Help with pensions

polardesign

Hi all,

I have a few questions with reference my pensions and retiring early.

My Pensions allow me to retire at 60 and I am 60 in December this year so not long to go.

Let me let you know what my pension forcasts are for December when I retire:

Surrey County council.
Retirement Pension: £8,276.17 per year
Retirement Grant: £24,828.51

Atkins Pension:

I can take a full pension of £3,192.12 per annum
or Reduced Pension of £2,473.80 per annum + Lump Sum £7,182.28
or Reduced Pension of £1,915.00 per annum + Lump Sum £12,766.48

CAn anyone give me the pro's and con's of what Atkins Pension option to select above.

I am not to good with figures but would like to know what my monthly take home would be as I am not sure how to work out tax etc

I will be looking at a small part time job but not straight away. I am moving in with my daughter so don't need to worry about rent etc.

What returns could i expect if I invest my lump sums. I do want to be able access my money easily.

A lot of questions but have had some bad experiences with financial advisers so thought I would use this site.

PLease help as I am confused

CLAPTON

are you male or female?

are the pensions index linked in any way?

polardesign

I am Male, and they are indexed linked I think...

Aegis

I can take a full pension of £3,192.12 per annum

Pros: larger annual sum
Cons: no lump sum from this pension

or Reduced Pension of £2,473.80 per annum + Lump Sum £7,182.28

Pros: lump sum on retirement
Cons: reduced annual income, to make the same overall amount you'd need to make up the shortfall of about £720 pa using the lump sum, assuming you didn't want to spend it.

or Reduced Pension of £1,915.00 per annum + Lump Sum £12,766.48

Much the same pros and cons as option 2, only now the shortfall is about £1280 pa and the lump sum to try and make that up with would be proportionally higher.

All in all, it's not a straight forward case, and entirely depends on whether you feel you can make better use of the lump sum then effectively getting 10% of that amount each year for the rest of your life, index linked.

EdInvestor

How much are you expecting to get in state pension at 65?

At first glance, and especially if the Atkins pension is index linked, the lump sum options look poor, with the lump sum likely to generate under half the income lost from the pension.

polardesign

How do you find how much you will get from a state pension?

Also back to the first question I am trying to work out how much my pension will give me each month after tax. Forget about the lump sum just the monthly pension part.

This is the figure I am trying to workout

Helppppppp???

EdInvestor

Contact https://www.thepensionservice.gov.uk for a state pension forecast ( may not be aviable unitl October as computers currently being updated.)

Re the tax, assuming at 60 you have a normal personal allowance of around 6k, deduct that from the main pension and then you would pay 20% tax on the remaining amount and 20% on the whole of the Atkins pension..

After age 65 you will get a tax free allowance of 10k a year, but the state pension is is taxable, so it will take up at least half the allowance and for some people, all of it.

polardesign

My next step...

I will have £25,000 from surrey CC and £7.182 from Atkins.

What monthly returns could I expect from a high interst account or ISA. I would like access to the money if required.

I look at account saying 6% what does that actually mean. I get 6% interest on my pension every year?

I am looking at getting montly interest...

I am not to good at all of this any help much appreciated.

EdInvestor

If you have 25k saved in an account @ 6% interest you would get 1,500 p.a. This would be taxed at 20%, leaving 1,200 ie 100 pounds a month.

IMHo not advisable to take cash from the Atkins pension based on the figs you have given, but also depending on what state pension you will get and also on inflation index linking aspect of the pension.

polardesign

IMHO what does it mean....

Will apply for state pension forcast later

thanks

Steel_2

IMHO = In My Honest Opinion