retirement looming early question

btbright

Hi, been made redundant and leaving company pension.
do I take a lump sum
or full pension
or reduced pension
thanks in advance:beer: :money:

exil

NOt enough information!

Please state

full pension
amount of lump sum
reduced pension
how old you are

btbright

Hi
sorry more info
full pension £4700
lump £20000
reduced pension £3000
Im 58
many thanks

tanith

Can I be rude and ask if you are male or female? and if you intend to carry on working or retire?

GPR

Dont know where you work but if in Civil Service or Post Office or similar joining Benenden Health care is an option which CAN ONLY BE joined prior to retirement, and only costs around £70 PER YEAR ie not per month. See their web site.
http://www.benenden-healthcare.org.uk/
Obviously this is not really directly related to your posting but thought it might be useful to you or others.
THE IMPORTANT POINTS TO NOTE ARE THAT PREVIOUS CONDITIONS ARE COVERED HOWEVER CANNOT JOIN ONCE YOU HAVE RETIRED.

Please note I am not connected in any way to this body but joined recently.

btbright

Hi, I m male and thought I might work part time

MABLE

GPR wrote: »

Dont know where you work but if in Civil Service or Post Office or similar joining Benenden Health care is an option which CAN ONLY BE joined prior to retirement, and only costs around £70 PER YEAR ie not per month. See their web site.
http://www.benenden-healthcare.org.uk/
Obviously this is not really directly related to your posting but thought it might be useful to you or others.
THE IMPORTANT POINTS TO NOTE ARE THAT PREVIOUS CONDITIONS ARE COVERED HOWEVER CANNOT JOIN ONCE YOU HAVE RETIRED.

Please note I am not connected in any way to this body but joined recently.

Not sure what this has to do with the price of fish or the posters original post. Why do you think it would be benefiicial to him when the heading is retirement looming.

tanith

Hi again, I recently took early retirement due to ill-health, (we are the same age by the way) and I took a lump sum and the reduced pension as I thought having the 25% within my control (I put it in a high interest account for the time being ) to use or save at my leisure would give me more flexibility financially . If you take the larger pension then you are on that fixed sum forever...........

EdInvestor

What other retirement income do you have in prospect and when does it kick in?

State pensions forecast here:

https://www.thepensionservice.gov.uk

wotsthat

Hi Tanith

This sort of question comes up on a fairly regular basis and when the numbers are crunched (I haven't done the sums by the way) in basic pounds and pence it seems that taking the enhanced pension is best.

However, I would have taken the lump sum as well simply because I think a bird in the hand is worth two in the bush. By taking the enhanced pension you would break even at some point in the future and you may not live that long. By taking the lump sum the money is your's now and £20,000 today is going to be worth more than £20,000 in the future.

A lot depends on whether you have other means of income. If you do then there's less point in gambling on life expectancy and you may as well take the cash anyway.

If you are going to be claiming pension credits then £20,000 in the bank may affect your ability to claim.