L&G Buy Out Pension - Ditch/Switch/Drawdown?

saintalan

so, you get 29% TFLS instead of 25%. Good enough to stay put for an extra 4% TF?

I don't know till I have all the info and done my sums. Would the extra TFLS apply in a DD situation and/or a Transfer?

You say you have a young family, then mention annuities.

I only mention it as I want to consider all options, my feeling is as per your comments i.e. I don't want to.

Third, should you leave it (to eventually get the 29% TFLS when you need the money) then look to moving it to a better performing funds as 2.5% is poor performance for 75% equities.

It was the poor performance over the last years increase that started me thinking. I think the least I want to do is change funds which talkes me back to my OP.

Many Thanks

Alan

atush

No, you would lose it during any transfer.

If you went DD with this pension in place, you get 71% into DD and 29% as a LS.

As for a fund switch, you need to investigate the other funds offered under the plan and choose some.

GhIFA

atush wrote: »

Buying even a 50% spousal pension via an annuity can cut your yearly payment in half.

Whilst most of what you say is sensible, I don't think I have ever seen an annuity quote that cuts the income in half purely for adding a 50% spouse's income - even with a significantly younger partner you wouldn't be looking at a reduction of this amount.

atush

With indexation?

GhIFA

atush wrote: »

With indexation?

With indexation yes, but it's the indexation that's costing there, not the spouse's pension.

xylophone

Are you still employed? Are you still paying into a pension?

How long to state pension age? If still working, when do you think you will retire?

saintalan

xylophone wrote: »

Are you still employed? Are you still paying into a pension?

How long to state pension age? If still working, when do you think you will retire?

Hi, no took SP, LGPS & DBP 2 years ago at 65.

Only other income from a rental property, no mortgage and OH is 53 in FT employment and plans to retire at 60 with 30 years service in an FSP.

I have grandchildren from grown up kids and also have an 8 year old daughter:)

My health and wifes is normal, so with current position cant foresee that I would need to take the Annuity in question, hence my OP re longer term investment for my family.

I am not uber wealthy and able to help my kids with their problems when I can and have a comfortable living. I hate writing all that as I see so many struggling but I guess all wealth is relative and relative to my OP.

Many thanks

Alan

xylophone

have an 8 year old daughter

Keeping you young?:D



I am wondering whether it might be worth considering transferring to a SIPP, taking the TFLS and using flexible drawdown to enable you to make gifts?

saintalan

xylophone wrote: »

Keeping you young?:D

...
I am wondering whether it might be worth considering transferring to a SIPP, taking the TFLS and using flexible drawdown to enable you to make gifts?

Yes it is quite a shock to the system:)

Don't know much about SIPP or whether I could use it? I had thought about the FD and find that route appealing but obviously want to make sure I review all my options.

Cheers,

Alan

xylophone

http://www.hl.co.uk/pensions/sipp/tax-benefits-of-a-sipp
http://www.hl.co.uk/pensions/income-drawdown/what-is-flexible-drawdown
Might be worth a browse.
http://www.thepensionadviser.co.uk/articles/36/flexible-drawdown/ for information.