DB Bridging Pension Option Questions

Phossy

Cobbler_tone said:

I'd been trawling all threads on these as my time is rapidly approaching.
Frustratingly (as with most things), 'it depends' is the answer, which is never a surprise.

1. An advantage is that you may see money that you never would have should the worst happen in the next 10 years (or however long you bridge).
2. The bridge starting point seems to be the state pension amount at the time of starting to take your pension.
2. The spousal part is not impacted...well in the examples I have seen it never is, including my own scheme.
3. You could technically be financially worse off but probably not until you are well into your mid-70's+, at which time you would hope your life plans are suitably sorted. 

I'm airing towards it TBH. I'm not going to trouble 40% tax and have two state pensions to come in 10 years. 

I concur, though I'd put the 'worse off ' timescale as your early eighties; basically the same timescale as if you were to take the lumpsum. I will likely take my bridging option as it gives me more money when I can use it most, I am fortunate that even if I live past the breakeven point (unlikley) I will still have a healthy income, and  whatever I do does not affect my wife.

Cobbler_tone

Phossy said:

Cobbler_tone said:

I'd been trawling all threads on these as my time is rapidly approaching.
Frustratingly (as with most things), 'it depends' is the answer, which is never a surprise.

1. An advantage is that you may see money that you never would have should the worst happen in the next 10 years (or however long you bridge).
2. The bridge starting point seems to be the state pension amount at the time of starting to take your pension.
2. The spousal part is not impacted...well in the examples I have seen it never is, including my own scheme.
3. You could technically be financially worse off but probably not until you are well into your mid-70's+, at which time you would hope your life plans are suitably sorted. 

I'm airing towards it TBH. I'm not going to trouble 40% tax and have two state pensions to come in 10 years. 

I concur, though I'd put the 'worse off ' timescale as your early eighties; basically the same timescale as if you were to take the lumpsum. I will likely take my bridging option as it gives me more money when I can use it most, I am fortunate that even if I live past the breakeven point (unlikley) I will still have a healthy income, and  whatever I do does not affect my wife.

1. Full standard pension
2. Lump sum and reduced pension
3. Enhanced full bridging pension.
4. Enhanced lump sum and bridging pension.

They are the 4 options.

Phossy

Cobbler_tone said:

Phossy said:

Cobbler_tone said:

I'd been trawling all threads on these as my time is rapidly approaching.
Frustratingly (as with most things), 'it depends' is the answer, which is never a surprise.

1. An advantage is that you may see money that you never would have should the worst happen in the next 10 years (or however long you bridge).
2. The bridge starting point seems to be the state pension amount at the time of starting to take your pension.
2. The spousal part is not impacted...well in the examples I have seen it never is, including my own scheme.
3. You could technically be financially worse off but probably not until you are well into your mid-70's+, at which time you would hope your life plans are suitably sorted. 

I'm airing towards it TBH. I'm not going to trouble 40% tax and have two state pensions to come in 10 years. 

I concur, though I'd put the 'worse off ' timescale as your early eighties; basically the same timescale as if you were to take the lumpsum. I will likely take my bridging option as it gives me more money when I can use it most, I am fortunate that even if I live past the breakeven point (unlikley) I will still have a healthy income, and  whatever I do does not affect my wife.

1. Full standard pension
2. Lump sum and reduced pension
3. Enhanced full bridging pension.
4. Enhanced lump sum and bridging pension.

They are the 4 options.

Agreed - 2,3, and 4 are designed to hit a point - typically at the age of 82 to 84 - where you start to 'lose' money compared to having taken option 1. Obviously you need to confirm that for yourself. 

Cobbler_tone

Phossy said:

Cobbler_tone said:

Phossy said:

Cobbler_tone said:

I'd been trawling all threads on these as my time is rapidly approaching.
Frustratingly (as with most things), 'it depends' is the answer, which is never a surprise.

1. An advantage is that you may see money that you never would have should the worst happen in the next 10 years (or however long you bridge).
2. The bridge starting point seems to be the state pension amount at the time of starting to take your pension.
2. The spousal part is not impacted...well in the examples I have seen it never is, including my own scheme.
3. You could technically be financially worse off but probably not until you are well into your mid-70's+, at which time you would hope your life plans are suitably sorted. 

I'm airing towards it TBH. I'm not going to trouble 40% tax and have two state pensions to come in 10 years. 

I concur, though I'd put the 'worse off ' timescale as your early eighties; basically the same timescale as if you were to take the lumpsum. I will likely take my bridging option as it gives me more money when I can use it most, I am fortunate that even if I live past the breakeven point (unlikley) I will still have a healthy income, and  whatever I do does not affect my wife.

1. Full standard pension
2. Lump sum and reduced pension
3. Enhanced full bridging pension.
4. Enhanced lump sum and bridging pension.

They are the 4 options.

Agreed - 2,3, and 4 are designed to hit a point - typically at the age of 82 to 84 - where you start to 'lose' money compared to having taken option 1. Obviously you need to confirm that for yourself. 

Yeah, I have spreadsheets galore. You can get in the ball park but ultimately you'll never know. If you have split caps at 2.5%-5%, plus the unknown of how the extra money performs, or what you do with it. Ultimately, by the time you 'could' have been better off (if you are fortunate to get there) it really won't matter!