State Pension Lump Sum or not.

Options
ZZaffy
ZZaffy Posts: 170 Forumite
First Post First Anniversary Combo Breaker
edited 22 January 2019 at 1:16PM in Pensions, annuities & retirement planning
In 2014, I was entitled to draw my state pension, but to date, I have not. Advice please on whether to draw it weekly/monthly or leave it to accrue, if tightening my belt allows. I am confused by the nine-and-a-half-year rule.
«1

Comments

  • xylophone
    xylophone Posts: 44,423 Forumite
    Name Dropper First Anniversary First Post
    Options
    https://www.moneywise.co.uk/pensions/should-i-take-my-deferred-state-pension-lump-sum

    https://www.litrg.org.uk/tax-guides/pensioners-and-tax/what-state-pension-deferral
  • McKneff
    McKneff Posts: 38,825 Forumite
    Name Dropper First Anniversary First Post
    Options
    I am actually confused by aperson who is obviously well ovwr pension age, and who is saving and 'tightening your belt'

    Why on earth are you wanting to do that in what could be the last few years of your life.
    Get it spent on yourself,
    Have lovely holidays, eat the lovely food...get a cruise under your belt...

    A few years ago, i thought like you, then had a major heart attack. I recovered well and then said a few words with my self..
    'Sod it, if i dont spend it, the kids will, so enjoy, and i am doing...

    Good luck
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • Marcon
    Marcon Posts: 10,680 Forumite
    First Post First Anniversary Name Dropper Combo Breaker
    Options
    It isn't a 'rule', simply a projection. The links given above should clarify things for you.
    Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!  
  • ZZaffy
    ZZaffy Posts: 170 Forumite
    First Post First Anniversary Combo Breaker
    Options
    McKneff, each to their own. I am about to move, so that I might spend my last years in a beautiful place. That is why I am going to take the lump sum out soon, but I can take it out now or leave it in a few more months or years until after moving. You have sent me a personal opinion on how you feel I should lead my life but that is not the feedback that I require. If you have any information on the workings out or explanation on the nine-and-a-half-year equation, then I will be most interested.
  • ZZaffy
    ZZaffy Posts: 170 Forumite
    First Post First Anniversary Combo Breaker
    Options
    Marcon, Thank you.
  • xylophone
    xylophone Posts: 44,423 Forumite
    Name Dropper First Anniversary First Post
    Options
    You have sent me a personal opinion on how you feel I should lead my life but that is not the feedback that I require.

    Rather rude to a fellow member of the forum.
  • Bettie
    Bettie Posts: 1,225 Forumite
    First Anniversary First Post
    edited 22 January 2019 at 2:21PM
    Options
    I too deferred in 2014 . I am still working part time so would pay tax if I took my pension weekly. I will be stopping work probably this year and if I get my sums right and don't collect the pension till after I have finished work I will not go into the tax bracket so will pick up the lump sum tax free. If I do go into the tax bracket I believe I can defer the lump sum until the following tax year when I will definitely not be paying tax . I need to confirm that though. I haven't worked out as to whether I would be better off weekly or lump sum but it would be more than 9 1/2 years before I equalised, probably nearer 11
  • mgdavid
    mgdavid Posts: 6,705 Forumite
    First Anniversary Name Dropper First Post
    Options
    ZZaffy wrote: »
    McKneff, each to their own. I am about to move, so that I might spend my last years in a beautiful place. That is why I am going to take the lump sum out soon, but I can take it out now or leave it in a few more months or years until after moving.........


    A shame you didn't say this in your opening post. What other pertinent information have you not yet told us? Without knowing your full circumstances and objectives it is impossible to give guidance. (not 'advice' as that is a regulated activity).
    The quote above is also contradictory; you say

    'I am going to take the lump sum out soon'
    then
    'I can take it out now or leave it in a few more months or years'.
    The questions that get the best answers are the questions that give most detail....
  • ZZaffy
    ZZaffy Posts: 170 Forumite
    First Post First Anniversary Combo Breaker
    Options
    Wished I'd never asked. Post closed.
  • McKneff
    McKneff Posts: 38,825 Forumite
    Name Dropper First Anniversary First Post
    Options
    I wish i hadnt bothered to post either to be honest. Nowhere sid i tell you how to live your life.
    Thank you others for your support.
    You can't close a post ....
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards