New pensions freedom under attack before they start

scoobydoo66

Torry_Quine wrote: »

Pleased that it's not health reasons preventing you from working.

When you decided no longer to work (which in itself at 50 seems a strange thing to do to me) you knew that accessing your pension wasn't available for some time and that legislation could change. You have hopefully many good years ahead of you when your pension funds will be needed.

You appear obsessed with working, I find that most odd.
My pension has always been accessible, I have delayed it by choice.

Torry_Quine

scoobydoo66 wrote: »

You appear obsessed with working, I find that most odd.
My pension has always been accessible, I have delayed it by choice.

I find it odd that someone would stop working voluntarily at the age of 50

TCA

Torry_Quine wrote: »

I find it odd that someone would stop working voluntarily at the age of 50

Possibly the oddest statement I've ever seen on this board. You're obviously someone that "lives to work", while the vast majority "work to live".

jamesd

Torry_Quine wrote: »

If someone wants the advantages of putting money into a pension scheme then it makes sense that you cannot access it until what is considered a more standard age than the very early ages suggested by many here. ... I see no reason other than health why someone should be able to access a pension within 5 years of the state pension age without penalty.

The reason is easy: they decided to retire, have the means to do it and are using pension money for what it's intended for, income in retirement.

Say me, when I've been investing more than 60% of my income for the last ten years to let me do it.

Orwell wrote: »

Why not just go back to having a minimum secure income (e.g. £15,000) to allow flexible drawdown?

Because:

1. that's substantially more than I and many others need to live on

2. that's code words for "force people to buy an annuity" when buying annuities before age 80 or so delivers very poor value form money compared to the alternatives like drawdown. Forcing those who are retiring to throw away money on poor value products isn't good policy.

3. the income need of a person retiring before state pension age is not the same as the income provided by lifetime annuities, which pay the same for life. The real need is:
a. the same income as the state pension from retirement until state pension age, then nothing more from this part.
b. a boost income from retirement to estimated loss of ability to spend heavily, due to health or desire, say age 80.
c. the long term sustained top up to the state pension for life, however long it is.
Only the third of those is an appropriate use of a lifetime annuity but even then the age is too young for the purchase to be a good deal.

Bootsox

Torry_Quine wrote: »

Arbitrary it may be but it's the age that is considered the normal one to retire at unless health means you have to stop working earlier.

There nothing "physiologically normal" about the retirement age, it has been arbitrarily set by politicians.

Do you always do what you are told to without question?

brewerdave

As someone who was made redundant for the 3rd time at 58, it would have been disastrous for us financially, if we hadn't been able to access my DB scheme early. I spent over 9 months looking for a job, the only income being the JSA (about £54 pw then) and savings. No pension probably would have meant a significant downsizing, even a return to rented housing.:eek:
I suggest some of the cavalier "work til state pension age" types need to look at the real world -jobs for people in their late 50s/early 60s are still extremely difficult to get and are often part time/minimum wage jobs resulting in the need to claim benefits to top up income.How does that help the country ??
Good luck to those who still have a job in their 60s which they can manage physically and mentally -suspect thats a minority tho' !!

gadgetmind

Torry_Quine wrote: »

I find it odd that someone would stop working voluntarily at the age of 50

I find it odd that anyone would eat any flavour of ice cream other than vanilla, but I wouldn't back legislation to ban strawberry and chocolate because I realise that everyone is different.

Please at least try try to understand this.

kangoora

I find it odd that anyone would want to work past the point where they become financially independent and no longer are required to work to pay the bills - whatever age that happens to be. Early retirement frees up a job in the labour market for someone who needs that job.

If I'm restricted from taking my pension until I'm 62 I'd be in the ludicrous situation of having to blow money just to waste it, give it away to my sons or something similar or my pension in late retirement would be far in excess of my forecasted needs.

PS We still intend to leave the kids a decent amount of inheritance, just not over IHT threshold if we can avoid it

atush

Torry_Quine wrote: »

I find it odd that someone would stop working voluntarily at the age of 50

I find it odd that despite no one else sharing your opinion you haven't come to the conclusion yours just might be flawed in some way?

Occam's razor

rpc

Torry_Quine wrote: »

When you decided no longer to work (which in itself at 50 seems a strange thing to do to me) you knew that accessing your pension wasn't available for some time and that legislation could change. You have hopefully many good years ahead of you when your pension funds will be needed.

So, to parallel another thread, you believe that front line firefighters, police and the armed forces should continue to work until state pension age?

You don't need to be rich to retire early. You need enough wealth to sustain your lifestyle. For some people, that is relatively little and they would rather live frugally but without the need to work than to have to work just to pay for luxuries.

My dad was diagnosed with cancer two years ago. It will eventually kill him unless he gets "hit by a bus." Both he and my mum have chosen to retire 'early' [1] so that they can enjoy retirement together (and their grandchildren) before he becomes too sick. But you would deny them that because they are both fit to work? I'm afraid an honest expression of my views would probably get me PPR'd.


[1] My mum is actually over SPA but hasn't yet reached NRA for her pension so has taken an actuarial reduction. My dad is not yet at SPA or NRA but his pension is big enough for them to afford to do it.