siamesechris

AnotherJoe

Christine, when you start a new thread, "title" is not the nickname you'd like to use. "Title" is the subject you'd like to give to your post, such as "which lump sum should I take"

When you signed up it seems you chose your real name as your display name / nickname , and you can't hide your real name by putting a nickname as the title / subject line for each new post.

As to your question, it's impossible to answer without knowing if you need the bigger lump sum now, how much the extra £500 a year would help you (a bit less after tax possibly) and also do you get any pension credit or other top ups that would be affected by the extra £500.

xylophone

There are suggestions in your other thread.

See

https://forums.moneysavingexpert.com/discussion/comment/75043185#Comment_75043185

Browntoa

To merge threads

christine_cook

Siameschris is me - I thought I had to put my name or nickname in, sorry.
I have never been here before

christine_cook

I don't get anything else...my husband is still working.

Browntoa

It's no problem

Just carry on asking questions

christine_cook

spot on - yes I keep Siamese cats... not a conjoined sister! and now I know that wasn't what was needed under TITLE ! Had it said SUBJECT - I might have got it right....
I started drawing my state pension at 60, its now £85 a week, and I have saved much of it over the years...the small pension I am asking about now is from the local council - I was low paid/casual and wasn't allowed on the pension scheme until a few years ago.
what is a SIPP with HL please?
Yes, I gave round pounds
Having an extra £10 pw rather than a much bigger lump sum didnt seem much, you cant buy much for a tenner. I thought a lump sum sitting in the bank for a rainy day/house calamity might be more useful
Thanks for your comments

jackieblack

Personally, although it might not be the 'right' answer for those more knowledgeable about long term personal finance, I'd rather have the bigger lump sum now and have a couple of really great holidays while I am able to - who knows what the future is going to bring and an extra £10 wouldn't massively affect my standard of living...

AnotherJoe

christine_cook wrote: »

Having an extra £10 pw rather than a much bigger lump sum didnt seem much, you cant buy much for a tenner. I thought a lump sum sitting in the bank for a rainy day/house calamity might be more useful

Good point, as you say you probably wont miss the tenner. As long as having that extra few £k doenst tip you over an amount that means benefits are reduced id say go for it. Also that extra tenner when you are say 85 or 90, you might not spend it anyway. My mum was on absolute basic pension and credits, as low as you can get but in her last few years was accumulating money since she just didnt spend much and i think thats quite common..

christine_cook wrote: »

what is a SIPP with HL please?

A SIPP is a Self Invested Personal Pension. HL is a company' Hargreaves Lansdown with whom you'd open a SIPP (because they dont charge for keeping cash in it)

Dont be phased by the word "invested" because you can keep cash in it. No need to buy shares or funds etc.

In short its a sure fire way to get between £180 and £720 a year free until you are 75 (hwo much you get depends on tax you'd probably get the full £720). read the link that was posted https://forums.moneysavingexpert.com/discussion/5580163/paying-2880-into-pension-when-retired


In short, you pay in £2880 into the SIPP. Government adds in £720 making it £3,600. A free £720. You can then take all or some put (leaving £1,000 in so HL dont charge you). Next year do the same, £2880 -> £3600. Take out the whole £3600. When you are 75 take out the last £1000. Its all in the linked thread xylophone originally posted.


Do it now, well before April, since you can only put in £2880 in each tax year so if you wait until next April you've lost one lot of £720 forever. It stops at age 75.

xylophone

Then LGPS and as Silvertabby says a commutation rate of 1:12 - that is to say, £1 of pension buys £12 of lump sum.

The personal allowance will be £12,500 in 2019-20.

You might wish to consider taking the higher lump sum and deferring your state pension for a couple of years, using the lump sum as an income replacement.

https://www.litrg.org.uk/tax-guides/pensioners-and-tax/what-state-pension-deferral

You would need to contact the Pension Service to do this.

Information on the Hargreaves Lansdown SIPP is here

https://www.hl.co.uk/pensions/sipp

and there is a long thread here

https://forums.moneysavingexpert.com/discussion/5580163/paying-2880-into-pension-when-retired