Baffled

tkeenan31

My husband, who will be 60 in September, has received notice from Equitable Life that his "with -profits" pension is valued at £8,352.40. His option are: (1)Take savings as cash. (2)Transfer the savings to another company. (3)Use the savings to but an annuity on the open market. (4)Keep the savings where they are. Any advice please?

dunstonh

Any advice please?

Which best suits his needs?

atush

Does he have any other pensions? will he still be working?

tkeenan31

Yes, he intends to work until he is 67. He is unsure of what would be the best option for him. Thank you.

tkeenan31

He is unsure of the best option and plans to continue to work until he is 67. We're not sure of how the options would affect any state pension or if there is any relatively safe way to grow his pension slightly. Or is there any point in trying to grow it? If he takes some out now will it affect his state pension? We just don't know enough about this and as he works weekends it's difficult to consult a financial adviser or citizens advice and as it's not my pension I wouldn't be able to get advice on his behalf. Thank you.

brewerdave

1. If he takes it as cash then he will be taxed on 75% of the sum at his marginal rate of tax;ie if he is a basic rate tax payer he would get ~ £7100 net-do you need the cash for anything urgent?
2. At the current rates for annuities £8352 would only buy a very small income -maybe £300 per annum,again taxed -do you need an extra few quid per month??
Only you know what your overall financial situation is.
Whatever he decides it wouldn't have any direct effect on his State Pension.

zygurat789

tkeenan31 wrote: »

My husband, who will be 60 in September, has received notice from Equitable Life that his "with -profits" pension is valued at £8,352.40. His option are: (1)Take savings as cash. (2)Transfer the savings to another company. (3)Use the savings to but an annuity on the open market. (4)Keep the savings where they are. Any advice please?

EL are holding £8,300 for your husband. They offer you 4 options.
To make a decision it would help if you knew
State pension forecast for you both
Any other pensions for either of you
Savings fior both of you
His health, your health

xylophone

You will both become eligible for state pension in the new scheme?

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

Do you have an immediate need for a lump sum/additional income?

Is your husband currently contributing to a personal pension/ an occupational pension scheme ( if so what kind) and does he intend to do so until he retires?

https://www.pensionwise.gov.uk/ - face to face appointment?

atush

The best thing to do would be - IF this is his only pension (dont see that you answered that one) to add more to that or another pension.

Then take all pensions at 67 when he retires. They will grow more in the interim, plus you will pay less tax on them then (as he will have a PA larger than his state pension) plus he will be able to use some of your unused PA.

xylophone

he will be able to use some of your unused PA.

We don't know that she has any unused PA?

atush

Well she would know if she does now, or will later. We do not.


But important to know all the same?