What level of income is too low to make pension worthwhile

jamesd

That sounds like the IS people were engaging in what would be unlawful age discrimination if an employer did it. No problem if he actually chose to be retired, but trying to force someone to retire by denying them the money to live on while they look for work is pretty nasty and forces them to get a lower income for the rest of their life.

EdInvestor

jamesd wrote: »

That sounds like the IS people were engaging in what would be unlawful age discrimination if an employer did it. No problem if he actually chose to be retired, but trying to force someone to retire by denying them the money to live on while they look for work is pretty nasty and forces them to get a lower income for the rest of their life.

Not at all.I know people who have put pension funds into income drawdown at 50 because they were made redundant and couldn't get another job.

This is very common these days - indeed this is a major reason you can draw pensions before the normal retirement date on the contract, that's why the flexibility is allowed.

If anything, their pension funds have risen in value, as have their incomes, especially those who have done it in the last few years. A person with a With profits pension will be much better off if he took benefits six or seven years ago than he would be if he had waited till now.

You can't even say that those who annuitise will necessarily lose out, as they will have years of extra income payments which otherwise they wouldn't get.It takes years for a pension starting later, even at a higher rate, to make up the difference.