MSE News: Thousands forgoing pay rises due to pension apathy

GillsMan7

dunstonh wrote: »

I make no apologies. You confirm exactly what I was saying is correct and I thank you for that.

Well, I was able to make a point without resorting to insults. You weren't. I think that sums you up perfectly. I'm not an idiot by any stretch of the imagination. But feel free to carry on dismissing anyone who doesn't see things from your point of view as an idiot. Me? I'll carry on being open-minded thanks very much.

GillsMan7

jamesd wrote: »

GillsMan7, do you have any work pension that would have employer contributions anyway? if not, it's mostly moot for you because it's only this case that the story is writing about.

The current age for taking pension income is 55. A mixture of pension and non-pension things can work best but not everyone likes the pension restrictions. They certainly aren't convenient for early retirement or ill health ending of working life, say. Still, since you can hold commercial property for rental income in a pension and take out a mortgage in a pension to buy the property, you might want to not completely rule it out once you get closer to 55 and the point at which you could take income from property or other investments inside a pension.

Good question and good points all round I'd say. I'm currently running my own business so the answer to your first question is yes and no really. But I have worked for companies where they would match employer contributions.

I think - and I might be wrong here - that you can take 25% of your pension, tax-free, at 55. So I didn't think you could take all of it. Plus, I thought the age was being raised to 58 anyway (again, might be wrong here).

I'll concede a bit here, because you make an excellent point. A mixture of pension and non-pension investments for retirement is, as far as I can see, the best way to prepare for the future.

jamesd

At 55 you can take all benefits from your personal pensions. That includes both the 25% lump sum and income from the remaining 75%. No need to buy an annuity either. You could buy your office, if you have one, with a 75% LTV mortgage if you like, and pay your own rent into your pension, then back out to yourself as pension income.

There's no increase to age 58 discussed for this at present but you're probably thinking about the ongoing gradual increase from 65 to 68 for the basic and additional state pensions. But that only affects the state pensions, not any workplace or personal pensions.

AnonymousForObviousReason

dunstonh wrote: »

Ironically, to get the most out of a pension you are better off to die the day before you retire. The dependents get the full value of the money purchase pension tax free and outside of the estate (so not included for IHT)

Please can you edit this to say how having the person that earned the pension alive is much better value? GF just read this over my shoulder, didn't like the laugh and smile on her face. Else I'll tell her it goes to the dog home if I don't make it to retirement + a few years