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    • Smiler52
    • By Smiler52 16th Mar 17, 9:13 AM
    • 5Posts
    • 0Thanks
    Smiler52
    HELP required ref to taking my pension
    • #1
    • 16th Mar 17, 9:13 AM
    HELP required ref to taking my pension 16th Mar 17 at 9:13 AM
    Morning all, this is my first time posting so please bare that in mind if I don't explain myself properly.
    I NEED help in relation to taking my pension at 55 I am currently 54. I am off work with depression, work related, at the moment I have no intention of going back to my current employer. (I will resign in the next few weeks/months as I cant stand the constant calls from my employer asking how I am and when I will return to work) - and live off my savings until I can take my pension next year. I have been seriously considering taking one of my pensions at 55 ( the pension pot is a private pension worth just under £60K. I am looking to take my 25% tax free to pay off all of mine and my partners debts which will leave approx £5K of the 25% to put in a savings account/ buy some more shares for emergencies etc. . ( My partner will still work full time). I will then need to take approx £6K per year to live on - to do this I am looking to put this pot in to drawdown - I am unsure to leave the pension with the current provider - Prudential or to move it to HL? (I will need to take at least £500 per month to pay household bills etc, and have approx £200.00 per month to live on on) - I know this isn't much however I do not waste money - all of my current debts are on 0% interest and the int free periods do not finish until after my 55th birthday - so for the most part I will put the money in to an account and pay off the CC'ds just before the int free periods finish,when the terms finish I will pay off in full and cut them/close them all bar one for emergencies and will have a low limit ie £1K . I have been stocking up on non perishable goods for the last 12 months to ensure we do not have this additional expense and I have calculated we will be OK on this point for the next two years. ( ie cleaning materials, washing powder, toilet rolls etc, etc, etc, you get the picture. - So I guess what I am asking is do you think this will work - I will possibly look for a part time job just enough to pay for holidays, but at the moment this is out of the question. I do have a small work related pension currently around £22K that is with my employer, that I and my employer are currently paying in to and and another two, one worth just under £10K and another currently valued at £80K which is a final salary pension from a previous employer, and then I will get a full SP at 67. What advise would you give to me under the circumstances, I am really getting very anxious at this stage and the thought of going back to my current employer is a no go.
    Thanks very much and sorry for the long thread.
Page 1
    • Number75
    • By Number75 16th Mar 17, 9:35 AM
    • 174 Posts
    • 190 Thanks
    Number75
    • #2
    • 16th Mar 17, 9:35 AM
    • #2
    • 16th Mar 17, 9:35 AM
    Things that struck me reading your post:

    - if the problem is with your current employer, and you already are OK with working part time for holidays, why not just look for another job?

    - what is the final salary pension detail? £80K would presumably be the transfer value. But you can't transfer it out of a final salary scheme without paying maybe £3K in advice fees - and it may not be the right thing to do. I don't think the best advice can be given without knowing what age that starts to pay out, for how much, and what are the guarantees with it?

    - the other thing that concerned me was you using YOUR pension money to clear your partner's debts! When they are still working! If you're going to retire now, you're looking at all the money you'll have... so why give it away to someone else?! Not even married. You might have been together for 30 years and still madly in love, but - call me cynical, sorry! - you could pay off £5K debt of theirs, then split. How are you going to feel then? Even if you don't split, I think you simply don't have money to spare to pay off other people's debt!

    - related to that, how secure and independent is your current financial situation? I think retirement planning has to consider you finding yourself single, through death or relationship breakdown. Once you leave the job market at 54, it'll be harder to re-enter. I'd look for something part time to stay employed personally. Do your sums only work because you are sharing housing costs? Insurance can cover death. If partner means your unmarried, have you made wills and nominated pension beneficiaries? But that doesn't cover relationship breakdown. Be very careful about retiring now on a limited pot if it absolutely NEEDS two people to make it work.
    • Smiler52
    • By Smiler52 16th Mar 17, 10:40 AM
    • 5 Posts
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    Smiler52
    • #3
    • 16th Mar 17, 10:40 AM
    • #3
    • 16th Mar 17, 10:40 AM
    HI thanks for the reply,, let me try and answer your concerns.
    1. I will be looking for a part time role and I have currently started to apply - but no way with my current employer.
    2. My final Salary is with my prev employer I do not intend to move that / touch it. that is staying as it is until I can take it at 60.
    3. My partners debt will only be £1k in twelve months time - this will free up approx £150 per month for us both to use, he has supported me in the past so its only fair that I do that and yes we have been together over 20 years, however I understand your concern.
    4. We both have life cover - with current employers and separate insurances. I appreciate my employer cover will cease at the point I leave - I have another stand alone life policy. The only major expense is our house - jointly owned. (Small outstanding mortgage - very low int rate fixed for the remaining term. (cars are newish (two years old and fully paid for). We have separate savings for day to day running of two cars that will cover us for 5 years each. . I have shares that pay a dividend at present ( various ) not all held in the same arena. If they carry on paying dividends they more than cover day to day bills such as gas, electricity etc, and if they were to stop we both have savings that pay interest, which again can cover day to day bills if the dividends were to stop. -
    5. We both have wills and nominated beneficiaries and I own another small house - hols home. (which I do not have any intention to sell).
    I appreciate your response, I am currently suffering with depression and wanted to sound people out.
    Many thanks
    • Number75
    • By Number75 16th Mar 17, 11:05 AM
    • 174 Posts
    • 190 Thanks
    Number75
    • #4
    • 16th Mar 17, 11:05 AM
    • #4
    • 16th Mar 17, 11:05 AM
    I'm sorry that you're ill right now, and rush you a speedy recovery.

