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    • Linton
    • By Linton 9th May 13, 9:14 AM
    • 5,593 Posts
    • 5,032 Thanks
    Linton
    • #2
    • 9th May 13, 9:14 AM
    • #2
    • 9th May 13, 9:14 AM
    Possibly, but not until people can see the details. It all depends on the numbers.
  • tylerbabe
    • #3
    • 3rd Sep 13, 10:14 AM
    BT Pension offer
    • #3
    • 3rd Sep 13, 10:14 AM
    Hi

    Did anyone get enough info to make up their mind whether to take up offer or not. I've looked at all info and at the end of the day still not sure. Seems to depend on : how long I will live, what the CPR rate will be in the future, and as this increase would mean I am over the tax free limit and therefore will have to pay tax on some of my increased pension what will happen in the future to tax free allowances etc. Have to make my mind up soon and am really confused. Thanks
  • mgdavid
    • #4
    • 3rd Sep 13, 11:24 AM
    • #4
    • 3rd Sep 13, 11:24 AM
    Hi

    Did anyone get enough info to make up their mind whether to take up offer or not. I've looked at all info and at the end of the day still not sure. Seems to depend on : how long I will live, what the CPR rate will be in the future, and as this increase would mean I am over the tax free limit and therefore will have to pay tax on some of my increased pension what will happen in the future to tax free allowances etc. Have to make my mind up soon and am really confused. Thanks
    Originally posted by tylerbabe
    see post #2 - if numbers and facts are provided you will get other opinions and thoughts.
    A salary slave no more.....
  • jamesd
    • #5
    • 3rd Sep 13, 1:51 PM
    • #5
    • 3rd Sep 13, 1:51 PM
    The key thing to know in addition to the offer terms will be your own health and hence your life expectancy. Such offers can be a good deal for those with lower than normal life expectancy. They are usually a bad deal.

    Bad deal: perfect health, no medical problems at all and nicely fit.

    Possibly good deal: heart disease, diabetes, alzheimers, very heavy drinking, very substantial smoking, many other health conditions.

    So key here won't really be the terms of the offer which you can be sure will be favourable to BT, but rather whether your own individual circumstances make it a good deal for you anyway, even though on average it won't be a good deal.

    Even if it is a bad deal in general, it might be good to do something like deferring the state pensions to increase the index-linked income from them, funding that in part from the increased early payments. You can defer once even if you've started to take the state pensions. The increase is 10.4% a year for each full year, pro-rated for less. The result can be a useful switch of more income at younger ages when more active, for less later in life, with more of that coming from the state pensions.
    Last edited by jamesd; 03-09-2013 at 1:54 PM.
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