BT Pension options: opinions please

Simple_Soul

Thanks to everyone who has responded. All your views have been extremely useful in helping me to decide.

I will have send off my final decision in a couple of weeks.

I have taken everything said on board, including advice re: Will and BT shares.

I now appreciate, more than ever, how lucky I am that my pension, whichever option I choose, should be enough to live off for the long haul. And that, though it was changed from RPI to CPI, at least it is not capped (as yet anyway). I feel for those who are not so fortunate.

For me, it is a very close call between the Standard Option (best value for money), and the Maximum Pension Option (best long term security).

After much swinging back and forth, I think I am going to go with the latter.

If I choose the £47k TFLS and I end up getting an inheritance of £100k, I think I will regret not opting for the extra pension, to balance it out.
More so, than I think I would regret not having the cash, if I inherited nothing.

I will feed future savings into 5 year Cash ISAs. I have considered investing, but it is high maintenance, risky, and stressful, and I don't think I need to go there.

In my original post, I said that I planned to defer my State Pension until I was 70 or 75. I have changed my mind about that. I now intend to take it at SP Age. Deferral is a complication I don't need (and I don't entirely trust myself not to forget the pension is there, and end up not claiming it at all).

So, that is where I am today. Thanks again everyone. You're the best.

donny_jim

In your circumstances, I think option 1 is best, but I think it is time you became more adventurous. You have been careful with your money, and yes you may live a long time, but no one knows what's around the corner. Are you retiring ?. If so why defer your state pension. Unless you went really mad (spending) your income will be well above your expenditure, enjoy life while your young enough to enjoy it. REMEMBER you only have one life, make the most of it.

saintalban

A wise decision OP and I also agree about avoiding investing in the stock exchange and sticking with cash ISAs. I’ve got a S&S ISA which has gone all over the place for the past 4-5 years and when it’s up it looks good but that doesn’t balance out the stress caused overall. Good luck for your retirement when you’ll be free to do whatever you want!

mgdavid

donny_jim wrote: »

In your circumstances, I think option 1 is best, but I think it is time you became more adventurous. You have been careful with your money, and yes you may live a long time, but no one knows what's around the corner. Are you retiring ?. If so why defer your state pension. Unless you went really mad (spending) your income will be well above your expenditure, enjoy life while your young enough to enjoy it. REMEMBER you only have one life, make the most of it.

It's a personal view, people are different. Our OP is happy to take a long-term view and go for the higher regular pension which will protect against the unforeseen (e.g. means-tested SP or buying in some help from carers later in life) whereas others will go for the short-term lump sum which enables 'instant gratification' (but when it's gone, it's gone).

Brokeass

I don't have much information but I am thinking of taking my pension early at age 50. I took VR too in 2015. I have about 18 yrs service pre CARE and 6 years Post. I have small AVCs too. What kind of impact should I expect on taking it this early.

I am thinking of carrying on working probably about £10k pa.

I did ask for a CETV last year that was 145k. I have no clue about pensions really. So if anyone has a scooby I would really appreciate some insight.