Cashing in your Pension pot....?

[lookingforward]

Re: Cashing in your Pension pot....?

Saw a headline in one of the papers about miss-sold annuities when I was out shopping earlier. This seems to be the story

http://www.thisismoney.co.uk/money/p...worse-PPI.html

[cardiac arrest]

Re: Cashing in your Pension pot....?

Saw a headline in one of the papers about miss-sold annuities when I was out shopping earlier. This seems to be the story

http://www.thisismoney.co.uk/money/p...worse-PPI.html

it's a nightmare isn't it...i just filled in my 'medical questionaire'...smoke ? 100 a day...drink ? 4 bottles a day...weight ? 36 stone....taking medication ? How long have you got .. ...on this basis I reckon they'll be paying me a fortune ? in reality i've yet to see anyone get any more money due to lower life expectancy... have to wait until 6 weeks before retirement now for the final info on the size of my 'pot' and a few quotes from other companies.... 27 years invested in the 'with profits' fund and guess what...not a blooming penny more than the guaranteed minimum...

[lookingforward]

Re: Cashing in your Pension pot....?

Still a glimmer of hope

http://www.bbc.co.uk/news/uk-politics-30670639

[SXGuy]

Re: Cashing in your Pension pot....?

New changes are coming. You can now defer your government pension for a few years and it will gain interest each year and increase the annual amount you receive. Depending on what your entitled to. Some people could benefit from living off their private pension and deferring the state pension for 5 years, gaining interest on the payments. As always best to check with an expert if it's worth doing in your own siuations

[cardiac arrest]

Re: Cashing in your Pension pot....?

New changes are coming. You can now defer your government pension for a few years and it will gain interest each year and increase the annual amount you receive. Depending on what your entitled to. Some people could benefit from living off their private pension and deferring the state pension for 5 years, gaining interest on the payments. As always best to check with an expert if it's worth doing in your own siuations

you've always been able to defer your state pension, and the interest was pretty good...but they have now reduced the interest rate paid...after one year you can take a lump sum, or have a slightly higher pension payment... for the amount involved on a basic state pension , and the lower interest rate, i'd rather have the cash in my grubby mitt ...which is what i've planned to do in March...

[cardiac arrest]

Re: Cashing in your Pension pot....?

https://www.gov.uk/deferring-state-p...at-you-may-get

10.4% interest if you retire before 6th April 2016, if you're retiring after that date deferrment will pay 5.8%....less tax if payable.

[lookingforward]

Re: Cashing in your Pension pot....?

Might hear something in the budget

http://www.telegraph.co.uk/finance/p...annuities.html

http://www.thisismoney.co.uk/money/p...l-instead.html

[cardiac arrest]

Re: Cashing in your Pension pot....?

sounds like an instant money maker for the investment companies...a 20% spread on the buying and selling price...on £10bn+ ?

[lookingforward]

Re: Cashing in your Pension pot....?

Confirmed in todays budget from 04/2016

http://www.which.co.uk/news/2015/03/...hanges-398116/

I'd rather have a lump sum than the £30 a month a get now that's for sure

[The Tech Clerk]

Re: Cashing in your Pension pot....?

will the catch be no top up later years of state pension if you have no pension income via private pension???? if they willo top up we all would get rid of our Annuitie??> i am wondering?

[MrsD]

Re: Cashing in your Pension pot....?

sounds like an instant money maker for the investment companies...a 20% spread on the buying and selling price...on £10bn+ ?

and in the great scheme of things it will save the company admin time and money if they can just give you the money to disappear, I imagine they'll bite your hand off

[cardiac arrest]

Re: Cashing in your Pension pot....?

and of course, the govt get the tax up front rather than over the lifetime.... handy that...

[lookingforward]

Re: Cashing in your Pension pot....?

Ros Altmann Minister for Pensions in David Cameron’s new government now says on her blog:-

"Towards the end of the last Parliament, the Government announced that the new pension freedoms could be extended to those who already have annuities – I very much hope this will become reality."

I don't like that word COULD, sounds like the pre cursor to a change of plan to me

[cardiac arrest]

Re: Cashing in your Pension pot....?

Ros Altmann Minister for Pensions in David Cameron’s new government now says on her blog:-

"Towards the end of the last Parliament, the Government announced that the new pension freedoms could be extended to those who already have annuities – I very much hope this will become reality."

I don't like that word COULD, sounds like the pre cursor to a change of plan to me

tbh, I think it's more about trying to find someone who will buy these annuities. As we know, annuity rates have plummeted over recent times and for the pensioner have proved pretty poor stuff Ithink a £100,000 fund would be lucky to get you much more than £3500pa nowadays..Buying the annuity off the pensioners is the issue, how much would they offer..? surely not the £100,000 because there has to be a profit in it for the finance companies..maybe you'dbe lucky to £80,000...okay, so you've £80,000 in cash you didn't have before...but when you backtrack that over the lifetime of your saving plans it ends up being a crap deal and a half. This is going to be the issue when free market forces get involved. and is probably why she uses 'could' rather than will.

[lookingforward]

Re: Cashing in your Pension pot....?

tbh, I think it's more about trying to find someone who will buy these annuities. As we know, annuity rates have plummeted over recent times and for the pensioner have proved pretty poor stuff Ithink a £100,000 fund would be lucky to get you much more than £3500pa nowadays..Buying the annuity off the pensioners is the issue, how much would they offer..? surely not the £100,000 because there has to be a profit in it for the finance companies..maybe you'dbe lucky to £80,000...okay, so you've £80,000 in cash you didn't have before...but when you backtrack that over the lifetime of your saving plans it ends up being a crap deal and a half. This is going to be the issue when free market forces get involved. and is probably why she uses 'could' rather than will.

I understand, I'm looking at it from my POV and I'm hoping to get a lump sum rather than £30 odd quid a month