Pension due in june

atush

What is your health like? Any reason you think you will die young?

You wont lose just the 36%, but income tax too. that is an awful lot of money to waste.

The only way to do it is, if you put 100% of the amt of the pension income into your new DC pension. you've still taken the 88K but it would me made up to 110K in your new pot, of which you'd get 27.5K tax free?

joebob

I phoned pension company up to get a forecast at 60
free financial advice from unite union anyone used it.

atush

Most people here have reported Unions know little to nothing of any help. But you could be lucky.

Let us know?

dunstonh

free financial advice from unite union anyone used it.

Its not quite free. A consultation is free but that is all.

joebob

Got my pension forecast for age 60 early retirement
£37.000 lump sum £5.5000 pa
If this increases 3.3% on average every year this would total £43.000 plus £37.000 at 66
OR
£37.000 lump sum £9.800 pa untill 66 then drops to £3.800 pa
If this increases 3.3% on average every year this would total £76.000 plus £37.000 at 66

aged 55
lump sum £28.000 £4.200 pa if this increases 3.3% on average every year total £59.000 plus £28.000 at 66
OR
lump sum £28.000 £6.800 pa untill 66 then drops to £2.100 pa
if this increased 3.3% on average every year this would total £98.000 plus £28.000
all these are before tax

xylophone

When do you intend to give up work completely?

Does your wife have a pension of her own in addition to a state pension?

https://www.gov.uk/state-pension-statement

You are mortgage free now?

You might consider the lump sum taken at 55 as your treat money and use the pension income to enable you to increase contributions to your DC Scheme with DHL or to a pension for your wife?

Or you might wish to make regular gifts out of income to your daughter?

kidmugsy

atush wrote: »

First off, you lose 36% of your pension (and presumably LS). .

Over the last couple of years it's been noticeable that people posting on this forum typically lose a far smaller proportion of their lump sum by retiring early, than of their pension. So much so that the early lump sum is often worth more than the NRA lump sum, assuming that they can save it in, say, high interest current accounts. Still, in terms of value it's the pension that dominates.

atush

I would certainly not take this pension early/taxed unless 100% of the income was reinvested in pensions. For himself, his wife or both. I would also not take the higher then 2100 pension.

He doesn't need the income or LS, just wants his hands on it.

joebob

xylophone wrote: »

When do you intend to give up work completely?

Does your wife have a pension of her own in addition to a state pension?

https://www.gov.uk/state-pension-statement

You are mortgage free now?

You might consider the lump sum taken at 55 as your treat money and use the pension income to enable you to increase contributions to your DC Scheme with DHL or to a pension for your wife?

Or you might wish to make regular gifts out of income to your daughter?

I intend to drop to 4 days next year 3 days year after and finish work at 60.
yes wife is drawing nhs pension
mortgage free sort of we took a loan out for daughter which she repays us every month.
Is there a limit to how much i could pay into dhl scheme,

atush

your limit is your income, or 40K. Whichever is lower. this would include TR and any employers contribs.