Retirement

[Paddy O'Dors]

With respect ......... b*****r the executors, it's your life and your pension. Do what's right for you.

As someone who's worked in estate administration for many years I cannot emphasise enough the need to disregard this advice!

 

[DaveH]

I don't think a 6-9 month gap in your CV later in your career is as damaging as it used to be if described as a "career break" or a "grey gap year"

I haven't had more than a few weeks off work at any one time since my 20s so I quite like the idea of once the mortgage is paid off in my taking a year out to do some travelling and then come back refreshed to do something totally different with what is left of my working life. I certainly don't want to be doing another 10-15 years of corporate middle management where there is yet another restructuring announced every few months. Being a Tesco delivery driver sounds great to me.

A gap is fine.

What I mean is that if people are looking at CVs, given I'm senior IT management, if they see one role that came to an end with redundancy and a gap, most will see it is a short career break and someone looking to get back to work.

My feeling is that someone looking at a CV thinking "this person wants to be an assistant IT director here but currently delivers shopping", that would look worse than someone doing nowt.

Might be my perception. I didn't do it and it was not an issue in the end.

 

[Matt Hopkins]

I’m hoping to retire in three years at 55 or at least go part time - the dilemma I have at the moment is whether to merge six pensions into one but two of them are DB’s. Thought a meeting with pension wise last week would provide clarity but it was a waste of time - he kept banging on about minimum retirement age rising to 57 but that won’t apply to me as I’ll be 55 before the change.

Fair enough putting the DC ones into one place, but the DB ones I would think long and hard if you are considering taking the CETV & turning them into a DC pension. To be honest you'd probably be hard pushed to get anyone to recommend you do that anyway or they'll charge you £xxxx to look into it then still say no.

Small pots aren't tested against the lifetime allowance, which means they can reduce the eventual tax charge that may become due.

Isn't the LTA being abolished? Never really looked into it as my pot is nowhere near that

 

[Darlo1973]

A gap is fine.

What I mean is that if people are looking at CVs, given I'm senior IT management, if they see one role that came to an end with redundancy and a gap, most will see it is a short career break and someone looking to get back to work.

My feeling is that someone looking at a CV thinking "this person wants to be an assistant IT director here but currently delivers shopping", that would look worse than someone doing nowt.

Might be my perception. I didn't do it and it was not an issue in the end.

Oh I see what you mean. I suppose that's possible while others may think "here's someone prepared to get stuck in".

On balance, I think I would be tempted to forget about the current delivery job when applying for jobs.

 

[Nookie Bear]

Fair enough putting the DC ones into one place, but the DB ones I would think long and hard if you are considering taking the CETV & turning them into a DC pension. To be honest you'd probably be hard pushed to get anyone to recommend you do that anyway or they'll charge you £xxxx to look into it then still say no.

Isn't the LTA being abolished? Never really looked into it as my pot is nowhere near that

Ah it is , I was just doing a cut and paste Yes I can only dream of having a £1m pension pot - maybe if I worked til 90

 

[dangermows]

Probably written by a load of wankers who have shares in a load of private pension providers. £31k for a single person seems a little excessive.... there'll be plenty not earning that now whilst in full time employment

This.

Not a gloating post I just want to celebrate that I have 12 working days left before i retire.

Some poor sod was stabbed to death recently when they were in their last week.

 

[Swindon On Tour]

I’m hoping to retire in three years at 55 or at least go part time - the dilemma I have at the moment is whether to merge six pensions into one but two of them are DB’s. Thought a meeting with pension wise last week would provide clarity but it was a waste of time - he kept banging on about minimum retirement age rising to 57 but that won’t apply to me as I’ll be 55 before the change.

Leave final salary pensions alone would be my advice.
Amalgamate others into one to avoid charges. You can still take out a tax free sum out of the final salary pensions and still have an income from them until death. Equally a small percentage may move to your Wife if you die.

Pension wise will only give you guidance around the legislation and not sound pension advice.

 

[houghton cut head]

Me missus got put on redundancy notice today like. EVR's get 6 weeks pay for every year and she's done a few so would get a canny wack. Telt her to snap their hands off and go for it cos you might not get that generous an offer again. They only want 300 out of 5.2k. Telling her to start winding her working life down (mid-50's) like me.

thats the most I have seen offered for VR, 1 month per year is good never mind 6 weeks

 

[The Great Soprendo]

Leave final salary pensions alone would be my advice.
Amalgamate others into one to avoid charges. You can still take out a tax free sum out of the final salary pensions and still have an income from them until death. Equally a small percentage may move to your Wife if you die.

Pension wise will only give you guidance around the legislation and not sound pension advice.

I would say the amalgamating of DC pensions is a bit more complex than you suggest. Firstly you need to understand if there are any special benefits attached to them or penalties for transferring. But it's not necessarily cheaper (or better) to have them all in one place, unless that one place charges lower fees (or has better investment options). And sometimes, different pension pots give you access to different types of fund, for instance. One may be low cost with a fairly limited set of options, another might cost more but give you more scope to choose (for instance) adventurous investment options which you might want to do with part of your retirement fund. Transferring a work DC pension to a SIPP will even allow you to buy individual company shares or investment property with your funds. So it might make sense to keep pots separate to spread your bets with a few different options. You can move pots around at any time, including once you're retired (unless you take an annuity), and usually without penalties (though you should check).

However, if you identify a particular pot you have that is clearly poorer value than another one (eg with worse fees, or poor investment options available through it), it makes sense to combine those with a better one you have (or even just open a SIPP separately, which does the same thing effectively). Or at least choose a different investment approach within it, that might have lower fees or better likely returns. Some might want to get advice about that, or just take the plunge themselves if they're confident in the decision.

