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do i need to take my lump sum in one go

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  • edited 10 January 2020 at 7:35AM
    AlanP_2AlanP_2 Forumite
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    edited 10 January 2020 at 7:35AM
    markbsac wrote: »
    but in 7 years from 60 when i get my state pension as does the wife we will have more than enough on our monthly pensions to live comfortably on

    That's great but still worthwhile investigating the option of investing some of it in S&S for higher returns longer term.

    Later life care may be needed for one of you, plus do some rough and ready calculations at least to see what the income / expenditure situation would look like as and when one of you passes away. Would the survivor still be financially secure?

    The latter point can often be an issue if the defined pension income is not evenly spread between the couple and will potentially drop by 50%.

    BTW check your SP forecasts carefully. With a DB pension you may well have been contracted out at some stage which may affect the SP payable. Many of us in that position need to pay a few more years NI even when taking pensions to get to full New SP level.
  • wjr4wjr4 Forumite
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    If you have £100k in cash, do you need to take the pension now? Can you wait until you are 60 so you do not have the reduction of income?
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
  • BrilleyBrilley Forumite
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    ..similar situation that we were in a few years ago so decided to leave the DB pension untouched and use our savings to fund early retirement. If you have the cash spend it first and let the pension continue to increase in value. And yes, when you have been a saver all your life it is difficult to start spending and watching your savings go down each year rather than up! However I got my head around this by setting up a spending budget (ie rather than a savings budget), on a spreadsheet as at least this gives you some confidence in that you can see what you can actually spend each year.
  • cloud_dogcloud_dog Forumite
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    Brilley, what is your wife's pension position should you unfortunately pop the mortal coil?

    Might that affect whether you take the TFLS or high pension? If your DB scheme is like mine the spouce's pension is 50% of my maximum pension not my reduced, post TFLS pension.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • markbsacmarkbsac Forumite
    100 posts
    cloud_dog wrote: »
    Brilley, what is your wife's pension position should you unfortunately pop the mortal coil?

    Might that affect whether you take the TFLS or high pension? If your DB scheme is like mine the spouce's pension is 50% of my maximum pension not my reduced, post TFLS pension.

    yes i can choose what pension she gets 0% 50% or 100% but of course this will reduce our pension now to live on...its a gamble...but she will have lots of cash in our bank accounts.
  • markbsacmarkbsac Forumite
    100 posts
    Brilley wrote: »
    ..similar situation that we were in a few years ago so decided to leave the DB pension untouched and use our savings to fund early retirement. If you have the cash spend it first and let the pension continue to increase in value. And yes, when you have been a saver all your life it is difficult to start spending and watching your savings go down each year rather than up! However I got my head around this by setting up a spending budget (ie rather than a savings budget), on a spreadsheet as at least this gives you some confidence in that you can see what you can actually spend each year.

    yes my friend this is what i have done a spending budget...basically all my bills are paid for the next 36 months and the money sits in my current account and then just taken each month i then have £30,000 spending budget from my savings accounts plus another £20,000 should i need it...and my pension will grow over the next 3 years up to 60 :-)
  • markbsacmarkbsac Forumite
    100 posts
    wjr4 wrote: »
    If you have £100k in cash, do you need to take the pension now? Can you wait until you are 60 so you do not have the reduction of income?

    this is what i am doing living off my savings not touching my pension until im 60
  • markbsacmarkbsac Forumite
    100 posts
    Alanp wrote: »
    That's great but still worthwhile investigating the option of investing some of it in S&S for higher returns longer term.

    Later life care may be needed for one of you, plus do some rough and ready calculations at least to see what the income / expenditure situation would look like as and when one of you passes away. Would the survivor still be financially secure?

    The latter point can often be an issue if the defined pension income is not evenly spread between the couple and will potentially drop by 50%.

    BTW check your SP forecasts carefully. With a DB pension you may well have been contracted out at some stage which may affect the SP payable. Many of us in that position need to pay a few more years NI even when taking pensions to get to full New SP level.

    my ni is almost there at the moment i lose £5.00 a week nothing im worried about..i have my astra zeneca pension and military pension...until i pop my cloggs :-)
  • AlanP_2AlanP_2 Forumite
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    markbsac wrote: »
    yes i can choose what pension she gets 0% 50% or 100% but of course this will reduce our pension now to live on...its a gamble...but she will have lots of cash in our bank accounts.

    Are you saying you can choose whether your wife gets 0%, 50% or 100% of one or more of your DB pensions, albeit at a cost?
  • edited 10 January 2020 at 5:39PM
    markbsacmarkbsac Forumite
    100 posts
    edited 10 January 2020 at 5:39PM
    Alanp wrote: »
    Are you saying you can choose whether your wife gets 0%, 50% or 100% of one or more of your DB pensions, albeit at a cost?

    yes i can choose from my astra zeneca pension...my military pension no that has to go 100% to me...below is from my pension quote

    Your benefit options with your Retirement Account
    and Investment Account
    You can choose the level of spouse’s
    pension from the three levels shown or
    anything in between
    Minimum spouse’s
    pension
    50% spouse’s
    pension
    100% spouse’s
    pension
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