What does the Chancellors pension revolution mean for us?

Francesca7777

Triumph13 wrote: »

I'm afraid I couldn't agree with you less on the above. Many, many new posters who come here with questions display a very high degree of financial illiteracy and are set on taking extremely unwise courses. The advice given to these individuals by people such as atush meets a very important need.

I'm sorry that it has upset you, and I can quite understand how it might in your situation, but even if atush and the the other helpful stalwarts on here upset ten people for every one they help avoid making a ruinous decision then I have them firmly on the side of the angels.

"Advice". You said it. If someone is asking for advice, then great! If someone is just asking for clarification on financial or pension law, how about just give them that? Furnish people with the facts, and then let them make their own decisions, instead of prising into their private lives and asking them what their plans are for the future. Unless you are requested to provide advice, leave people alone!

And you can understand how it might be "in my situation"? My situation has nothing to do with it! I'm less annoyed about my "situation" than I am by patronising financial advice that I haven't asked for. Now that IS annoying.

TBC15

Francesca7777 wrote: »

Stop worrying about people - it's just patronising. How do you know what someone has managed to save by the time they are 55? They may have loads of equity in a home, they may be self-employed and still earning quite comfortably, they may be quite financially secure and just want to release these "assets" to help their children... Or the may, for whatever reason, KNOW that they will not be around for more than another couple of years... Who knows? UNLESS someone is actually coming to you for financial advice, try and just stick to answering their questions factually.

It’s one of the features when you are fishing for knowledgeyou often get the full 9 yds of someone’s knowledge , occasionally their opinions and assumptions of possible scenarios.

Mostly this is all good information, some of it may not be100% pertinent to the original query, but there will be many others that read an exchange and go away with something they didn’t have before.

The written word is a wonderful thing but unfortunately it has its limitations.

Daniel54

deejaybee wrote: »

From previous employment I have a deferred final salary pension.

Normal retirement age for that scheme is 60.

I am 53 and a half now and was planning on taking it at 55, as I need the 25% lump sum to pay money owed to family.

2 questions:

1: Is it possible to take the lump sum, but leave the rest until age 60 - or is that dependant upon individual company scheme rules ?

2: Under George's new rules, could I take the whole pot at 55, obviously paying tax on amount left after 25% tax free taken ?

1) No -all the pension or none

2) No -existing rules might allow you to transfer the pension via na IFA into a cash alternative if you have a serious ,potentially life curtailing illness

Sorry -it is that simple

Francesca7777

TBC15 wrote: »

It’s one of the features when you are fishing for knowledgeyou often get the full 9 yds of someone’s knowledge , occasionally their opinions and assumptions...

Why? Why do I have to sit through 9 yards of patronising diatribe when I've only asked for 1 yard of information? And it DOESN'T enhance the writer's credibility to other viewers either, if anything it actually alienates them. Those with a brain, anyway. Only a complete IDIOT would not realise that cashing in one's pension early would mean that there would be less in the pot to survive on later, if in fact you needed it to survive on. Primary school maths! DOH! Really? So if I spend all my cash on the Jimmy Choo shoes I won't have enough left over to buy the D&G solid gold keyring? Thank you so much for saving me from my Neanderthal self...

Everyone loves being an 'expert' on these sites! I think I'll wait until the professional world catches up with all this reform and take advice then.

Proxy

Francesca7777 wrote: »

Everyone loves being an 'expert' on these sites! I think I'll wait until the professional world catches up with all this reform and take advice then.

Lots of people here are professionals in the subject matter. Just because they're on a forum doesn't mean they're not.

TBC15

Francesca7777 wrote: »

Why? Why do I have to sit through 9 yards of patronising diatribe when I've only asked for 1 yard of information? And it DOESN'T enhance the writer's credibility to other viewers either, if anything it actually alienates them. Those with a brain, anyway. Only a complete IDIOT would not realise that cashing in one's pension early would mean that there would be less in the pot to survive on later, if in fact you needed it to survive on. Primary school maths! DOH! Really? So if I spend all my cash on the Jimmy Choo shoes I won't have enough left over to buy the D&G solid gold keyring? Thank you so much for saving me from my Neanderthal self...

