Pension payments, in advance or arrears?

dunstonh

srcandas wrote: »

Just a thought being paid a year in arrears may be very attractive as it presumably moves the payment into the following tax year. Thus (under the right circumstances) if you have the cash flow this could reduce tax.

It may be but then it can also mean less money over the whole term potentially in case you die before the next payment is due.

Ignoring guarantee period/spouse provision. If you select say annually in arrears and then die in month 9, then no annuity payment is ever made if you select "without proportion". if you select "with proportion" then there would be 9 months worth paid out but with proportion would pay a lower annuity than without proportion and that may negate the increased benefit.

srcandas

Sorry accidentally deleted this. It was three/four posts up

dunstonh wrote: »

They will send what you ask them to supply. If you dont ask them to supply specifics then they will send default options.

Yes Dunston as often you are right and once again it is an example of hopeless inefficiency by a member of the finance industry. (and some might suggest fraudulent).

Although their documentation says "it is in arrears" with no caveats in reality it is possible to ask for it in advance. So with only 7 weeks notification of a very critical decision (if I do not action the GAR on the specific day it will be lost) I am sent 12 pages of information which is only correct in part and does not offer the options. They offer that I can request various options and each time they will send out the full 12 page pack once again. I mean who gives a !!!! about the planet.

Suggestion:

Payment time intervals: monthly [] 3 monthly [] 6 monthly [] yearly []

Payment to be made: in arrears [] in advance []

Please tick one from each group

Yup a child of 4 could have come up with that. Well beyond the finance industry of course :rotfl:

And I asked Scottish Widows if by being paid in arrears annually I would be paid more. After five minutes while they consulted a technician :rotfl: they said yes but didn't offer how much or how it is calculated. So I will write in again. As Mr Farage would say "You couldn't make it up"

Blondheadon I'd just demand everything you want and let them sort it. The danger is of course that they will screw it up and delay payment but best of luck :beer:

jem16

srcandas wrote: »

But with a pot of £2780 I wonder what percentage an IFA would want?

Ah ok - not worth it unless you have an existing relationship with an IFA. Otherwise I would imagine at least £500 as a fee.

Rodders53

It really does depend on the Scheme (and should be clearly spelt out in the literature and pension illustration statements provided by them to your husband).

Mine is paid monthly, mid month, 1/2 in advance and 1/2 in arrears... the same as when I was employed. Pay date is 1 day later for the pension though.

{Used to be in arrears but when they moved weekly paid staff into monthly pay - in the 80s? - they came up with this mid-month compromise deal, for all}.