What to do with DB Scheme

Jimthelob

At what age can you start taking the DB pension without penalties?

CRUISEMAN

Jimthelob wrote: »

At what age can you start taking the DB pension without penalties?

60 years old.

shinytop

What about all the discussion of safe withdrawal rates - isn't 3.5% considered about right? That would give the OP a lot more than £14k.



I'm not saying I would do it, just asking...

Jimthelob

Take it solely as a pension at 60.
Live on your other pensions savings until then.
Enjoy life, it’s too short.

Jimthelob

Remember the pension reforms introduced in 2015/16 made it possible to access your DC pensions at 55.

Albermarle

I mentioned earlier I was offered 32X but that was for a pension that was RPI linked but up to a max of 5% per year . I think this is pretty standard but if the pension is RPI linked but with no limit, that would explain the 40X and this needs to be checked exactly by the OP .
Another point is that there is already £350K in a DC pot . If this went down by £100K and stayed there for 5 years , how would you feel ? Then multiply this feeling by three....

Thrugelmir

shinytop wrote: »

What about all the discussion of safe withdrawal rates - isn't 3.5% considered about right?

What are the underlying investments that will be held to generate this yield?

kidmugsy

Jimthelob wrote: »

Take it solely as a pension at 60. Live on your other pensions savings until then. Enjoy life, it’s too short.

Probably the best policy unless there are relevant features of his situation that he hasn't told us about.

If he adopts that policy he'd be wise to make his DC investments pretty conservative: this would not be the moment to suffer badly from a stock market crash.

cloud_dog

kidmugsy wrote: »

Yes, buying an annuity for his wife after his death would be a solution, but it's a solution that pretty much invites him to retain the DB pension instead.

Yes.

Plus, the OH either needs to know how best to go about doing this or the OP needs to ensure a suitably robust plan so as to assist the OH because, well, the OP won't be here to assist.

shinytop

What are the underlying investments that will be held to generate this yield?

I have absolutely no idea. If you look again my post is a question, not a claim or a statement.