I'm due to turn 55

Strider71

QrizB said:

Strider71 said:

My end goal is to have as much money in pension and investments to retire comfortable.

If that's your goal, I have to wonder why you're drawing pensions at 55 whle you continue to work. You might find you'll be better leaving your current pensions invsted until you retire.
Have you already told your old pension providers that you want to draw your pensions? If not, you might want to reconsider.

I am drawing early to pay my debts so I can invest more for my retirement.

MallyGirl

Taking money from an old workplace pension - which is invested - in order to put it into a S&S ISA which is invested doesn't achieve much and you could be incurring unnecessary tax by doing it

Strider71

MallyGirl said:

Taking money from an old workplace pension - which is invested - in order to put it into a S&S ISA which is invested doesn't achieve much and you could be incurring unnecessary tax by doing it

I have decided to draw a lump sum from the old pensions to pay my debts, then no further money will be taken from the old pension, until I retire. Not touching my workbase pension I am paying into now. It then will release about 30% of my out going costs, then reinvest the extra 30% into my old DC pension and ISA stock and other investment.

MallyGirl

First mention of debts so your goal in this is now clearer. You can take the tax free from the DC pension to pay debts and leave the rest invested. You can't do that with the final salary which is a good thing (in retirement funding terms)

ali_bear

Sounds like you are being tempted by the possibility of accessing pension lump sums now (at 55) to pay down your debts. In my opinion this is a bad idea. You want to leave your pension money where it is, invested for your future retirement. You need to pay down your debts using your current income and by liquidating some or all of your other investments. If you look at the annual interest you are paying on your debts I am confident it will be bigger than you can get in any kind of reliable investment return. The only likely exception to this is a mortgage - being typically the cheapest form of borrowing available. 

Strider71

Marcon said:

Strider71 said:

Marcon said:

Strider71 said:

I am watching a lot videos on investing. I have came to the party late for investing, but I want to invest as much as I can. After I draw money from my pension when I'm 55. I know the rest of my pension is crystalized. I will still be working full time and paying into a workbase pension max at 13%, not touching this pot until I finally retire. till  at least 63-65. But I was thinking of drawing 3% of my crystalized fund every year to re-invest into ISA stocks and other investments. What are peoples thoughts? Any advice would be welcomed.

What are you trying to achieve by doing so?

Your pension is an investment. Assuming it's a defined contribution scheme (?is it), then why do you need to withdraw funds from a tax-favoured environment to 're-invest into ISA stocks and other investments' - which might not all have the same tax advantages. Why not look at changing the funds in with you are invested within the DC pension scheme?

These are old pesion pot, which I don't contribute anymore. I am not touching my workbase pension. 

That doesn't answer the question. Is it a DC scheme? If so, is there anything to stop you switching to different funds within the existing pension rather than moving your cash out of a tax sheltered environment?

I have decided to draw a lump sum from the old pensions to pay my debts, then no further money will be taken from the old pension, until I retire. Not touching my workbase pension I am paying into now. It then will release about 30% of my out going costs, then reinvest the extra 30% into my old DC pension and ISA stock and other investment.

Strider71

Strider71 said:

QrizB said:

Strider71 said:

Baldytyke88 said:

The state pension age is increasing and some private pensions match the state pension age. Are you able to draw your pension at 55?

These are old pension I don't contribute anymore.

That hasn't answered the question.

The law has changed and most pensions will shortly have a minimum age of 57. A few pensions can continue to allow withdrawal at 55.

Have you confirmed with your pension scheme administrators that you will still be able to draw them at 55, and won't be affected by the change in the law?

Yes I have. I turn 55 January 9th in a month. 

I have decided to draw a lump sum from the old pensions to pay my debts, then no further money will be taken from the old pension, until I retire. Not touching my workbase pension I am paying into now. It then will release about 30% of my out going costs, then reinvest the extra 30% into my old DC pension and ISA stock and other investment.

Marcon

Strider71 said:

Marcon said:

Strider71 said:

Marcon said:

Strider71 said:

I am watching a lot videos on investing. I have came to the party late for investing, but I want to invest as much as I can. After I draw money from my pension when I'm 55. I know the rest of my pension is crystalized. I will still be working full time and paying into a workbase pension max at 13%, not touching this pot until I finally retire. till  at least 63-65. But I was thinking of drawing 3% of my crystalized fund every year to re-invest into ISA stocks and other investments. What are peoples thoughts? Any advice would be welcomed.

What are you trying to achieve by doing so?

Your pension is an investment. Assuming it's a defined contribution scheme (?is it), then why do you need to withdraw funds from a tax-favoured environment to 're-invest into ISA stocks and other investments' - which might not all have the same tax advantages. Why not look at changing the funds in with you are invested within the DC pension scheme?

These are old pesion pot, which I don't contribute anymore. I am not touching my workbase pension. 

That doesn't answer the question. Is it a DC scheme? If so, is there anything to stop you switching to different funds within the existing pension rather than moving your cash out of a tax sheltered environment?

I have decided to draw a lump sum from the old pensions to pay my debts, then no further money will be taken from the old pension, until I retire. Not touching my workbase pension I am paying into now. It then will release about 30% of my out going costs, then reinvest the extra 30% into my old DC pension and ISA stock and other investment.

That's starting to make more sense. If your 'old' DC pension is very old, you may fare better if you look at starting a new one with more modern terms - and possibly a wider choice of investment funds.

Strider71

Marcon said:

Strider71 said:

Marcon said:

Strider71 said:

Marcon said:

Strider71 said:

I am watching a lot videos on investing. I have came to the party late for investing, but I want to invest as much as I can. After I draw money from my pension when I'm 55. I know the rest of my pension is crystalized. I will still be working full time and paying into a workbase pension max at 13%, not touching this pot until I finally retire. till  at least 63-65. But I was thinking of drawing 3% of my crystalized fund every year to re-invest into ISA stocks and other investments. What are peoples thoughts? Any advice would be welcomed.

What are you trying to achieve by doing so?

Your pension is an investment. Assuming it's a defined contribution scheme (?is it), then why do you need to withdraw funds from a tax-favoured environment to 're-invest into ISA stocks and other investments' - which might not all have the same tax advantages. Why not look at changing the funds in with you are invested within the DC pension scheme?

These are old pesion pot, which I don't contribute anymore. I am not touching my workbase pension. 

That doesn't answer the question. Is it a DC scheme? If so, is there anything to stop you switching to different funds within the existing pension rather than moving your cash out of a tax sheltered environment?

I have decided to draw a lump sum from the old pensions to pay my debts, then no further money will be taken from the old pension, until I retire. Not touching my workbase pension I am paying into now. It then will release about 30% of my out going costs, then reinvest the extra 30% into my old DC pension and ISA stock and other investment.

That's starting to make more sense. If your 'old' DC pension is very old, you may fare better if you look at starting a new one with more modern terms - and possibly a wider choice of investment funds.

Thanks for all your advice Macron