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Cash in pension now or wait?
geoffH
Posts: 10 Forumite
I'm planning to cash in my pension for a cash lump sum and small monthly pension. The lump sum will pay off some credit cards. Thing is, should I do it now or wait a while? I received a quote today which was lower than one I received in May, and is valid for 30 days. Will it change significantly over the next couple of months ? So, should I cash in now or wait?
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Comments
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Unless you are desperate for cash immediately, I think cashing a pension plan early is generally a bad idea, especially in today's chaotic financial situation.I'm planning to cash in my pension for a cash lump sum and small monthly pension. The lump sum will pay off some credit cards. Thing is, should I do it now or wait a while? I received a quote today which was lower than one I received in May, and is valid for 30 days. Will it change significantly over the next couple of months ? So, should I cash in now or wait?
How many years are you from retirement?0 -
I received my pension as a lump sum last week on my 60th birthday and it had fallen in value by £1200 in just 2 months! :mad: I'm afraid I'm not totally up to speed with ALL of the goings on of the current financial situation but I'm wondering if my money would have devalued even more if I had taken it as a monthly income - would more and more of it been chipped away as the months went on?Take nothing but pictures, kill nothing but time, leave nothing but footprints to show you came by :smileyhea0
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Unless you are desperate for cash immediately, I think cashing a pension plan early is generally a bad idea, especially in today's chaotic financial situation.
How many years are you from retirement?
Hi Egd
I'm 55 and can essentially take it anytime from now, though I don't plan on stopping work for a good 10-15 years. The quote I have does show it's dropped in value since May so I guess it could either drop more or go back up?0 -
These fluctuations depend on what funds the money is invested in - stock market (shares) property, bonds, cash etc.
If you want the fluctuations to stop, shift the money into the cash fund.Trying to keep it simple...
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