|
Post by Pilch on Mar 17, 2024 21:56:34 GMT 1
anyone know anything about pensions ? being 55 I can claim 25% of my Royal Mail pension tax free its not a lot I know that much ;-( anyone know what other options are available ? im presuming this is standard no matter what the company is and what if I leave ?, does that give other/ better options ? any Martin Lewis 's out there
|
|
|
Post by staffordshrew on Mar 17, 2024 22:34:23 GMT 1
anyone know anything about pensions ? being 55 I can claim 25% of my Royal Mail pension tax free its not a lot I know that much ;-( anyone know what other options are available ? im presuming this is standard no matter what the company is and what if I leave ?, does that give other/ better options ? any Martin Lewis 's out there If you wanted to pay off a high interest debt or something then taking 25% it could be. But you will be able take 25% when you retire and that should be 25% of a bigger amount. Personally, assuming your postal pension is still a pretty good pension then I would keep that intact as your backstop and invest anything above that in something you want to. You have had other jobs, the railways? Is there a pension left behind there? You could also have 25% of that one, if you were going to move that you could take 25% of that and invest it in a cheap SIPP, you are not really supposed to get 20% back on the tax on the money you already had tax relief on, but who's to know? As for any SIPP investment, the only person interested in your wealth is yourself, I'd tell my low cost SIPP provider to put it into Rio Tinto, the mining company, at the moment.
As a member of a reasonably good pension scheme, I certainly wouldn't go listening to any "advisors" after getting fees or commission from your money.
|
|
|
Post by peterjones1 on Mar 17, 2024 22:37:13 GMT 1
Actually worked in pensions for a few years a while ago but think I was too young to really take an interest, it all just seemed too far away - wish I'd shown more of an interest really.
From memory, you have the option to take the 25% tax free regardless of which option you choose (if indeed you do choose to take it now). You can either take the lot as a lump sum in one go (so your first 25% tax free, taxed on the rest), buy an annuity (so your 25% tax free and the remainder will be used to pay you an income for the rest of your life) or, during my time working there, another option was introduced - flexible drawdown. This allows you to take the 25% tax free and then leave the rest where it is to draw upon as and when you choose - you will be taxed on these withdrawals though from what I recall and I believe certain pensions may not offer this option, so check with your provider. Also, not sure of your circumstances obviously but if you are in receipt of any means tested benefits then drawing your pension can impact your eligibility so definitely worth checking that too if applicable.
I'm sure there are plenty of far more clued up people on here who can give you a more comprehensive guide but hope that helps as a basic overview.
|
|
|
Post by Pilch on Mar 17, 2024 22:51:03 GMT 1
anyone know anything about pensions ? being 55 I can claim 25% of my Royal Mail pension tax free its not a lot I know that much ;-( anyone know what other options are available ? im presuming this is standard no matter what the company is and what if I leave ?, does that give other/ better options ? any Martin Lewis 's out there If you wanted to pay off a high interest debt or something then taking 25% it could be. But you will be able take 25% when you retire and that should be 25% of a bigger amount. Personally, assuming your postal pension is still a pretty good pension then I would keep that intact as your backstop and invest anything above that in something you want to. You have had other jobs, the railways? Is there a pension left behind there? You could also have 25% of that one, if you were going to move that you could take 25% of that and invest it in a cheap SIPP, you are not really supposed to get 20% back on the tax on the money you already had tax relief on, but who's to know? As for any SIPP investment, the only person interested in your wealth is yourself, I'd tell my low cost SIPP provider to put it into Rio Tinto, the mining company, at the moment.
As a member of a reasonably good pension scheme, I certainly wouldn't go listening to any "advisors" after getting fees or commission from your money.
already in the process of taking a railway pension, had 4 options there, chose a tax free lump sum and monthly payment until im 67, at which point the amount drops a bit just wanted to find out all my Royal Mail options now including if I leave the company , the only one I know is I can take 25% tax free, its just over 10k
|
|
|
Post by staffordshrew on Mar 17, 2024 22:51:43 GMT 1
Please don't buy an annuity, a dreadful con in most cases. For you I'd say your workplace pension is going to be your best bet, then, if you can afford it, a self invested SIPP which you can take as drawdown. Note that even if retired and not earning you can still put £2880 a tax year into a SIPP and get tax relief to make it £3600, you could even cash that in in the same tax year, provided it's a low cost SIPP, you make a few hundred.
|
|
|
Post by staffordshrew on Mar 17, 2024 22:57:42 GMT 1
If you wanted to pay off a high interest debt or something then taking 25% it could be. But you will be able take 25% when you retire and that should be 25% of a bigger amount. Personally, assuming your postal pension is still a pretty good pension then I would keep that intact as your backstop and invest anything above that in something you want to. You have had other jobs, the railways? Is there a pension left behind there? You could also have 25% of that one, if you were going to move that you could take 25% of that and invest it in a cheap SIPP, you are not really supposed to get 20% back on the tax on the money you already had tax relief on, but who's to know? As for any SIPP investment, the only person interested in your wealth is yourself, I'd tell my low cost SIPP provider to put it into Rio Tinto, the mining company, at the moment.
