Can I cash in my pension?

meuk_85

Yeah i understood that, but by the time it comes the pension will probably be worth around £8000 (possibly more or less, it went up by nearly 1k in 2 years), so 25% would be £2k

jem16

meuk_85 wrote: »

Yeah i understood that, but by the time it comes the pension will probably be worth around £8000 (possibly more or less, it went up by nearly 1k in 2 years), so 25% would be £2k

Obviously the longer you leave it, the better the annuity rate (if that's what you are going to do with the rest of it) will be. Age 55 is not a good age to be taking an annuity.

As to the lump sum, yes it should also increase although obviously no guarantee.

geofh

Any advice on how to protect a pension pot? I have put quite a lot of money into one pension (with Standard Life). But it seems to be losing value at 10% to 20% per annum (before inflation) over the last 4 years. Standard Life just blame the stock market, but my pension seems to have fared much worse than (e.g.) the FTSE.

dunstonh

But it seems to be losing value at 10% to 20% per annum (before inflation) over the last 4 years.

It shouldnt be. Even with stockmarket volatility you should only have seen around a 5% loss in 2011. A 9% gain in 2010. A 22% gain in 2009 and a 30% loss in 2008. That assumes 100% UK equity as a guide.

What investments do you have that are losing 10-20% per annum as I dont think Std have any available like that in their stakeholder or personal pension.

notquiteapensioner

Can anyone please recommend a private company that may be interested to purchase my annuity pension rights? I know that professional advice counsels against such a move, but I have made adequate provision for my old age and the terms of the pension are lamentable.

The current surrender value in the 'pot' is approximately GBP21k and I am currently able to take only 25% in cash from the fund as a tax-free amount because it (slightly) exceeds the government's GBP18k ceiling. I recall seeing that some schemes have a market value substantially in excess of their apparent scheme value and would like to explore this if anyone of you can recommend or suggest someone to contact. Thanks. NQAP, 61, Surrey.

bankhater_1965

jem16 wrote: »

Obviously the longer you leave it, the better the annuity rate (if that's what you are going to do with the rest of it) will be. Age 55 is not a good age to be taking an annuity.

As to the lump sum, yes it should also increase although obviously no guarantee.

even though you may be correct with your figures , lets not forget that drawing your pension at 55 will give you approx 23 years as the average male life expenctancy in the uk is 78 if your lucky !! , i will be going for mine at such age of 55

dunstonh

Can anyone please recommend a private company that may be interested to purchase my annuity pension rights?

You have no rights to sell the pension. it isnt yours to sell.

I know that professional advice counsels against such a move, but I have made adequate provision for my old age and the terms of the pension are lamentable.

Its not a case that we advise against it but there is no legal way to sell it.

The current surrender value in the 'pot' is approximately GBP21k and I am currently able to take only 25% in cash from the fund as a tax-free amount because it (slightly) exceeds the government's GBP18k ceiling.

The £18k limit is ALL pensions, not just one.

I recall seeing that some schemes have a market value substantially in excess of their apparent scheme value and would like to explore this if anyone of you can recommend or suggest someone to contact.

The only schemes are scams and in breach of HMRC rules.

jamesd

bankhater_1965 wrote: »

even though you may be correct with your figures , lets not forget that drawing your pension at 55 will give you approx 23 years

No it won't. Half of males aged 55 in 2012 are expected to live for 30.7 years. For women it is 33.8 years. (XLS spreadsheet). Based on 2008 data.

bankhater_1965 wrote: »

the average male life expenctancy in the uk is 78 if your lucky !!

The average male life expectancy in the UK is not 78. The cohort life expectancy for a male born in 2012 is 90.5 years. For a female it is 94.0 years. (XLS spreadhseet). Based on pre-release 2010 data.

It's common for the press to use inappropriate numbers (say period life expectancies instead of cohort) or for people to use life expectancy at birth then subtract their age in the incorrect belief that that will tell them the life expectancy for their age.

bankhater_1965

jamesd wrote: »

No it won't. Half of males aged 55 in 2012 are expected to live for 30.7 years. For women it is 33.8 years. (XLS spreadsheet). Based on 2008 data.

The average male life expectancy in the UK is not 78. The cohort life expectancy for a male born in 2012 is 90.5 years. For a female it is 94.0 years. (XLS spreadhseet). Based on pre-release 2010 data.

It's common for the press to use inappropriate numbers (say period life expectancies instead of cohort) or for people to use life expectancy at birth then subtract their age in the incorrect belief that that will tell them the life expectancy for their age.

male life expectancy 2008-2010 is 78.4 i dout 12 years have been aded for a lifestyle 2 years later , i reckon in the 70s is amore realistic age for a average male to be honest , i certanly would not work on 90.5 years this would meen the high would be 100 and the early deaths at 80 , i cannot possibly believe that , ill stick to my late 70s and under no dout will i be leaving my pension any longer than i have to on a final salery pension were i will recieve a lump sum and a monthly payment or increase or decrease either within the allowance at the grand old age of 55

Aegis

You're looking at period life expectancy rather than cohort life expectancy. In essence, this means that you're including, for example, infant mortality in your calculation of life expectancy for someone who is already 55. The tables linked to by Jamesd show the expected life for someone who has already attained the starting age (e.g. 55) and in what year they attained that age (e.g. 2012). The result in the table is the expected life remaining for that person, and for the example given it's 30.7 years for a total expected age of a little under 86 for a man turning 55 this year.