Everyone loves being an 'expert' on these sites! I think I'll wait until the professional world catches up with all this reform and take advice then.

I’ll get my coat.

Linton

Francesca7777 wrote: »

"Advice". You said it. If someone is asking for advice, then great! If someone is just asking for clarification on financial or pension law, how about just give them that? Furnish people with the facts, and then let them make their own decisions, instead of prising into their private lives and asking them what their plans are for the future. Unless you are requested to provide advice, leave people alone!

And you can understand how it might be "in my situation"? My situation has nothing to do with it! I'm less annoyed about my "situation" than I am by patronising financial advice that I haven't asked for. Now that IS annoying.

Sorry but this is an internet discussion forum open for anyone to take part. All we who try to answer questions can do is to discuss the situations based on the information provided. Hopefully in that discussion suggestions useful to the original poster, and equally importantly other people, will emerge. Many people who post here would be seriously ill-served if all they got was, for example, instructions on how to cash in their DB pension.

The best way to get factual information without other connected discussion is to pay a professional to tell you. It should at least be accurate which is not guaranteed on an internet forum and has the advantage that you can always sue them.

deejaybee

Quote:
Originally Posted by deejaybee
From previous employment I have a deferred final salary pension.

Normal retirement age for that scheme is 60.

I am 53 and a half now and was planning on taking it at 55, as I need the 25% lump sum to pay money owed to family.

2 questions:

1: Is it possible to take the lump sum, but leave the rest until age 60 - or is that dependant upon individual company scheme rules ?

2: Under George's new rules, could I take the whole pot at 55, obviously paying tax on amount left after 25% tax free taken ?
1) No -all the pension or none

2) No -existing rules might allow you to transfer the pension via na IFA into a cash alternative if you have a serious ,potentially life curtailing illness

Sorry -it is that simple

=================================

Thanks Daniel, appreciated.

Ok so at 55 I take the 25% TFLS, but the monthly pension payments I was planning on saving in ISA(s).

Could I instead start a personal pension/SIPP using the monthly payments ? Or is that not allowed ?

I will still be working ( S/E ) and I am aware that the monthly pension payments I receive will be subject to income tax.

BML

I am close to 80 years of age and took out an AVC 20 years ago before I really understood what they were. It was a waste of time because I was made redundant three years later at the age of 57 and the rules then meant that I could neither continue to put money into it, draw the money I had put into it out or do anything else with it.
I enjoyed refusing to cash it in and annoying the company the AVC is with but they milked it with their charges and commission.
If I am correct in believing that the budget has introduced the right to take that money out of the AVC then I will do so because my pensions are enough to live on.

Linton

deejaybee wrote: »

Quote:
Originally Posted by deejaybee
From previous employment I have a deferred final salary pension.

Normal retirement age for that scheme is 60.

I am 53 and a half now and was planning on taking it at 55, as I need the 25% lump sum to pay money owed to family.

2 questions:

1: Is it possible to take the lump sum, but leave the rest until age 60 - or is that dependant upon individual company scheme rules ?

2: Under George's new rules, could I take the whole pot at 55, obviously paying tax on amount left after 25% tax free taken ?
1) No -all the pension or none

2) No -existing rules might allow you to transfer the pension via na IFA into a cash alternative if you have a serious ,potentially life curtailing illness

Sorry -it is that simple

=================================

Thanks Daniel, appreciated.

Ok so at 55 I take the 25% TFLS, but the monthly pension payments I was planning on saving in ISA(s).

Could I instead start a personal pension/SIPP using the monthly payments ? Or is that not allowed ?

I will still be working ( S/E ) and I am aware that the monthly pension payments I receive will be subject to income tax.

Taking a DB pension early can be very expensive in reduced payments. Also you may find that taking the Lump Sum if its optional reduces further your payments to a greater extent than might seem fair. I think you should check the figures for your pension before doing anything irreversible.

Taking your pension at 55 may be one of the last options you should consider. Any chance of getting a reasonable interest loan instead?

You can use the pension payments to pay into a SIPP. More problematic is using the tax free lump sum. However do remember that income from the pension isnt "earned income". Getting the tax relief is dependent on your total pension payments relative to your earned income. I guess this wont be a problem for you but could be to others.