Main site > MoneySavingExpert.com Forums > Essential Money > Pensions, Annuities & Retirement Planning > BT A new voluntary pension increase offer (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
BT A new voluntary pension increase offer
Reply
Views: 2,847
Thread Tools Search this Thread Display Modes
# 1
patalford
Old 09-05-2013, 9:32 AM
MoneySaving Newbie
 
Join Date: Mar 2011
Posts: 4
Default BT A new voluntary pension increase offer

BT have wrote to advise me that over the coming yearthey are to offer me a new option regarding pension increases.
It says it will give me the option to receive a higher pension now ,in exchange for receiving lower pension increases in the future.
Can any pension experts on the Forum offer advice?
patalford is offline
Reply With Quote Report Post
# 2
Linton
Old 09-05-2013, 10:14 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Aug 2008
Posts: 4,659
Default

Possibly, but not until people can see the details. It all depends on the numbers.
Linton is offline
Reply With Quote Report Post
# 3
tylerbabe
Old 03-09-2013, 11:14 AM
MoneySaving Newbie
 
Join Date: Jun 2013
Posts: 1
Default BT Pension offer

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
tylerbabe is offline
Reply With Quote Report Post
# 4
mgdavid
Old 03-09-2013, 12:24 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Aug 2009
Posts: 2,562
Default

Quote:
Originally Posted by tylerbabe View Post
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
see post #2 - if numbers and facts are provided you will get other opinions and thoughts.
A salary slave no more.....
mgdavid is offline
Reply With Quote Report Post
The Following User Says Thank You to mgdavid For This Useful Post: Show me >>
# 5
jamesd
Old 03-09-2013, 2:51 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: May 2006
Posts: 15,799
Default

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 2:54 PM.
jamesd is offline
Reply With Quote Report Post
The Following User Says Thank You to jamesd For This Useful Post: Show me >>
Reply

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT +1. The time now is 4:03 AM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 22 October 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

TuneChecker Top Albums

  • ED SHEERANX (DELUXE EDITION)
  • SAM SMITHIN THE LONELY HOUR (DELUXE EDITION)
  • VARIOUS ARTISTSNOW THAT'S WHAT I CALL MUSIC! 88

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.