Should I defer pension until 2015 ?

kidmugsy

Savvy_amateur wrote: »

Thanks. I would take my state pension and defer my private one I think. I plan to continue working for another year anyway, so maybe thats the way to go.

Nooooooo! Deferring of the State Retirement Pension on the present terms is an astonishing bargain. Buy it!

(That's why the reward will be halved for the new-style SRP.)

Update: especially as your young wife will 'inherit' about 90% of the Extra Pension when you've shuffled off.

Update 2: your homework for tonight.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210220/DWP024.pdf

Savvy_amateur

Thanks to everyone for your realy useful replies. I would just like your opinion on one last issue. Sandsy has got me thinking that my IFA did not have me sign a contract stating I would pay the 1K fee for the annuity work if I did not purchase a product. Obviously I had every intention of purchasing and going ahead with her recommendation. But in light of the budget will almost certainly defer my pension for a year, so will not purchase an annuity. I feel sorry that she has done all this work and potentially wont be paid. But then this situation could not have been foreseen. I am considering offering her a reduced fee to cover some of her time. What do you think ? Is there anything I should take into account ?

kidmugsy

I suppose that the wrangling over terms with suppliers now becomes redundant. How about the fact-find and the assessment of your risk appetite? Do you feel it would be reasonable to pay for the time and expertise devoted to that? Would you pay now or when your decisions are finally made in 2015?

Afterthought: is it clear what will happen under the new rules to an income withdrawal already set up? In other words, is there a case for taking capped drawdown for a year and then using the new freedom later?

Savvy_amateur

kidmugsy wrote: »

I suppose that the wrangling over terms with suppliers now becomes redundant. How about the fact-find and the assessment of your risk appetite? Do you feel it would be reasonable to pay for the time and expertise devoted to that? Would you pay now or when your decisions are finally made in 2015?


Afterthought: is it clear what will happen under the new rules to an income withdrawal already set up? In other words, is there a case for taking capped drawdown for a year and then using the new freedom later?

My initial thought was to pay now as I could not see any reason for needing ner services again.
I may not fully understand, but assumed the IFA cost of setting up a drawdown now ( £2.5k she quoted) was wasted money as the new rules in 2015 would be a similar scheme, but without a IFA fee involved.

Savvy_amateur

What percentage of her £1k fee would you suggest is fair ?

kidmugsy

This is where you could use some steering from Dunstonh.

Savvy_amateur

kidmugsy wrote: »

This is where you could use some steering from Dunstonh.

Hope he is looking in.

Savvy_amateur

Hope he is looking in .

atush

i thoght the fee was high whne you first mentuionned it (ie 2.5K) D didnet agree.'

I am not sure what/if you are doing anything, or anything she suggested, and any fees you agreed to pay or not for what she has done. which w/o knowing all, i dont think she as earned due to a few things she suggested

Ie she said your pot wasn't big enough for DD (but knowing you didn't really want to DD over a long term but give this to children)annuity but you want your pot inherited by children (so annuity isn 't correct for this in the main).

Savvy_amateur

Thanks atush.
I did test as risk averse and as stated before, as far as risking my money in high risk accounts, then I supose I am. If however the questionaire had included a question about how averse I was to having full control over my pension pot, that would be a different story. It is more or less surplus to requirements, but I was still not prepared to risk losing too much of it through market fluctuations. I want to enjoy it or leave any left when I am gone to my family. But to be fair, that question wasn't asked, so inheritance was not discussed. I assumed an annuity was the only way to go as I didnt want to risk getting even less of my pot paid out by taking a gamble. I asked her to look for an annuity, told her what to include and she agreed. She briefly touched on other options (not DD) but said they were higher risk, so I rejected them. I wanted to guarantee as much of my hard earned cash back as possible. Now this is a real possibility since the budget, but makes the annuities she has searched for redundant.