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Cashing in your pension???
Bighammo
Posts: 2 Newbie
I have a final salary pension, and i believe I have the option of cashing it in getting the rest when I retire at 60.
What are the pro and cons? and should i take it now as opposed from when i should retire. I am 55.
What are the pro and cons? and should i take it now as opposed from when i should retire. I am 55.
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Comments
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In most cases, that is not the case. At least not directly.I have a final salary pension, and i believe I have the option of cashing it in getting the rest when I retire at 60.What are the pro and cons?
In the vast majority of cases it would be a totally daft thing to do. I am not going to go into the variables as there are so many. Maybe you could tell us why you have this idea and why you think it may be good for you?and should i take it now as opposed from when i should retire.
Which best fits your objectives?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
There will probably be some sort of reduction for taking the lump sum early.
How much will this be and is it worth it?
Does your pension have an automatic lump sum or do you forfeit part of your annual pension for this lump sum?
If you name the company/pension fund them posters might be able to help you more.
Taking your lump sum early to stop your house being repossessed would probably be a wise move, taking it early to change your car or put in the building society would probably be a bad move!0 -
I have the option of cashing it in getting the rest when I retire at 60.
Can you explain this?0 -
I wonder if they are thinking of transferring the final salary to a DC to get at the money inside?
Poster, if that is what you are thinking of doing, then you'd probably be best to think again as it's not likely to be your best option. You might be in the small percentage where it is, but you've not given enough info to make an opinion with.0 -
When you take a CETV for a final salary pension you are giving up the guarantee of a life time income for the uncertainty of being able to generate retirement income by investing the lump sum. You get the chance to produce more income and maybe leave something to your heirs, but platform, fund and advisor fees can also quickly eat into your retirement income......you don't have to worry about that so much for a final salary pension. So you need to do a real world comparison accounting for the relative risks and costs and also for how the final salary vs cashing out option fits in with any other investments and income sources you have.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
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