old salary pension

thecrem

hi, I am 56 years of age and have an old pension with a company i worked for before, its a salary based pension and have asked them for a transfer value.......I need to draw it out and have registered with a company called AgePartnership...asking them for quote for anuity.
is this the best method to get my cash lump sum and then rest at retirement age...?? I dont have any other options left but to do release my pension here.......so what are my best options to get my cash lump sum upfront.......and is this company i am registered with reliable......or could you recommend one to me please.........
rgds K.R

kidmugsy

thecrem wrote: »

hi, I am 56 years of age and have an old pension with a company i worked for before, its a salary based pension and have asked them for a transfer value.......I need to draw it out and have registered with a company called AgePartnership...asking them for quote for anuity.
is this the best method to get my cash lump sum and then rest at retirement age...??

Before you do anything else, I suggest that you ask the pension scheme if you can draw the pension at 56, and if so what is the "actuarial reduction" for doing so. Ask them also to quote the lump sum you can expect, and the monthly pension. It might be that this is much better value than transferring.


I don't see the point of asking AgePartnership to quote for an annuity now if you want just the lump sum now and "then rest at retirement age".

jamesd

It appears that you are about to make a very big mistake. You should not transfer money out of a salary-linked workplace pension unless you know from a medical diagnosis that you are likely to die soon. So far you've written nothing that could possibly justify such a transfer as being a good choice.

Taking a lump sum from a defined benefit pension then buying an annuity is a spectacularly bad thing to do because the defined benefit pension is sure to pay out a lot more than an open market annuity does. Income drawdown should be a better choice than annuity purchase at your age but even that is pretty usually dire when you're starting with a defined benefit pension instead.

What problem are you trying to solve that makes something so bad look OK to you?

For the most likely sort of problems where it might appear to be a good idea, the method that kidmugsy has described would be a better choice.

xylophone

A deferred final salary pension?

Any receiving scheme is likely to insist that you take advice from an Independent Financial Adviser with the necessary qualification.

Example https://forums.moneysavingexpert.com/discussion/comment/65873118#Comment_65873118 post 25

atush

Why do you need the pension now?

Are you unemployed? Go sign on? Look for another job?

You should not take this pension the way you are thinking of, unless you follow the advice in post 2

thecrem

hi.
i am working, but am in debt and have a bad credit record, all my doing of course....but due to this i cant get credit anywhere and am struggling to pay off debts,,am also applying for debt manage plan via Stepchange.....

i have asked pension advice line, everyone keeps letting me know its not a good idea and seek advice,,,,which i am trying to do but keep getting information, which i find difficult to understand.....

i have not made up my final decision yet....company pension is with now stated before when asked, i can withdraw it in 4 years..if i wanted to......4 years is still too long to wait....
however i have asked them today as adviced here if they can release a lump sum and a monthly figure...rather then transfer...will see their response......they do seem relectant in replying and said it would take up to 3 months.....
rgds

atush

Ok, what you really need is, to look at some other options.

I asked about debt because, right now your pension is safe. If you bring it out of where it is, it wont be safe.

Go the Debt Free board here for help. Call the consumer debt councilling service and other charitable organisations that can help you manage and structure your debt. Help you reduce it faster, w/o making yourself poor in retirement (or unable to retire).

And also be aware, that taking a lump sum (unless it is an automatic LS) from a final salary pension is also unwise as it is expensive and not the best use of the pension.

Good luck waiting to see what they say. In the mean time, you have 3 months you can be getting on with reducing your debt by other means so get onto the debt free forum.

[Deleted User]

Maybe the users here can help you from a different angle, what about if you provide your debt and salary information and then we can help work out a viable solution that will help you avoid plundering your retirement. There is almost always an option, it might not be pretty but it's very unlikely that the best thing for you to do is make long term sacrifices just to get you through a short term problem.

How bad is your debt? If you can share the figures that'd be a good place to start It might even be the case that bankruptcy is your best option! Nobody knows without the information.

atush

Exactly, but the debt free forum is good at that too?

jamesd

thecrem wrote: »

i am working, but am in debt and have a bad credit record, all my doing of course....but due to this i cant get credit anywhere and am struggling to pay off debts,,am also applying for debt manage plan via Stepchange.....

i have asked pension advice line, everyone keeps letting me know its not a good idea and seek advice

Good that you are planning to work with Stepchange. Please also have a read of the Bankruptcy and living with it message board here and post more details about your situation there. The people who post there will let you know whether they thing that bankruptcy is a reasonable way to go and support you through it if it does seem to be.

Bankruptcy today usually means restrictions for one year then very limited ability to get credit for the following six years. Still a need to declare having been bankrupt for major things like getting a mortgage but those are available.

thecrem

thank you all, i will wait and see what pension holder says....but start and continue with STEPCHANGE, I DONT HAVE MORTGAGE,LIVE WITH PARENTS ,WORSE CASE IN RETIREMENT WOULD BE SURVIVING ON STATE PENSION ONLY....
RGDS