Pension question

atush

If you don't actually NEED the money, don't take it early as it will be significantly reduced for your entire life.

If is a 5% reduction per year, the pension is reduced 25% for 5 years, 50% for ten years. A very bad deal unless you are likely to die young and have no spouse.

PeacefulWaters

It is likely to be a very expensive way to access money that was intended to support you when you have stopped working.

As you haven't stopped working you really need to establish why your existing income isn't supporting your lifestyle and look to address those reasons without shafting your retirement income.

Wilkins

mwilson12 wrote: »

Hi
I have an deferred Akzo Nobel final salary pension with approx. 50k in the pot... I am 55 in jan 2016 and have been offered 25 per cent lump sum but I would like the whole amount how do I go about releasing it... I intend to work until my state pension age which is 66... any advice is appreciated...

It's not at all likely you can get at the transfer value, the notional 'pot'. Also, as the others have said, you might be well advised not to take the pension early. Since it is deferred, it will likely be uprated with inflation as well as ceasing to have actuarial reduction. You could be talking about £3-4k p.a. in today's terms.

Against that, however, you will have the money in hand, an extra £22k minus the difference in lump sums. That is obviously a personal decision. If you intend to die early, it might be a bargain.

atush

If you can't live on what you earn now, how will you ever actually afford to retire? Esp if you reduce your pension by taking it early?