Final Salary AND DC pension query

RoyalEnfield250

There appear to be conflicting messages in the press about the latest budget changes and the eligibility of FS/DB members to use the new pension rules for DC pots from 2015.
I will be retiring in Jan 2015 with 20 years pension service in an 80'ths scheme, but I had, before joining this company, paid into a DC scheme, and contracted out of SERPS, so, at the last valuation I had a combined pot of about £70K in these 2 DC schemes. Will I be allowed the same access to the DC pot as others who do not have a FS/DB pension? I do not want to buy a Lambourghini, merely to access the money and pull an amount down annually to supplement my FS pension and state pension, without paying too much tax, but, crucially, I want to leave any money left over to my wife and then on to my children on her demise. (I am assuming I will pre-decease her!). The press keep stating that FS/DB people won't get this access, but I appreciate it is early days yet for the industry to fully understand all the rules and implications.

Linton

The rules apply to pension schemes rather than people. So if you have a DC pension the DC pension rules define what you can do with that pension. And the DB rules define what you can do with your DB pensions.

RoyalEnfield250

I hope that is correct as it would allow me to do exactly what I want.
Thanks for replying.

kidmugsy

The election is a year away. The chances of someone in office seeking to annoy people who happen to hold both DC and DB is nil. Moreover, what you want to do is entirely in the spirit of the reforms anyway. Enjoy it because it is uncommon, but the Chancellor of the Exchequer is on your side in this affair.

By the way, consider whether you'd like to defer your State Retirement Pension for a couple of years and take your reward as a bigger pension. It's an excellent deal (for you; not for the taxpayer) as long as you are going to get an old style SRP. It's not so good for the new style.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210220/DWP024.pdf

P.S. I had an eye on a Royal Enfield when I was young. Are they still made?

greenglide

kidmugsy wrote: »

S. I had an eye on a Royal Enfield when I was young. Are they still made?

Still made in India!

UK company long gone:-(

Triumph13

kidmugsy wrote: »

By the way, consider whether you'd like to defer your State Retirement Pension for a couple of years and take your reward as a bigger pension. It's an excellent deal (for you; not for the taxpayer) as long as you are going to get an old style SRP. It's not so good for the new style.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210220/DWP024.pdf

Also, are you retiring at your normal pension age for the scheme or going early with an actuarial reduction? If the latter it could be worth living off the DC pot for a while to delay taking your DB pension and avoid / reduce any reduction.