As a member of a reasonably good pension scheme, I certainly wouldn't go listening to any "advisors" after getting fees or commission from your money.
already in the process of taking a railway pension, had 4 options there, chose a tax free lump sum and monthly payment until im 67, at which point the amount drops a bit just wanted to find out all my Royal Mail options now including if I leave the company , the only one I know is I can take 25% tax free, its just over 10k Well, I'd say don't be too eager, whenever from this age before or when you leave the company you can have 25% tax free, is there any reason to rush? 25% later will be more money 'cos your pension fund will be bigger. Note that you could also decide to take any amount up to 25% and perhaps get a little bit bigger pension. But me, I always like any tax free cash...
|
|
|
Post by Pilch on Mar 17, 2024 23:39:43 GMT 1
already in the process of taking a railway pension, had 4 options there, chose a tax free lump sum and monthly payment until im 67, at which point the amount drops a bit just wanted to find out all my Royal Mail options now including if I leave the company , the only one I know is I can take 25% tax free, its just over 10k Well, I'd say don't be too eager, whenever from this age before or when you leave the company you can have 25% tax free, is there any reason to rush? 25% later will be more money 'cos your pension fund will be bigger. Note that you could also decide to take any amount up to 25% and perhaps get a little bit bigger pension. But me, I always like any tax free cash... Wondering if I can get enough to buy a house 👍
|
|
|
Post by MartinB on Mar 18, 2024 7:48:22 GMT 1
Have you had an appointment with Pensionwise? If not highly recommend it. They will explain all your options and implications to you.
Depends on what type of pension(s) you have? Wife and I went a number of years ago. Because her Tesco pension had changed from the advice we were given gave us aloud of great advice and changed our plans and got us extra tax free cash from the Government and Tescos
|
|
|
Post by Pilch on Mar 18, 2024 9:22:42 GMT 1
Have you had an appointment with Pensionwise? If not highly recommend it. They will explain all your options and implications to you. Depends on what type of pension(s) you have? Wife and I went a number of years ago. Because her Tesco pension had changed from the advice we were given gave us aloud of great advice and changed our plans and got us extra tax free cash from the Government and Tescos Good point , I will give them a shout yeah 👍
|
|
|
Post by davycrockett on Mar 18, 2024 9:33:42 GMT 1
|
|
|
Post by hectord0g137 on Mar 18, 2024 10:56:01 GMT 1
My wife worked in finance for over 30 years and is very clued up. She agrees with Staffordshrews comments. If no rush later uptake is better.
|
|
|
Post by martinshrew on Mar 18, 2024 11:17:53 GMT 1
Buying an annuity is pretty much always the worst thing to do.
|
|
|
Post by northwestman on Mar 18, 2024 11:23:15 GMT 1
I now regret taking my 25% of my teachers' pension.
It is calculated on the basis that you get £12 for every £1 that you release from your pension. A 12/1 ratio.
So if you live more than 12 years after collecting that sum, you lose money.
Though the fact it's tax free is obviously an attraction.
|
|
|
pensions
Mar 18, 2024 11:34:16 GMT 1
via mobile
Post by Pilch on Mar 18, 2024 11:34:16 GMT 1
Please don't buy an annuity, a dreadful con in most cases. For you I'd say your workplace pension is going to be your best bet, then, if you can afford it, a self invested SIPP which you can take as drawdown. Note that even if retired and not earning you can still put £2880 a tax year into a SIPP and get tax relief to make it £3600, you could even cash that in in the same tax year, provided it's a low cost SIPP, you make a few hundred. No plans of that
|
|
|
Post by cmonsalop on Mar 18, 2024 11:35:16 GMT 1
I could have taken my pension at 55 but they reduce it to cover the cost of taking it early. I it in full at 60 with no penalty and continued to work part time. They wouldn’t allow me to earn any more than if I was full time. I take home more pay than if I was working full time due to last years pension increase and there’s no NI on pensions. It was a no brainer in my situation. My wife is about to take hers at 60 and reduce her hours, working for the NHS you can take your pension and continue working full time you just need to leave for one day! My employer runs retirement courses for people nearing retirement age do the Post Office do anything like that as I found it really informative. Apologies if I’ve repeated anything I’ve not read the whole thread
|
|
|
Post by Minormorris64 on Mar 18, 2024 11:40:24 GMT 1
I my 25% tax free when I was 55 in 2019, best thing I ever did (Financially, apart from joining the Pension Scheme in 1987)
Paid for Daughter to get through University (Accommodation & Allowance but NOT Course) Paid off remaining Mortgage om House I own with ex-Partner Paid off substantial Debts on Credit Cards.
