What does the Chancellors pension revolution mean for us?

lvader

ginny1011 wrote: »

Hi I have schizophrenia and was medically retired two years ago I am 44 I receive a annuity of £361 once a year can anyone please tell me if I can take a lump sum out My pension is worth about £10000

Not if you have already bought an annuity.

mania112

ginny1011 wrote: »

Hi I have schizophrenia and was medically retired two years ago I am 44 I receive a annuity of £361 once a year can anyone please tell me if I can take a lump sum out My pension is worth about £10000

No, you have bought an annuity. Unfortunately it has no cash value, it's worth £361 a year now, not £10k altogether.

Thrugelmir

kittie wrote: »

capital is lost when the annuity recipient dies. There are 44 ftse 100 shares this evening with a rolling yield of over 3%, the top ones having a yield of over 6%, yes there is risk of course but drip feeding into a variety of solid ftse 100 companies could well be the answer for some people. I did something similar in my husband`s sipp and capital value has risen a lot, the dividends alone are providing a very good yearly income

I merely raise the point. As it's not as clear cut as it appears. I'm not pro annuity per se. Just like people who compare BTL to cash deposit accounts. There's no account of risk. Solid companies like Maxwell Publishing, Polly Peck, World Com, Enron, Northern Rock do you mean? High yields reflect poor growth prospects. As I'm typing I'm looking at my SIPP holdings. Centrica, HSBC, Standard Chartered, Tesco are all well down over the past 52 weeks. My best performers are AIM shares. Not for the faint hearted and these I monitor daily. As prices fluctuate widely on low trading volumes.

kidmugsy

Thrugelmir wrote: »

these I monitor daily.

Is that wise? Won't you just fret? We have a "fund" of gold mining shares and look up its value every six months; I wonder whether that's too often.


Come to think of it, it's in a stranded pot susceptible to the new rules. Maybe I had better check it this weekend.

mark55man

kittie wrote: »

stop worrying about other people, you are definitely being patronising and you need to butt out of their business

Naughty atush,

fancy being so stupid as to provide an answer to a question asked on a public forum when it was clear that the poster didn't want anybody butting into their business

you would have thought someone posting so many and so helpful responses as yourself would have known better than to expect anything other than wilful disregard and scorn

I suggest you go back to your carefully managed finances and enjoy your sangria (that's a red wine based drink don't you know) and leave us ignoramuses to our pots of goblin gold

Francesca7777

I love all this feigned 'empathy' masquerading as 'advice'!! What is really meant is there is concern that if people cash their pensions in early that they may end up being benefits drains! Fair enough... but let's call a spade a spade perhaps, and stop trying to disguise those sorts of intolerant assumptions as 'empathy'? So 'you', Atush, 'have empathy, but I don't'?! Really??? Have you been handed the Nobel Peace Prize yet I wonder??? Or are saints excluded from this award because they shouldn't be shown biassed favouritism?

Nothing is wrong with giving advice, when it is ASKED for. It's just rude to ask people questions about their personal circumstances, or even worse, make 'assumptions' about their personal circumstances. You think you're doing something really benevolent and caring here... Had I logged on and just observed many of the responses here I would have just thought to myself, "What a bunch of arrogant self-important bozo's!" The 'advice' here, as unsolicited as it may be, is free!!! I guess you get what you pay for.

le_loup

Are you here just for a fight, or are you always like this?
I ask, merely for information.

Gorgeous_George

The change is quite interesting. Like the rest of the budget, it benefits the rich who will have the larger pension pots.


However, compulsory annuities were one of the reasons that I would never save in a pension fund. The other is that any tax benefits are more than wiped out by the fees.


At least with the capital one would be able to buy a house or houses to let out (possibly to family members). This could turn £100K into an income of £600 per month that would rise by inflation and the capital is as safe as houses. Annuities couldn't match that.


GG

lvader

Gorgeous_George wrote: »

The change is quite interesting. Like the rest of the budget, it benefits the rich who will have the larger pension pots.

It benefits those with smaller pension pots more, richer people could already do flexible drawdown before the changes.

kidmugsy

lvader wrote: »

It benefits those with smaller pension pots more, richer people could already do flexible drawdown before the changes.

You can't seriously suppose that his festering resentment will be cured by something so vulgar as evidence, can you?