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Pension tax free lump sum
Comments
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Its not really a lot, its only £160 a week with index linking
Hardly princely even with a state pension on top once you get to 65...
Well, let say you want to spend 40 years to get that kind of income by 60. It would require contribution of roughly £230 every month (not sure if the calculator do inflation increase every year) and if you got lucky enough to reach 7% growth overall.
I agreed heartily with gadgetmind.
I would be quite happy if I got that amount by the time I retire.
Cheers
Joe0 -
gadgetmind wrote: »Err, that's a rather large pension which would require a pot of well over £200k to have accumulated if you were paying for it yourself. This is 4x what most people in the private sector manage to accumulate by state pension age.
It is highly likely that the OP has payed for this pension, through employee pension contributions and could have been doing so for 40 years.0 -
It is highly likely that the OP has payed for this pension
If it is indeed his own defined contribution pension fully-funded by himself with (perhaps) modest employer contributions, then I apologise.
However, if it's one of these "magic money tree" final salary schemes ...I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Once you're in a new job it'll probably be a good idea to pay off the loan. Until then best to keep it so that you have the capital available to boost your income for a while, if needed. It'll cost you a bit more in interest for a few months but that's worth paying for the flexibility.0
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gadgetmind wrote: »If it is indeed his own defined contribution pension fully-funded by himself with (perhaps) modest employer contributions, then I apologise.
However, if it's one of these "magic money tree" final salary schemes ...
Well since the OP said he worked for local government I would imagine it is http://www.lgps.org.uk/lge/core/page.do?pageId=100438
Which is a funded final salary scheme, funded that is from investment growth, member and government contributions0 -
I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I would pay off the loan, esp if the interest rate is over 4%0
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