Another Pension Query

HunkyDory

I am 55 and now have the option to take my pension early, I have obtained the quotes and would receive a lump sum of £45k and a pension of £7k. We have no mortgage , well from next month,and savings of £100k. If I stay in the current pension scheme this could effect any future redundancy payments (from 6 months if stay to possible 2yrs if I leave the scheme, appx 30k difference ) Whilst no one can see into the future the Company has just offered some Redundancies and it is not unreasonable to expect that in 12-24months more will come along, given the recent change of ownership of the Company.
Do I bite the bullet and take the Pension? It is more than likely I would want to retire at 60 and look for a part time job to supplement any income

greenglide

Is it a final salary / DB scheme?

If so then it would depend what the normal retirement age for the scheme and the cost, in terms of pension / lump sum reduction to fund the early reirement.

I would have thought that if you are going to continue for the same employer and you can contributing to the pension scheme you should do so?

atush

I would wait and take a voluntary redundancy later if offered, as retiring at 55 from a DB scheme would mean a reduction of 25-50% or even more.

And any pension you took would be taxed, as you will still work. Better to get a higher payment, untaxed (as will be within your personal allowance) at 60 or later?

With a voluntary redundancy you would be offered preferential terms

kidmugsy

With your magnificent savings stash, you can well afford to delay a decision the draw the pension, for the reasons atush and greenglide have given.

HunkyDory

What concerns me if I dnt take the pension early any EVR is only payable on 6months salary , if I opt out the pension fund and take early pension the EVR payment would be 2years salary, a diff of 34k. I would anticipate that another set of EVR will be offered within the next 18 months, of course this assumes that I would be granted EVR. This if it happened surely would compensate for the reduced pension etc.
Maybe Its me but why would I not take the pension now is it not better to have a bird in the hand ?

kidmugsy

HunkyDory wrote: »

What concerns me if I dnt take the pension early any EVR is only payable on 6months salary , if I opt out the pension fund and take early pension the EVR payment would be 2years salary, a diff of 34k.

Ah, is that what your obscure comments in the original post meant? If I were you, I'd check your understanding of this very carefully. Get it in writing, if possible.

HunkyDory

I would only get 6months EVR payment ,as I am over 55 ,if I stopped in the scheme, those who opted out and are over 55 in the current EVR offer are receiving 2 yrs payment.