I think @stollydriver has said indirectly that he is over 65, as he is already getting his state pension and has two other pension whilst he is still working. That for me says get professional advice and cash in what you can.
No. If you give the financial adviser the details they will get the value for you. Company has to honour all pensions. If the scheme has gone bust then the government pays 90% of it but only when you reach actual retirement age.
Providing you have the details of the dormant pensions you can cash them in at any time without any problems. I think you can take a monthly income or a lump sum, depending on your personal circumstances.
I visit many homes in my job, and I am amazed by how many people - who were physically fit last year - are now either really unwell or in chemo. This has made me rethink my life - why leave pots of money to people who do not deserve it. I will indeed get IFA and thank everyone for their input.
Thats exactly why I have binned an extremely well paid, high pressure job to retire two years earlier than planned. Good luck with whatever you decide to do with it mate
This is what makes this forum great, it's like therapy - ask a question and get feedback - be it educational or funny. I class you all as friends - cheers guys and gals......
I reckon at 60 you have "15 summers". Im planning to spend at least 50% of my fund in that 15 years. Why pay huge sums for care sat next to someone who isn't paying anything. Go to the furthest destinations while you are at your youngest Pension advisers make the mistake of saying your fund gives you for example £2k per month. I dont think I will be spending £2k per month when Im 85 etc. Not unless Im in Thailand!! Better to spend £3k in the earlier months and less when we get older in my opinion
I found myself in a very similar situation and retired at 55 last year. Also with no kids and a great wife who has also retired early. Totally agree with having fun while you can with a major caveat: “if you can, financially “ I feel very very fortunate. Many friends said what the hell are you going to do with yourself? But I have many varied interests and now have time to do what I like when I like. I did not retire and had to then find new past times. One of my older friends said some wise words to me which I truly believe, the biggest limiting factor in our lives is time . I drew down 25% of a pension and went out and purchased a Speed Triple RS !
I retired at 55 I'm 65 this year. took a lump sum but lost some of my monthly pension payment to do that. Never regreted doing that. Slowed down over the last couple of years. The older bones ache on longer rides now, and when I sit by the lake fishing. Totally agree with old school time is the limiting factor and it seem to fly by as you get older. If you can maintain the life you want at retirement and live fairly comfortably, but only you can decide that with the right advice DO IT.
And here’s me trying to go back to work at 63. Financially I don’t need to, it’s just that I’d like to finish off my working life properly. My last job which I liked, I had to give up after 12 months to care for my partner with terminal cancer and the job before that I was there for 16 years before they made me redundant. If I can perhaps do another year or two at my desk I’ll feel satisfied that my career ended successfully. I am getting a company pension from when I worked in the UK and also took a lump sum.
I am 55 - I took the 25% as I was concerned about Jezza taking away my pension options if he got imn. I had to move funds to a modern equivalent pension due to T&Cs but nothing should change in terms of the amount you can pay in. Of course, depending on what you do with that 25% you will potentially lose a lot of growth. Mine went into my mortgage and ISA accounts. You MUST NOT takle a penny more that tghe 25% though or you will severely restrict what you can pay in and may have issues with your tax bill for the year..
As said, get proper advice with a decent IFA. There's so many options such as Levelling the pension with the State pension to increase it now if it's a final salary pension (Don't think this can be done with a drawdown) A decent final salary pension will out perform a drawdown but with less flexibility, a bad one won't , but there again it depends on how long you plan on living etc. And so on. I retired 15 months ago at 55 and, after advice and much reading, I have a stable final salary pension with levelling that pays @75% of my monthly pension and goes up with RPI each year, which will obviously carry on until I die and then 50% goes to my wife and also a drawdown one for the other 25% that gives me flexibility if I should also want some cash for something but otherwise will keep going until I'm 80 or payout 100% of whatever is left in there to my wife if I don't get that far. But everyone's circumstances/pensions are different so it won't be the same for yourself. Best thing I ever did though!
I had a very modest pension pot, as the scheme started late in my life. I took my 25% lump as soon as I was able and invested it with my wife and business partners in a buy to let house. I receive a small monthly income from the annuity which I was forced to buy at the time, rules have since changed. I have shares in 6 buy to lets which provide me with enough income to semi-retire. I will fully retire when I get my state pension in 2 years. Given the right circumstances, I would retire as soon as possible whilst still healthy. My poor little sister died of cancer last summer, aged 61, she paid into pensions all her working life and got nothing. Moral: Grab what you can before the government does!
yes, you can take the 25% but as soon as you take an income from it, you are limited to £3000pa pension contributions before getting destroyed by taxes.* This only applies to defined contribution pensions, if you have defined benefit pensions then you can take the income and not have tax implications on further pension contributions. * now if you are financially literate enough, you can take the 25% tax free and then take £2,880 annual income draw down, then pay this in to another sipp and claim £720 tax rebate, adding £3600 to another pension pot. Do this from age 55 to 65 and you have another nice 25% tax free lump to take. This is not advice, beware of taxes, DYOR
Rang IFA and he said that 1st visit was free although he would not give any advice. After that the fee would be £560 based on his rate per hour and it would take approx 3 hrs. Then they would charge a % of any released funds. I think - being as it's one of 3 pensions - I will take offer and stuff the IFA at this moment.
SleepyOwl. Just today I emailed my provider to say I wanted to convert my pension to this drawdown version. Will let you all know what happens. Had loads of trouble with them in the past where they wouldn't commute my pension to my GSK pension. They say as they pay me some pension there is nothing I can do. But my argument is I never asked them to do it they just decided to pay me it when I got made redundant. Yes all this stuff confuses me and I can't seem to find any one who can help. I also worry about getting ripped of. Regards Joe.