Realisation.

geelamch

Why does everyone want their pension now!
It was quite logically explained to me that it was not for now ,but for later.
Fed up seeing posts ie; can I cash in now ( no ) you were told its a pension !

somethingcorporate

Evidently the sticky at the top of the first page is not effective as it would answer all the questions on this topic that get asked.

paul2468

geelamch wrote: »

Why does everyone want their pension now!
It was quite logically explained to me that it was not for now ,but for later.
Fed up seeing posts ie; can I cash in now ( no ) you were told its a pension !

I am 56, and have a small pension pot of just over £10,000, got a letter last week saying in todays terms i will get £600.00 per year from it when i retire.....I would much rather have the lump sum now.

geelamch

paul2468 wrote: »

I am 56, and have a small pension pot of just over £10,000, got a letter last week saying in todays terms i will get £600.00 per year from it when i retire.....I would much rather have the lump sum now.

I understand what you are saying ,however the point was always made to me that this was not my money so to speak but a venture between me ,employers to fund me when working life ends. I appreciate that it's only£600 but if you have a few of these with different employers the n it can mount up

edinburgher

Why does it bother you?

atush

it bothers me because it illustrates how ill informed (call it stupid/ignorant if you like- i am not) people are about pensions.

and also shows that many will withdraw all they can next april, good idea or not.


Anyway, they have had enough time to do what they want with the forum (why they took the stick off) but many who want to cash in their pensions weren't smart enough anyway.

Sticky back now would help

PeacefulWaters

paul2468 wrote: »

I am 56, and have a small pension pot of just over £10,000, got a letter last week saying in todays terms i will get £600.00 per year from it when i retire.....I would much rather have the lump sum now.

Next April and you can.

littletimeleft

geelamch wrote: »

Why does everyone want their pension now!
It was quite logically explained to me that it was not for now ,but for later.
Fed up seeing posts ie; can I cash in now ( no ) you were told its a pension !

Here's one reason.
My 58 year old wife has had her pension statement from a previous employer which quotes 2 things - the value of the fund and the annuity it could provide at the fund retirement age of 60 next March.

It will take 32 years for the annuity to pay out the value of the fund as at today.
She is expected to live for no more than 5 years (health reasons).

Why should the annuity provider benefit from her money ?
Even if she survived for 32 years (to age 90) the money she would have had back would only equate to the value of the fund now - and they would have benefited from the 'interest' on the money for the 32 years.
If she took the fund now and invested it herself then drew the annual equivalent of the annuity, at the end of 32 years there would still be money left in the 'pot'.

However she won't do that, she'll use the fund to enjoy the next 5 years.
Should she live longer - then we'll worry about that then.

Good enough reason??

Others will have their own reasons as I'm sure you have yours for being 'fed up' with their attitude.

If only life were perfect.

atush

Have you not heard of enhanced annuities?

They pay out far more for your wife than regular ones (which you were quoting). Might be worth considering your position and her actual LE.

Anyway, most who want the money aren't in your position so accessing it could be a bad idea depending on t he reason.

geelamch

It is a pension not a cash pot, my wife and myself have been through the hard times most probaly like yourself ,however we know that a pension is as it says on the label,my employer contributes so it ain't all my money.
I take a great interest in my pension but it doesn't come in to today's finance,,, money for the future ,,hopefully

PeacefulWaters

littletimeleft wrote: »

Here's one reason.
My 58 year old wife has had her pension statement from a previous employer which quotes 2 things - the value of the fund and the annuity it could provide at the fund retirement age of 60 next March.

It will take 32 years for the annuity to pay out the value of the fund as at today.
She is expected to live for no more than 5 years (health reasons).

Why should the annuity provider benefit from her money ?
Even if she survived for 32 years (to age 90) the money she would have had back would only equate to the value of the fund now - and they would have benefited from the 'interest' on the money for the 32 years.
If she took the fund now and invested it herself then drew the annual equivalent of the annuity, at the end of 32 years there would still be money left in the 'pot'.

However she won't do that, she'll use the fund to enjoy the next 5 years.
Should she live longer - then we'll worry about that then.

Good enough reason??

Others will have their own reasons as I'm sure you have yours for being 'fed up' with their attitude.

If only life were perfect.

You highlight a very relevant and personal exception to the point that I think was being made. And I hope you are both able to get the best possible value emotionally out of that fund.

I do, however, find it frustrating when those in good health who are several years short of retirement age post about their need to free up their pension pots now with absolutely no idea around how to replace the fund and, in most cases, no intention of replacing it.