is what happened to me working for BT. For me it was a good move but I believe the % loss per year has increased since then. Also the FTSE was at 5000 then now it is heading for 7000 so share investments have done quite well in the last 3 years, every year I have used my max ISA allowance to move my investments out of the tax area. Good advice from a professional is crucial like in many things information/knowledge is king. good luck

 

[Adamski]

I used to develop drawdown pension products at a well known insurance giant. Happy to discuss in more detail over PM?


Sent from my iPhone using Tapatalk

 

[Jembo]

Whatever you do will be a gamble, no matter what advice you take.

- If you are SURE you can generate a better return elsewhere or pay off a debt that is costing you dear, take the maximum amount out because on this one occasion is tax free.

- if you're going to live a long time, then taking too much out won't help - crystal ball?

- Never take an annuity from your pension provider, they historically never give you the best rates but watch out for the Sharks.

... and that's if your pension hasn't been totally stolen by the time you come to claim it

 

[ronk]

There is more than just the financial element to consider - Quality of life is a huge factor and a factor that cannot be quantified in monetary terms!

 

[thepits]

There is more than just the financial element to consider - Quality of life is a huge factor and a factor that cannot be quantified in monetary terms!

eh? :?

 

[ronk]

There is more than just the financial element to consider - Quality of life is a huge factor and a factor that cannot be quantified in monetary terms!

eh? :?

I mean that money is not the only factor to consider when potential retirement comes along!
Dario says he is 55 - and that can be considered as a decent time to throw the towel in and enjoy some personal time.

 

[dario]

There is more than just the financial element to consider - Quality of life is a huge factor and a factor that cannot be quantified in monetary terms!

eh? :?

I mean that money is not the only factor to consider when potential retirement comes along!
Dario says he is 55 - and that can be considered as a decent time to throw the towel in and enjoy some personal time.

Yee haa! Ronk! you got it in one!.

I figure i've done my time now. I'm relatively well as is my wife and everything is paid off. I did plan to retire at 55 until i was prematurely ejected from my post in a big business. realistically if i was still working, i bet that i would lack the courage to throw the towel in, irrespective of my situation.

all i need to do is take the pension (as i have income from a few properties i own) and go and have a whale of a time making sure i spend every penny every month. I just want to tour Europe and the near/far east etc. Leastwise thats the way i see it at the moment.