NOW Debt Free Still got a lump of Cash left over after all that. Pension Account higher than it was before I TFLS
Going to a 4 day week in April and retiring on November 1st just ahead of my 60th Birthday.
|
|
|
Post by martinshrew on Mar 18, 2024 11:42:02 GMT 1
Some good advice on here 👍
I'm planning for life without the state pension as I don't believe it'll exist in its current form by the time I draw it.
|
|
|
Post by martinshrew on Mar 18, 2024 11:43:03 GMT 1
I my 25% tax free when I was 55 in 2019, best thing I ever did. Paid for Daughter to get through University (Accommodation & Allowance but NOT Course) Paid off remaining Mortgage om House I own with ex-Partner Paid off substantial Debts on Credit Cards. NOW Debt Free Still got a lump of Cash left over after all that. Pension Account higher than it was before I TFLS Going to a 4 day week in April and retiring on November 1st just ahead of my 60th Birthday. I guess it depends how big your 25% is, different conversations if it's £100,000 as opposed to £10,000.
|
|
|
pensions
Mar 18, 2024 11:46:13 GMT 1
via mobile
Post by Pilch on Mar 18, 2024 11:46:13 GMT 1
I could have taken my pension at 55 but they reduce it to cover the cost of taking it early. I it in full at 60 with no penalty and continued to work part time. They wouldn’t allow me to earn any more than if I was full time. I take home more pay than if I was working full time due to last years pension increase and there’s no NI on pensions. It was a no brainer in my situation. My wife is about to take hers at 60 and reduce her hours, working for the NHS you can take your pension and continue working full time you just need to leave for one day! My employer runs retirement courses for people nearing retirement age do the Post Office do anything like that as I found it really informative. Apologies if I’ve repeated anything I’ve not read the whole thread not really sure about Royal Mail , waiting for some info I requested last week , they actually started their own pension not long after I started which new starters have to go with , I stayed as was advised with the initial one , so it's difficult even to know which pension plan they are on about when you look online , as for leaving for a day and re joining I can see that might cause all sorts of new issues , I'd be off like a shot if I thought I was better off 😃
|
|
|
Post by Minormorris64 on Mar 18, 2024 11:47:06 GMT 1
I my 25% tax free when I was 55 in 2019, best thing I ever did. Paid for Daughter to get through University (Accommodation & Allowance but NOT Course) Paid off remaining Mortgage om House I own with ex-Partner Paid off substantial Debts on Credit Cards. NOW Debt Free Still got a lump of Cash left over after all that. Pension Account higher than it was before I TFLS Going to a 4 day week in April and retiring on November 1st just ahead of my 60th Birthday. I guess it depends how big your 25% is, different conversations if it's £100,000 as opposed to £10,000. It was a lot closer to your first figure than the second , like I say best thing I did was join our Scheme from day one in 1987, I currently pay in 5% and the Company pay in 10%.
|
|
|
pensions
Mar 18, 2024 12:10:03 GMT 1
via mobile
Post by martinshrew on Mar 18, 2024 12:10:03 GMT 1
I guess it depends how big your 25% is, different conversations if it's £100,000 as opposed to £10,000. It was a lot closer to your first figure than the second , like I say best thing I did was join our Scheme from day one in 1987, I currently pay in 5% and the Company pay in 10%. It's hard to get a pension scheme that good these days, 100% match is about as good as it gets. I wish I could get 10%/10%, but ours is 5%/5%.
|
|
|
Post by ProudSalopian on Mar 18, 2024 12:11:11 GMT 1
The main questions are do you know what options your plans give you and what are the implications of taking those options? If you don't know the answers to these then definitely seek advice. Obviously there is then your own personal circumstances which will influence what is the right option for you.
