Should i wait to take my pension?

Pikecatcher

I am thinking of cashing in my pension early, and have got a quote.

However my birthday is in July, should I wait till after my birthday, will this give me more in my pot or will it be no difference?

Thanks

xylophone

I am thinking of cashing in my pension early, and have got a quote.

How old are you? Is this on the grounds of ill-health?

Who has provided the quote? What kind of pension is this?

Pikecatcher

I am 53, 54 in July. It is a frozen final salary pension, my normal retirement age would be 62

xylophone

frozen final salary pension,

Your pension is not frozen. http://www.pensionsadvisoryservice.org.uk/workplace-pension-schemes/final-salary-schemes/revaluation

See http://www.pensionsadvisoryservice.org.uk/personal-and-stakeholder-pensions/stakeholder-pension-schemes/minimum-retirement-age

Are you permitted to take benefits before the age of 55?

jamesd

Why are you thinking of cashing in your pension early? Do you have other assets like savings and investments?

mgdavid

there will be a commutation rate (a reduction of x percent) for every year you retire earlier than 62, so yes it will be beneficial to wait until another birthday has passed.

Pikecatcher

Yes I can take after 50; I have been made redundant and am looking to work part time, and have 2 other as yet untouched pensions (due to change of employer).

Look people I am not looking for advice, just a straight answer to my question. It looks like if I wait until after my birthday I will get more..........

dunstonh

Yes I can take after 50;

Most pensions are 55. Does yours have an exemption?

Look people I am not looking for advice, just a straight answer to my question.

You wont get advice on a website. However, you are not going to get a straight answer either because we dont know your scheme details and terms.

Anyway, you cant cash the pension in. So, that is your straight answer.

Pikecatcher

Sorry thats dead wrong, my scheme allows you to cash in at 50, i have the quote in front of me. can anyone answer my simple query, which is a generic issue re birthday?

dunstonh

Sorry thats dead wrong, my scheme allows you to cash in at 50, i have the quote in front of me.

No it is not dead wrong. The minimum age for commencing pensions in the UK since 2006 has been 55 unless the scheme has an exemption/protected age.

You cannot cash in a pension. There are some hybrid schemes that fall under pension legislation that do allow greater than 25% tax free cash and even 100% tax free cash in unusual cases.

can anyone answer my simple query, which is a generic issue re birthday?

Your scheme does not appear to be generic. So, it wouldnt be sensible to consider the generic answer which would be age 55.

atush

IF you have been told by the pension administrators you can take it at 50, then yes waiting for your bday will make it worth more.

But no, we cannot give you a straight answer, as you haven't answered any questions asked straight up (but instead used wrong or conflicting information).

As another note, as you have been made reudundant, are you claiming Jobseekers? Will you take full time employment if offered? Were you given a generous redundancy package?

If with jobseekers and the redundancy/savings, you can afford to actually look for another job first, this would help you. AS every year you wait will make for a better retirement.