How long before I receive deferred SP?

luvchocolate

Its madness, how long have you been waiting for the choices letter now?
Can I ask when I need to call them to claim my pension in the first place? want it mid September.
Thank you

p00hsticks

luvchocolate wrote: »

Can I ask when I need to call them to claim my pension in the first place? want it mid September.

Do you mean that you are reaching State Pension Age in September ?
If so, you should have received a letter by now inviting you to claim. If you haven't I suggest you give them a call or submit a claim online

https://www.gov.uk/state-pension/how-to-claim

xylophone

Do you mean that you are reaching State Pension Age in September ?

OP is in deferment.

Post 5
http://forums.moneysavingexpert.com/showthread.php?p=70949361#post70949361

xylophone

OP, have you carefully considered all your options as previously discussed?

luvchocolate

Thank you for your concern, I had appointment with pensionwise last week and I am finding the whole situation very stressful.
I really appreciate your advice on my other thread, I am struggling to know what to do for the best.
thank you very much

xylophone

your advice

Not advice as this is not allowed on the forum!

However, it seems to me worth your while considering the suggestions put forward by me and other posters.

What guidance did Pension wise offer when you went for your interview?

Did you approach your "works FA" and ask him to look at the continuing deferral option?

Incidentally, I take it that your "works pension" is a DC pension and doesn't have any safeguarded benefits?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

luvchocolate

Sorry I meant suggestions!
Pensionwise went through all my options we discussed draw down and she said if she was me she would just wait a while see if annuities pick up enough.
My works F.A who has checked the whole of the market gets no better than Canada Life on the money advice calculator, he also thinks if I can afford to wait to do that.
I am find it hard to make the right decision as this is very important and due to my experiences over the past 10 years very cautious.
Yes its D.C pension.

I seem to have derailed this thread apologies for that.

xylophone

I can appreciate your caution.

However, give it some more thought and look again at post 19 here
http://forums.moneysavingexpert.com/showthread.php?p=70949057#post70949057

You have indicated that you have £15,000 in savings and a DC pension (with no safeguarded benefits) of £85,500 currently held in the cash option in your pension scheme - I assume that this is with one of the insurance companies?

If you wanted the "drawdown option", does your current pension provider offer it?

If not, and you wanted to choose this route, you would need to transfer to another provider.

It also appears that if you did choose drawdown, you would wish to hold your pension in cash.

If so, then it seems to me that the Hargreaves Lansdown SIPP would be worth your consideration because they do not charge to hold the SIPP in cash, nor for the administration of withdrawals.

You indicate that you will be moving to a privately rented property in your old home area and that you expect to spend £10,000 on moving and furnishing costs.

You also indicate that this property may be a stop gap as you are hoping that a housing association/ sheltered housing property will become available.

You indicate an income requirement of £1000 a month.

You could leave your state pension in deferment.

You could transfer your pension to the SIPP and take the PCLS , leaving the balance, (which would be over £60,000) in cash.

You could live on PCLS/balance of savings, and then from the beginning of the new tax year, (when the personal tax allowance will increase to £11,500), arrange monthly withdrawals of say £950 a month- which would be tax free income.

Whatever you did not spend, you could save in the highest interest paying account available to you.

It seems likely that you will benefit from the 0% savings band as well as the Personal Savings Allowance.

http://www.taxvol.org.uk/about-tax/entitled-10-band-savings-interest/

You could even consider paying £2880 annually into your SIPP and receiving added tax relief of £720 a year.

Doing the above would mean that your state pension would benefit from several years more deferral uplift - when you came to draw it, possibly not until your early seventies, your state pension, with its inflation linking, would be likely to see you with enough income for your needs?

At all events, as you have been advised by the works IFA and Pension wise, now does not seem a good time to take an annuity.

If you do not take an annuity, what is your plan?

Remember that it is open to you to take advice from an Independent Financial Adviser - if you have no safeguarded benefits this does not need to be a pension transfer specialist.

As you say, you have an important decision to make so it is worth "doing the figures".

DancingBadger

At last, just over 12 weeks from my initial SP claim on 4 May, the choices letter arrived today. :j

I've opted for the extra weekly payment and the extremely nice man at the DWP said it'll take two weeks to process and should be paid, including the backdated payment, with my basic SP on 23 August. Whether he meant 23 August this year or next year remains to be seen. :rotfl:

luvchocolate

I am so pleased to hear this is almost sorted out fingers crossed for you