taking pension early or not

Fash

Hi - I'm being made redundant this year and as part of the package I've been offered the chance to take my pension. I'm 57 and have worked for my employer for 30 years so my redundancy pay quite good. Am concerned though about getting another job and I was thinking that if I take my pension early I wouldn't be under as much pressure to get a well paid job - I still have a mortgage which doesn't clear until I'm 65.

Can anyone advise me if I should take the pension now or leave it until I'm 65. Obviously if I take it now it will be less than if I leave it.
Thanks.
Regards
Fash

Edinburghlass_2

I've popped you over to the Pensions Board for more help.

McKneff

it wont be much less, i read something in the daily mirror not so long since
that if you pay into a money purchase pension for 5 years it only puts
an extra couple of hundred pounds on your annual pension. Compare that to how much you have paid in over the last 5 years.
Personally i am going to grab my pension with both hands, put it in an ISa, at least the money is there as a whole and not given to you over what few years. you may be drawing it. You have to guess how long your going to live and will you recoup all that money, its unlikely
It depends also if you are on a final salary scheme or money purchase
scheme, The other thing is you might pay in all this money till yur 65, pop your clogs 6 months later, and if you havent taken out a guarantee term the whole lot reverts back to the pension company, smacks of the old protection rackets back in the 20's
best advice anyone can give is see a fsa
good luck

EdInvestor

You really need to post some figures about how much you would get now, taking the pension early, and how much if you waited, including any commutation rates on lump sums.

Tell us the actual amounts because tax allowances are also important, as is your state pension - do you know how much you will get?

jem16

anniehanlon wrote: »

Personally i am going to grab my pension with both hands, put it in an ISa, at least the money is there as a whole and not given to you over what few years. you may be drawing it.

You do realise that you will only be able to access your pension at retirement and at that point only take 25% of it?

best advice anyone can give is see a fsa

Presumably you mean see an IFA?

McKneff

i was thinking fsa as financial service advisor but i bow to your superior knowledge, of course it should be IFA = i even know it stands for indpendant financial advisor !!!!

Fash

Hi all - thanks as always for your replies - wonderful site! I don't have any actual figures yet so I'll have to get moving on that. When I do I'll post again with them.

Thanks again!
Regards
Fash

Fash

PS - Edinburghlass - many thanks for moving my post - wasn't sure where to put it.
Regards
Fash

McKneff

hello everyone, isnt this a great site. addictive too. i didnt have a ciggie for 4 hours last night - a record for me.