Advice needed on whether to take pension now

lilac_lady

atush wrote: »

If you don't need it, dont' take it and let it grow(unless you have bad health).

Lilac heart felt advice is perhaps why so many retire so poorly these days?

I'm afraid it's heart felt advice because of personal circumstances.

missile

lilac_lady wrote: »

I'm afraid it's heart felt advice because of personal circumstances.

I agree with LL.

When one is younger, it is wise to save and ensure you have enough to be comfortable in our golden years. Now OP has reached the age where we have to reconsider our priorities.

There are no pockets in a shroud. :eek:

atush

But yet you could live longer and your money run out. It is a toss up.

thestens

JamesD could you please explain your reply it seems to be the most theoretical and backed by figures but I really don't understand what the figures are that you are talking about.

mark5

I would take the pension at 60 and enjoy it when you have your health.

Batchy

4k plus state pension 5k, plus additional state pension maybe another 5k, plus savings, interest, and premium bond winnings plus no mortgage, means you wont be struggling too much, plus husbands pension probably too, etc, etc.

jamesd

jamesd wrote: »

Looks as though the pension value goes up by 5.4% a year.

This is the increase in pension payment divided by the number of years, then converted to a percentage. On average one year of delay produces a 5.4% increase in the amount of the pension.

jamesd wrote: »

From the look of the numbers and your health it'll be better to wait until normal retirement age for the pension.

Your health is good so you have a good chance of living longer than the 88 years age that half of women of your age are expected to live to.

jamesd wrote: »

The commutation rate for the bigger lump sum is 12:1.

This is the increase in lump sum divided by the decrease in pension amount from taking a larger lump sum. Values as low as 12 are uncommon and mean that it's likely to be better not to take an increased lump sum and/or to take a lower lump sum. A good commutation rate would be over 20:1.

jamesd wrote: »

Means you're getting 8.3% plus the effect of increases in the pension by not taking the lump sum and you're not going to get 8.3+% return risk free anywhere else!

This expresses the 12:1 commutation rate as an equivalent interest rate so you can more easily see how good a deal not taking a larger lump sum is in comparison with savings accounts.

tescobabe69

I've just got back from the fourth funeral of a close friend in January, three from cancer one from a head on car smash, all under 60, so hows your luck?
Furthermore how much money do you think you will need when you are in your seventies & eighties ?
Retire, travel and enjoy your life while you can, you're a long time dead.

atush

We are talking statistics here for the OP as what is 'likely' to happen in her case.

The fact that one person was unlucky (or perhaps a bad driver) and 3 had faulty genes or personal lifestyle choices such as smoking or bad diet that lead to cancer, is not really relevant in this case. Although we take your point, no one should make decisions based on your recent funeral attendance. If the OP had been in poor heath, and had family hisotry of disease and early death, then our advice would be differentl.

Plenty of people in their 70's (and some in their 80's) are still quite fit and active. So could still enjoy life to the full if they have enough to live on.

thestens

Don't want to start a whole new debate but the details re commutation rate seems to suggest that this scheme ( Local govt therefore public servant) is not a 'gold plated' one but I guess I am being naive to think anyone would think that public service people deserve a good pension. It may also clear somethings up to say that I also get a teachers pension of about £1000 per month so does my husband. We also have income of approx £700 per month from two buy to let houses.