Unfortunately too many people get won over by the attraction of access to instant cash which sounds great but that quickly goes
|
|
|
pensions
Mar 18, 2024 12:15:56 GMT 1
via mobile
Post by Pilch on Mar 18, 2024 12:15:56 GMT 1
The main questions are do you know what options your plans give you and what are the implications of taking those options? If you don't know the answers to these then definitely seek advice. Obviously there is then your own personal circumstances which will influence what is the right option for you. Unfortunately too many people get won over by the attraction of access to instant cash which sounds great but that quickly goes I've not bought my house so hoping to do just that
|
|
|
Post by Minormorris64 on Mar 18, 2024 13:38:38 GMT 1
The main questions are do you know what options your plans give you and what are the implications of taking those options? If you don't know the answers to these then definitely seek advice. Obviously there is then your own personal circumstances which will influence what is the right option for you. Unfortunately too many people get won over by the attraction of access to instant cash which sounds great but that quickly goes Indeed, we have a very good IFA involved with our Work Scheme.
|
|
|
Post by ProudSalopian on Mar 18, 2024 14:09:34 GMT 1
The main questions are do you know what options your plans give you and what are the implications of taking those options? If you don't know the answers to these then definitely seek advice. Obviously there is then your own personal circumstances which will influence what is the right option for you. Unfortunately too many people get won over by the attraction of access to instant cash which sounds great but that quickly goes Indeed, we have a very good IFA involved with our Work Scheme. I always remember about 15 years ago, my employer was trying to get people to opt out of the Final Salary scheme. Those in the scheme (myself included) were getting poor pay reviews whereas those outside of it were getting decent payrises, this happened for a couple of years. Some people got impatient and opted out to get a better payrise, a few wiser/older heads told me to stick with it as it would be crazy to opt out for a couple of years of better payrises. Within a few years, the Final Salary scheme was closed to new contributions and we received quite a bit of compensation in the way of higher employer contributions into the new scheme for a number of years. Those who opted out have all said they regret it (not surprisingly). Again, the attraction of some short term cash made them make a terrible decision, against all advice.
|
|
|
Post by tarporleyblue on Mar 18, 2024 15:20:41 GMT 1
I would definitely endorse Pension Wise as a source of independent advice. I know a number of people who have used the service and said that they were very informative, and clearly explained the options available.
|
|
|
Post by The Clash 1966 on Mar 18, 2024 20:49:24 GMT 1
Take your 25 % tax free lump and enjoy yourself . You never know what's round the corner .
|
|
|
Post by thesensationaljt on Mar 19, 2024 13:31:24 GMT 1
I was on holiday in Manchester yesterday so I mist this. Take the advice above. If you have a final celery pension, DO NOT leave it. These private companies can wave magical figures at you, but they are not bound by it. My trade union did a survey to see if there was anything better out there and there isn't.
I once helped a bloke who was dithering about whether to join a final celery scheme. I was surprised any Juan would offer him Juan. (You'll know this bloke, minor). He said , "but they want £5,000 to take me on", but they were going to backdate it. I told him if he hadn't got 5 grand, get it. It was at a time I was pretty clued up on pensions. When he drove past me when he retired, he said it was the best advice he'd ever been given in his life.
Minor is more up to date on pensions now than me, so if you have a FS pension, I beg you to follow his advice carefully. I offered to share his pension when he retires and I've been sending him a boo kay of half a dozen red roses every friday, but he hasn't offered yet.........
|
|
|
Post by Minormorris64 on Mar 20, 2024 10:55:48 GMT 1
I was on holiday in Manchester yesterday so I mist this. Take the advice above. If you have a final celery pension, DO NOT leave it. These private companies can wave magical figures at you, but they are not bound by it. My trade union did a survey to see if there was anything better out there and there isn't. I once helped a bloke who was dithering about whether to join a final celery scheme. I was surprised any Juan would offer him Juan. (You'll know this bloke, minor). He said , "but they want £5,000 to take me on", but they were going to backdate it. I told him if he hadn't got 5 grand, get it. It was at a time I was pretty clued up on pensions. When he drove past me when he retired, he said it was the best advice he'd ever been given in his life. Minor is more up to date on pensions now than me, so if you have a FS pension, I beg you to follow his advice carefully. I offered to share his pension when he retires and I've been sending him a boo kay of half a dozen red roses every friday, but he hasn't offered yet......... Except ours is not a Final Salary Scheme, and just in case you missed my comment, November 1st is the day.
|
|
|
Post by staffordshrew on Mar 22, 2024 20:34:10 GMT 1
The main questions are do you know what options your plans give you and what are the implications of taking those options? If you don't know the answers to these then definitely seek advice. Obviously there is then your own personal circumstances which will influence what is the right option for you. Unfortunately too many people get won over by the attraction of access to instant cash which sounds great but that quickly goes I've not bought my house so hoping to do just that Sounds like you don't need pensions advice, you need mortgage advice, a Mortgagehound speciality? You like where you live? You can get a discount as a tenant? Then all you need is an appropriate mortgage. With regard to the 25% you can now take out of your pension, it doesn't have to be the full 25% if you don't need it all, you can save some for later. Good luck with the house purchase.
|
|