Early retirement - pension reduction

jamesd

55 is really much too young to be buying annuities. It's also somewhat contrary to your objective and long term benefit. that's better served by taking a 25% tax free lump sum from one pension pot and draining capital out of it as fast as required to delay starting the NHS pension. then repeating for the other, if more money is still needed.

You giving up a GAR would be great news for them. Those are really expensive for the pension providers who have products that include them.

wagnerite

Hi again all, and apologies for resurrecting this thread if that's not really the Done Thing around here.

First, thanks to all who helped me when I was here a month or so ago. You helped me ask the right questions of my pension company, and gave me some useful pointers.

Royal London still say that "we can't provide illustrations of projected benefits at an alternative maturity date" for my pensions, but when I spoke with them on the phone I clarified that if I access my pensions at 55 I will indeed lose any GAR and final bonus. I asked, "so we're really just looking at the transfer value?" "That's right," they said.

For the time being, that's where I left it. But it occurred to me to ask the gathered wisdom here, is that correct? Might there be hidden fees, etc, when it comes time to access the money? (Boo!) Or hidden bonuses? (Yay!)

Just to reiterate: the one non-negotiable thing in all this is retirement at 55. I really want to get on with all that unpaid work!

kidmugsy

wagnerite wrote: »

Might there be hidden fees, etc, when it comes time to access the money? (Boo!) Or hidden bonuses? (Yay!)
Just to reiterate: the one non-negotiable thing in all this is retirement at 55.

(i) There's no substitute for asking them.
(ii) Consider some tax-efficient saving into a modern personal pension of some kind over the next couple of years. See here.
https://forums.moneysavingexpert.com/discussion/5040574

Former_MSE_Wendy

wagnerite wrote: »

Hi again all, and apologies for resurrecting this thread if that's not really the Done Thing around here.

First, thanks to all who helped me when I was here a month or so ago. You helped me ask the right questions of my pension company, and gave me some useful pointers.

Royal London still say that "we can't provide illustrations of projected benefits at an alternative maturity date" for my pensions, but when I spoke with them on the phone I clarified that if I access my pensions at 55 I will indeed lose any GAR and final bonus. I asked, "so we're really just looking at the transfer value?" "That's right," they said.

For the time being, that's where I left it. But it occurred to me to ask the gathered wisdom here, is that correct? Might there be hidden fees, etc, when it comes time to access the money? (Boo!) Or hidden bonuses? (Yay!)

Just to reiterate: the one non-negotiable thing in all this is retirement at 55. I really want to get on with all that unpaid work!

Hi Wagnerite

Royal London got in touch with me after spotting your forum post and asked me to pass on the following message:

Sorry to hear your query is still unresolved. One of our customer relations specialists will be pleased to help you again if that would be useful. Nancy or Mona in the press office can help put you in touch with someone if you contact them www.royallondon.com/about/media/press/

Wendy

jamesd

Given the high GAR you should try not to take money from the Royal London pension pot. What I suggest you do is find out from them:

1. the range of ages when the GAR is available
2. the type of annuity that the GAR provides, whether that is level or has some inflation protection, and if so which inflation rate is used.
3. Also worth specifically asking if it's with profits that may have a bonus at the end or not.

The GAR is probably too valuable for it to be a good idea to take it early and lose the GAR.

Once we know more about that and your other assets and income needs we can come up with a plan that tries to get you the best deal for the combination of things that you have.