Pension Question

farquarpigmix

I know I can cash pension in at 55. My question is can I cash it elsewhere where someone pays more? They will give you more for your pension?

GhIFA

If by "cash it" you mean take benefits, then yes, potentially you can take them "elsewhere" - but it will depend on what type of arrangement it is, and what the best way for you to take benefits might be (as well as whether it is appropriate for you to do so at 55).

bigadaj

If its fi al salary or defined benefits then no, leave it where it is. If it is defined contribution then a good idea to shop around, so see an ifa who can provide you with the best deal.

Fifty five is very young to take a pension, and will often mean a low benefit rate due to the fact that's you may well have decades left to live, so need to consider whether to take now or later.

You can only cash in 25% anyway, the rest has to buy you an income.

farquarpigmix

Its a pension I stopped paying into. 2008 was the last time. So in fact its losing money each year. I have another one from other employment where I no longer work. I also have a little army pension which am told I can get when am 60. Heard rumours I could possibly get that when am 55 also?

Fifty five is very young to take a pension

Better in my pocket now when I can enjoy it.

Thank you for the replys.:T

opinions4u

farquarpigmix wrote: »

Its a pension I stopped paying into. 2008 was the last time. So in fact its losing money each year.

It will be invested. Investments go up and down. Find out about the investments. Get to understand them.

I have another one from other employment where I no longer work. I also have a little army pension which am told I can get when am 60. Heard rumours I could possibly get that when am 55 also?

Find out. A question to ask is "how much would I get now and how much would I get if I leave it five years?".

A hopeful question mark on a forum won't get you the answer though.

Better in my pocket now when I can enjoy it.

Ask the same question.

If the answer is that you'd get £100 a month now, but if you left it five years you'd get £200 a month until you die then it might be worth waiting.

farquarpigmix

opinions4u wrote: »

It will be invested. Investments go up and down. Find out about the investments. Get to understand them.

Find out. A question to ask is "how much would I get now and how much would I get if I leave it five years?".

A hopeful question mark on a forum won't get you the answer though.

Ask the same question.

If the answer is that you'd get £100 a month now, but if you left it five years you'd get £200 a month until you die then it might be worth waiting.

To get pension I will have to wait until am 65 or 66? Army pension is 60 I think? Heard rumours you can get this at 55 but not 100% sure.

2008 pension says at current value I could get £510 a year on retirement age. These are not big pot pensions.

After weighing up all the pro's & cons I would like to cash in at 55. I would like to know if I can sell them elsewhere rather than get what I will be offered by pension holders?

jem16

farquarpigmix wrote: »

To get pension I will have to wait until am 65 or 66?

That is the state pension and nothing to do with private pensions which can be accessed from age 55.

Army pension is 60 I think? Heard rumours you can get this at 55 but not 100% sure.

Yes you can but it will be actuarially reduced by around 5%pa for each year you take it early. So by taking it from age 55 you will lose 25% of your pension.

After weighing up all the pro's & cons I would like to cash in at 55. I would like to know if I can sell them elsewhere rather than get what I will be offered by pension holders?

Your Army pension is a final salary pension and should not be moved anywhere.

If the other pensions are money purchase schemes then you will be able to use the open market to search for the best annuity rate. You will be able to take 25% as a tax free lump sum and the rest as a monthly pension.

You cannot sell your pensions to anyone.

farquarpigmix

jem16 wrote: »

That is the state pension and nothing to do with private pensions which can be accessed from age 55.



Yes you can but it will be actuarially reduced by around 5%pa for each year you take it early. So by taking it from age 55 you will lose 25% of your pension.



Your Army pension is a final salary pension and should not be moved anywhere.

If the other pensions are money purchase schemes then you will be able to use the open market to search for the best annuity rate. You will be able to take 25% as a tax free lump sum and the rest as a monthly pension.

You cannot sell your pensions to anyone.

Ok Army pension left until 60. Have you a link for this "open market" to search?

The other 2 pensions are

1) Royal Mail. Left in 2004

2) Friends for life pension. Stopped paying into that in 2008

jem16

farquarpigmix wrote: »

Have you a link for this "open market" to search?

You would only get a rough idea - search for annuity quotes. An IFA will get the best deal for you so when the time comes you should use one.

The other 2 pensions are

1) Royal Mail. Left in 2004

Is this also final salary? It's likely to be and again best left until normal retirement date.

2) Friends for life pension. Stopped paying into that in 2008

Friends Life pension. What value?

farquarpigmix

Quote:
The other 2 pensions are

1) Royal Mail. Left in 2004
Is this also final salary? It's likely to be and again best left until normal retirement date.

Will need to check on that. Put it in a safe place.


Quote:
2) Friends for life pension. Stopped paying into that in 2008
Friends Life pension. What value?

About £10,000

I think I would need to read up on this also below?

http://www.moneysavingexpert.com/savings/annuity-guide

jem16

farquarpigmix wrote: »

About £10,000

I think I would need to read up on this also below?

http://www.moneysavingexpert.com/savings/annuity-guide

It would give you an idea. This table would also give you a very rough idea.

http://www.ft.com/personal-finance/annuity-table

Basically at age 55 with single life, no guarantee and not index-linked, you would only be looking at a rate of around 4.56%. Age 60 this is 5% and age 65 it's 5.8%.