Early retirement...

Dunree

robin61 wrote: »

Congratulations on your escape !
+1 for taking the lower lump sum and the bigger pension. By the time you are 60 you will start making a profit. So a much better option unless you have a very limited life expectancy.

Thanks Robin

Hopefully I have quite a good few years left in me yet

Linton

Dunree wrote: »

No bigadaj,

Here are the other options..

Option 1 Pension of £18018.35 a year.
or
Option 2 Pension of £13094.10 a year plus a maximum lump sum of £81619.47.
or
Option 3 Pension of £20515.20 a year reducing to £14291.71 a year from 26 November 2029.

PS the pensions should increase with inflation - check the Ts& Cs.

PS the pensions ahould increase with inflation
or
Option 4 Pension of £15232.67 a year reducing to £9009.18 a year from 26 November 2029
Option 4 plus a maximum lump sum of £87557.93.

The 5th one is £17k p/a and £60k lump sum.

The figures look odd. Starting at £18K pension and no lump sum, a £60K lump sum costs £1K pension which is very cheap. Whereas a further £21K lump sum costs £4K pension which is very expensive. Are you sure they are right?

You may be able to "empty the pot" and move the cash elsewhere but it is likely to be difficult and expensive. Whether its worthwhile depends on the transfer value. In most cases we see here emptying the pot is a seriously bad idea.

Dunree

Linton wrote: »

The figures look odd. Starting at £18K pension and no lump sum, a £60K lump sum costs £1K pension which is very cheap. Whereas a further £21K lump sum costs £4K pension which is very expensive. Are you sure they are right?

You may be able to "empty the pot" and move the cash elsewhere but it is likely to be difficult and expensive. Whether its worthwhile depends on the transfer value. In most cases we see here emptying the pot is a seriously bad idea.

Hi Linton,

The figures are direct from the provider. I work under the auspices of TFL. This is their figures. I also transferred my previous pensions into the pot.

They have already told me that I can't empty the pot. I was hoping to do that then use the money to buy a property near the coast outright, and use it as a holiday rental.

So the pot stays where it is

atush

Why can you 'retire' at 53?

Dunree

atush wrote: »

Why can you 'retire' at 53?

The pension fund allows me to

I can start drawing my pension from the age of 50.

Goldiegirl

Some company schemes retained the age of 50 for it's members to start drawing a pension.

robin61

Goldiegirl wrote: »

Some company schemes retained the age of 50 for it's members to start drawing a pension.

Yes our' s did. If you can live with the actuarial reduction. Not many can afford to take it that early.

Dunree

robin61 wrote: »

Yes our' s did. If you can live with the actuarial reduction. Not many can afford to take it that early.

We're lucky that there is no mortgage involved.

There is some debt but the lump sum will take care of that.

The pension is less than half the salary, but with no debt as such, I think it could be do-able

atush

robin61 wrote: »

Yes our' s did. If you can live with the actuarial reduction. Not many can afford to take it that early.

That was my whole point? what is the reduction in t his case?

quotememiserable

Dunree wrote: »

One thing though, the £17k p/a, does that increase year on year?

Well, it depends on your scheme rules, but since this is clearly a DB scheme, with 99% certainty it will increase with inflation, possibly capped at (say) 5%. So even greater value in taking the pension, because this increase will have enormous benefits in the long term.