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help...pension?
Comments
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I am assuming that you have been receiving the BT pension since you were 60.
Has it increased in payment or been a flat £18 a month since you started receiving it?1 -
I've been in receipt of it for a few years I can't remember how many but about 6 years ago I cashed in some if it and got about £3000 and was under the impression that was the end of it but the monthly payment was just reduced to £18 which I've been paid ever since...it's gone up by a few pence that's all...0
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I think I rang them initially to cash the pension in as I was so hard up at the time0
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Cashing it in at only 10 times its value doesn't sound like a good idea when you have £65,000 savings available to you. You haven't given us too many details but can't you use your savings to support you until 2025 until you get your state pension at which point you'll have a reasonable income given your house is owned outright?1
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Thanks for your reply...it makes sound sense...I know I'm being very short sighted in thinking of cashing it in but the small pot equates to about 11 years of payments and although I have no specific reason to feel this I could be dead in 11 years so hence my reasoning...I'm aware that this is a forum about finances and your reply is appreciated...0
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Statistically you will live well beyond 74:SINDYGIRL said:Thanks for your reply...it makes sound sense...I know I'm being very short sighted in thinking of cashing it in but the small pot equates to about 11 years of payments and although I have no specific reason to feel this I could be dead in 11 years so hence my reasoning...I'm aware that this is a forum about finances and your reply is appreciated...
https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/articles/lifeexpectancycalculator/2019-06-07
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All views are my own and not the official line of MoneySavingExpert.1 -
Maybe I'm being short sighted in taking the small pot ...I suppose I think £18 a month makes no difference to me in my bank whereas £2000 I could spend...0
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You could just as easily spend say 360 monthly £18's 😊SINDYGIRL said:Maybe I'm being short sighted in taking the small pot ...I suppose I think £18 a month makes no difference to me in my bank whereas £2000 I could spend...0 -
Whilst only you can answer this question, personally I'm struggling to see a compelling reason to cash this pension in if you have £65,000 of other savings.
Even if the roof caves in and you have a £2,000 repair bill to pay wouldn't you be better taking it out of that £65k, and then keeping on drawing the £18pm? Over the next 20 years that £18pm pension adds up to over £4,000.1
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