early retirement in this climate?

daff

Hi,
I am 56 & have a deferred 22/60th worth of final salary pension that I could collect now most of it without penalty.
The deferred pension is index linked (up to about 4% approx).
I'm torn two ways.
Should I retire & collect this pension now (taking the maximum cash & uplift options) in case it disappears or would making myself retired/unemployed in this climate be stupid.
I would also (in this climate) take a hit on about £4K AVC's, I could leave it till age 65 but was planning to use it as part of the cash element.
My current job has a final salary but I have less than two years contributions. So I'd just get the payments back.

Without these prevailing conditions I had planned on retiring or winding down in about 2 or 3 years time with a P/T time job to keep the noggin active.
Opinions please.

EdInvestor

daff wrote: »

Hi,
I am 56 & have a deferred 22/60th worth of final salary pension that I could collect now most of it without penalty. The deferred pension is index linked (up to about 4% approx).Should I retire & collect this pension now (taking the maximum cash & uplift options) in case it disappears or would making myself retired/unemployed in this climate be stupid.

Why is it necessary to retire from your current job to take the deferred pension from your previous job?Surely you can remain working but still take the deferred pension?

I would also (in this climate) take a hit on about £4K AVC's, I could leave it till age 65 but was planning to use it as part of the cash element.

How do ytou mean 'take a hit"?

daff

Good questions thanks-
The company was taken over & one of the conditions was that you could not draw the previous company's pension & work for the new one.
Believe me I've tried.
I'm sure this can't be legal/enforsable can it?

My AVC's are share based in the low risk ones, but share based never the less.
I haven't asked for a new quote I just assumed they've fallen by a similar amount as my (low risk!) share ISA'a..

EdInvestor

Don't see your problem. The "prevailing conditions" won't affect your final salary pension and you've only got 4k in AVCs, not a life changing amount

Better to stick with your original plan.

ulster_exile

daff wrote: »

Good questions thanks-
The company was taken over & one of the conditions was that you could not draw the previous company's pension & work for the new one.
Believe me I've tried.
I'm sure this can't be legal/enforsable can it?

I work on a pension scheme which has exactly the same clause in the Scheme rules. I'm not saying that that makes it law since I'm not qualifed to know but it does sound a not uncommon clause. Presumably the intention is to prevent mass retirements when a large company sale produces a lot of people of retirement age who think it's a great idea to retire and work at the same time.

purch

early retirement in this climate?

You must be bonkers !!!

Somewhere warm like Southern Spain or Portugal....no way would I retire early in this climate !!!