opting out of my bank pension

bendix

Bigmoney2 wrote: »

You can take all your pension at 55, BUT monthly payments will be reduced for taking it before scheme pension age. (this could potentially be a 50% reduction)

You are allowed to take an amount of up to 25% as a tax free lump sum (cash) by commuting some pension income, which will further reduce the amount paid as income.

The problem with a group of well-meaning amateurs giving guidance on this forum is that language gets sloppy, and that leads to misunderstandings.

You cannot 'TAKE' all your pension at 55. When you say that, the average Joe will read it to mean you can just pull the cash out and blow it on lotto tickets.

Perhaps it's better to say you can have access to your pension benefits at 55, which is more accurate and less confusing.

bendix

taking_stock wrote: »

no wonder the banks are in such a mess!!!!

The thought crossed my mind too. Fifteen years with a leading bank and no clue of personal finances or the difference between 'no' and 'know'.

God help the UK if this is what its schools and universities are spewing out into finance jobs.

Loughton_Monkey

bendix wrote: »

The thought crossed my mind too. Fifteen years with a leading bank and no clue of personal finances or the difference between 'no' and 'know'.

God help the UK if this is what its schools and universities are spewing out into finance jobs.

But be fair!

He could be in one of those jobs where they need little or no education - like doorman, post room operative, or Investment Banker.

dunstonh

He could be in one of those jobs where they need little or no education - like doorman, post room operative, or Investment Banker.

We used to have a guard at a sub branch due to low staff numbers. All he did was sit in the corner and grunt occasionally and make tea.

Loughton_Monkey

dunstonh wrote: »

We used to have a guard at a sub branch due to low staff numbers. All he did was sit in the corner and grunt occasionally and make tea.

Surely he could have sold a few structured products and earned a bit of commission on the side.

He might ask "Surely you want our high risk, leveraged, hedge fund?"

Customer would say "I don't, no"

He would write "I don't know"

dunstonh

Surely he could have sold a few structured products and earned a bit of commission on the side.

This is just before the banks went sales crazy. I was doing three nights a week college after work to pass the banking exams as that was the only way to get above a certain grade back then. The college class was full every week from young staff sitting the exams. Then the banks got rid of all that as knowledge was no longer seen as being important.

So, quite possibly, he could have sold some structured products if we used todays standards!

Chorlie

You state you never paid into it (the bank paid it all), therefore it cost you nothing, you can't therefore miss it and you can't miss what you've never had anyway.

It sound like a Final Salary Scheme (like I had), so best to forget about it and leave it where it is until your 60 and then look into your options.