Pension need to knows Official MSE Guide Discussion

dunstonh

delves60 wrote: »

hi i am 57 years old i have a pension and i wanted to take some money out now but my pension people said i had to have a pension of £50,000 if i wanted to take money out now . My pension is £17,000 on a g.m.p is this right what thay said or is it how thay work thanks

If they say that is the limitation of their plan then there is no reason to disbelieve them.

However, it doesnt mean it is a limitation on other plans. If you went to Currys to buy a television, they dont just sell one television. They sell dozens of them with different features and options. Some support the most recent advancements. Others are quite basic. Pensions are just the same. You get advanced ones, basic ones and older ones that cant meet modern requirements.

As you have safeguard benefits on a plan that is valued over £30,000 you will need to seek advice before you can do what you want to do. You may find the advice is not to do what you want.

delves60

hi yes that is my pot i wanted to drawn 25% money out yes it is GMP thanks foer your help

delves60

hi thanks i do belive them just wanted to find out if i could any thing else or if anyone else new of other ways to draw money out thanks

Silvertabby

delves60 wrote: »

hi thanks i do belive them just wanted to find out if i could any thing else or if anyone else new of other ways to draw money out thanks

You could ask your pension provider for a CETV (cash equivalent transfer value) with a view to transferring to a new pension scheme - but I think you may struggle to find an IFA willing to recommend that you give up your current benefits if they have valuable protections,

familyguy321

Hi,

I will soon be starting a part-time role in the NHS for 6 months. According to the table on this page, I will be contributing 5% as I fall within Tier 1.

I'm thinking of opting out as I've not had a pension before and I am in my late 20s, so there is no point in starting now.

Any advice would be appreciated.

FG

AnotherJoe

familyguy321 wrote: »

Hi,

I will soon be starting a part-time role in the NHS for 6 months. According to the table on this page, I will be contributing 5% as I fall within Tier 1.

I'm thinking of opting out as I've not had a pension before and I am in my late 20s, so there is no point in starting now.

Any advice would be appreciated.

FG

I'm sorry what is your reasoning that because you are in your late 20's there is "no point starting now"? Do you mean you are too old? Too young?

familyguy321

AnotherJoe wrote: »

I'm sorry what is your reasoning that because you are in your late 20's there is "no point starting now"? Do you mean you are too old? Too young?

Apologies for not being clear. I meant too old to start now.

My understanding from the MSE article is that I would need to contribute significantly more than 5% to make up for the years I have not been working.

FG

Aegis

familyguy321 wrote: »

Apologies for not being clear. I meant too old to start now.

My understanding from the MSE article is that I would need to contribute significantly more than 5% to make up for the years I have not been working.

FG

You're definitely not too old, and you will be losing out on this bit of the contribution if you opt out:

The employer contribution rate for 2016/17 to 2018/19 is 14.3 per cent of pensionable pay for both the 1995-2008 Scheme and the 2015 Scheme.
However, the Department of Health announced in March 2017 that they will introduce a levy on employers to pay for the administration of the NHS Pension Scheme. This levy is 0.08 per cent of pensionable pay and will be collected at the same time and in the same way as normal employer contributions. In practical terms, this means employers will pay 14.38 per cent of pensionable pay.

HappyHarry

familyguy321 wrote: »

Hi,

I will soon be starting a part-time role in the NHS for 6 months. According to the table on this page, I will be contributing 5% as I fall within Tier 1.

I'm thinking of opting out as I've not had a pension before and I am in my late 20s, so there is no point in starting now.

Any advice would be appreciated.

FG

You would be foolish to opt out.

Your employer is also contributing, significantly more than you are.

You say you haven't had a pension before, but last May you said you were contributing to your company pension scheme. Many small pensions built up whilst working can be just as good in retirement as one large pension.

AnotherJoe

familyguy321 wrote: »

Apologies for not being clear. I meant too old to start now.

My understanding from the MSE article is that I would need to contribute significantly more than 5% to make up for the years I have not been working.

FG

That is crazy thinking and perhaps reflects badly upon the MSE article, which I haven't read.

Put it this way, when you retire, you'll get a state pension, currentiy I think about £165/week.
Would you rather just have that, or additional income ? And if you'd like some additional income the best way of getting it woudl be to get pension income and the best way to get pension income is to have someone else pay for as much of it as possible.

So in the above example someone else posted if you put in 5% the NHS adds nearly 3x that and that ends up providing you a pension when you retire. If you work in a variety of jobs you'll end up with a variety of pensions. Suppose any one pension only forecasts it pays you £5 a week. And you never bother taking them it because £5 "isn't worth it, it's too late".

And now say you do that 25 time s in your working life. That's an additional £100/week you are losing out on.all because "it's too late" when actually it wasn't.

Or to put it another way you may have heard "don't let perfect be the enemy of good", eg in this case just because you can't get the perfect pension don't let that prevent you getting a good one.