    My initial thoughts from your first post was that you were cutting things quite fine with all the money you were likely to have.

    But now you've mentioned the back up of owning a holiday home and dividend paying shares, I'd say: life's too short to let a job affect your health when you have other options. Good luck in your decision!
    • coyrls
    • By coyrls 16th Mar 17, 11:47 AM
    • 825 Posts
    • 819 Thanks
    coyrls
    • #5
    • 16th Mar 17, 11:47 AM
    • #5
    • 16th Mar 17, 11:47 AM
    My advice would be not to make a major life decision while you are suffering with depression. Make the minimum changes necessary to be able to continue in the short term and leave planning until you are in a better postion to make major decisions.
    • davieg11
    • By davieg11 16th Mar 17, 1:16 PM
    • 232 Posts
    • 104 Thanks
    davieg11
    • #6
    • 16th Mar 17, 1:16 PM
    • #6
    • 16th Mar 17, 1:16 PM
    I would not resign in next few weeks/months if you are still getting paid. Even if you get £90pw statuary sick pay, it gets you bye until you sort your pension out.
    • Smiler52
    • By Smiler52 16th Mar 17, 1:40 PM
    • 5 Posts
    • 0 Thanks
    Smiler52
    • #7
    • 16th Mar 17, 1:40 PM
    • #7
    • 16th Mar 17, 1:40 PM
    Hi all, thank you so much for your responses.
    I was/am looking to stay off sick for as long as I can as I am getting paid, I am just so fed up with my employers constantly checking up on me, telling what to do etc. then they of course follow this up with, " we don't want to make you more anxious" and I know they are trying to get me back to work. I have very rarely taken time off work in the whole of my working career. and to some extent I am feeling guilty in regards to being off - I have been advised by a couple of my close colleagues who have been through the same thing to stay off and hold on as long as possible to get paid. My partner is being very supportive.
    • Neasy
    • By Neasy 16th Mar 17, 2:58 PM
    • 63 Posts
    • 71 Thanks
    Neasy
    • #8
    • 16th Mar 17, 2:58 PM
    • #8
    • 16th Mar 17, 2:58 PM
    Have you investigated the possibility of getting ill-health retirement rather than resigning?
    • Smiler52
    • By Smiler52 16th Mar 17, 3:15 PM
    • 5 Posts
    • 0 Thanks
    Smiler52
    • #9
    • 16th Mar 17, 3:15 PM
    • #9
    • 16th Mar 17, 3:15 PM
    Hi I hadn't thought about that - I am due to see occupational health/doctor in a few weeks time - Will that be possible for me being only 54? I have been with my current employer for just over 10 years. Does that have any relevance, and what impact is that likely to have on my pension held with them? I didnt intend to touch that until I was around 60 or even later.
    Thanks
    • AlanP
    • By AlanP 17th Mar 17, 12:52 PM
    • 855 Posts
    • 587 Thanks
    AlanP
    Possible - Probably, can't see age makes a difference. Take the case of a 25 year old left paralysed after a serious accident for example.

    Normally pension would be paid straight away so wouldn't have to wait until 60, but typically it needs to be a "can't ever work again" scenario in the main. Stress from current role / employer but able to do something else, somewhere else is something different.

    Agreement to pay is down to the employer and would also need to be inline with scheme rules. The pension could be affected in terms of whether they assess you as "never able to work again" or less severe I would think.

    Have you got access to scheme booklet / website or anything like that.

    Can you discuss with the HR department?
    Last edited by AlanP; 17-03-2017 at 12:55 PM.
    • Smiler52
    • By Smiler52 17th Mar 17, 12:55 PM
    • 5 Posts
    • 0 Thanks
    Smiler52
    HI thanks for your response - I will have a look through my paper work.
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