Basic Pension Info

xylophone

pound cost ravaging

The deleterious effects of inflation?:D

TH1878

xylophone wrote: »

The deleterious effects of inflation?:D

That and people drawing money out when markets / fund values are down meaning your money has to work harder to get back to square one - always advisable to have a cash buffer to counter this.

Investment growth isn't linear but most people's calculations assume it is - not so bad in the accumulation phase but a dangerous assumption in the withdrawal phase.

xylophone

With regard to transferring the pension, I hope that the IFA will cover the longevity question - someone known to me has been drawing his FSP for over thirty four years...

mikewp

Yes of course this does happen but I worked with a guy who retired on a Final Salary Pension and within a year he deceased leaving his widow on a paltry widow pension and the lions share of the pot gone.

jem16

mikewp wrote: »

Yes of course this does happen but I worked with a guy who retired on a Final Salary Pension and within a year he deceased leaving his widow on a paltry widow pension and the lions share of the pot gone.

There was no pot - only a defined set of benefits.

What happens if you don't die?

mikewp

Thanks for your help, your effortwas much appreciated albeit not very helpful, are you always that polite ????

kangoora

Pension fund companies are going to throwing big parties if the amount of people on here planning to pull out of FS pensions is any indication.

jamesd

There are a lot of people who still have final salary pensions and current gilt and bond yields can make transfers out very attractive, notably for those with reduced life expectancy.

atush

mikewp wrote: »

Yes of course this does happen but I worked with a guy who retired on a Final Salary Pension and within a year he deceased leaving his widow on a paltry widow pension and the lions share of the pot gone.

Yeah and my BIL got cancer within 6 weeks of leaving with his FS pension? Only lived a year or so after.

but my MIL lived to 95, and her husband late 80s.

Dont make decisions about YOUR life based on other peoples?

You never answered questions such as, do you have a spouse/partner. Children under 23. Any health issues?

jem16

mikewp wrote: »

Thanks for your help, your effortwas much appreciated albeit not very helpful, are you always that polite ????

I'm sorry if you found my post unhelpful but it certainly was not impolite.

I asked various questions on my previous post which you have not answered. Perhaps if you would answer those questions you may get more helpful responses as it might help us understand why you seem to be intent on making a very foolish decision.