 

[Joe Baker]

As someone who's worked in estate administration for many years I cannot emphasise enough the need to disregard this advice!

Yes...and no.

Make sure your assets (and liabilities) are fully documented with reference numbers and contact details and your will is up to date and legal so your winding up your estate is straight forward...

..but don't make decisions on what's best for you based on what's easy for someone else.

 

[Swindon On Tour]

I would say the amalgamating of DC pensions is a bit more complex than you suggest. Firstly you need to understand if there are any special benefits attached to them or penalties for transferring. But it's not necessarily cheaper (or better) to have them all in one place, unless that one place charges lower fees (or has better investment options). And sometimes, different pension pots give you access to different types of fund, for instance. One may be low cost with a fairly limited set of options, another might cost more but give you more scope to choose (for instance) adventurous investment options which you might want to do with part of your retirement fund. Transferring a work DC pension to a SIPP will even allow you to buy individual company shares or investment property with your funds. So it might make sense to keep pots separate to spread your bets with a few different options. You can move pots around at any time, including once you're retired (unless you take an annuity), and usually without penalties (though you should check).

However, if you identify a particular pot you have that is clearly poorer value than another one (eg with worse fees, or poor investment options available through it), it makes sense to combine those with a better one you have (or even just open a SIPP separately, which does the same thing effectively). Or at least choose a different investment approach within it, that might have lower fees or better likely returns. Some might want to get advice about that, or just take the plunge themselves if they're confident in the decision.

Sound advice to get a decent pension advisor to look into amalgamating your pensions.
I was fortunate not to incur any transfer out charges and thus avoid annual admin charges in each moving to one.
Wise to check what you are going to be charged for the pension advice.

A decent advisor should be able to show you comparative growth patterns before you make a decision.

Plenty to consider.

 

[SpiritofBurnden]

Ffs amounts reported on this mornings news has shot up
60k for a couples comfy retirement

You must be logged on to see external links

You'd need to make a serious amount of sacrifices to save enough for a comfortable retirement based on those figures.

I'd also question the value of saving every penny when you're younger just to have a more comfortable retirement.

There has to be a balance between living in the moment and planning for the future.

 

[Aldhun]

Leave final salary pensions alone would be my advice.
Amalgamate others into one to avoid charges. You can still take out a tax free sum out of the final salary pensions and still have an income from them until death. Equally a small percentage may move to your Wife if you die.

Pension wise will only give you guidance around the legislation and not sound pension advice.

Good advice

 

[Darlo1973]

Ffs amounts reported on this mornings news has shot up
60k for a couples comfy retirement

You must be logged on to see external links

All depends on what you call "comfy". I would call business class flights and 5 star hotels to be a comfortable retirement

 

[houghton cut head]

You'd need to make a serious amount of sacrifices to save enough for a comfortable retirement based on those figures.

I'd also question the value of saving every penny when you're younger just to have a more comfortable retirement.

There has to be a balance between living in the moment and planning for the future.

100% this Marra. Life is for living, not for doing without when you are in your prime.

I know loads of people who never turn out, don't travel out of the country, never eat out, go to gigs; basically do fuck all other than save their money. What the fuck do they think they will do differently at 65, as by that stage they are that tight with their money they will be terrified of spending it.

 

[Kborom]

Sound advice to get a decent pension advisor to look into amalgamating your pensions.
I was fortunate not to incur any transfer out charges and thus avoid annual admin charges in each moving to one.
Wise to check what you are going to be charged for the pension advice.

A decent advisor should be able to show you comparative growth patterns before you make a decision.

Plenty to consider.

Getting the CETV at least every other year for DB schemes is worthwhile and free, Sister in law's DB from Aviva was to pay out about £3k pa when she retires in 10 years, CETV was £170k!! So it sometimes is worthwhile cashing them in but always with IFA advice.

 

[houghton cut head]

Getting the CETV at least every other year for DB schemes is worthwhile and free, Sister in law's DB from Aviva was to pay out about £3k pa when she retires in 10 years, CETV was £170k!! So it sometimes is worthwhile cashing them in but always with IFA advice.

TV will be nowt like that now Marra post interest rates increase, top of the market was when interest rates were 0.1%. Wished I had been in touch about my pensions then as one of my CETVs has went from £122K to £72K in 18 months. That would still have been a great rate 2 years ago mind

 

[Swindon On Tour]

Getting the CETV at least every other year for DB schemes is worthwhile and free, Sister in law's DB from Aviva was to pay out about £3k pa when she retires in 10 years, CETV was £170k!! So it sometimes is worthwhile cashing them in but always with IFA advice.

Incredible difference.
When making these decisions clearly lots depend on when you plan to retire and life expectation to whether you cash out (transfer) or keep the annual income coming in. Notwithstanding that with final salary schemes you should get an inflationary increase year on year.

I left both of mine, took 25% tax free and just have them under the annual tax allowance limit thus avoiding tax for the next few years.
My other pensions I am in the process of combining them into one. Had decent pension advice and managed mates rates thus lucky.

 

[Kborom]

TV will be nowt like that now Marra post interest rates increase, top of the market was when interest rates were 0.1%. Wished I had been in touch about my pensions then as one of my CETVs has went from £122K to £72K in 18 months. That would still have been a great rate 2 years ago mind

It was only 6 months ago, the point is to get that valuation but also advice.

 

[Darlo1973]

Incredible difference.
When making these decisions clearly lots depend on when you plan to retire and life expectation to whether you cash out (transfer) or keep the annual income coming in. Notwithstanding that with final salary schemes you should get an inflationary increase year on year.

I left both of mine, took 25% tax free and just have them under the annual tax allowance limit thus avoiding tax for the next few years.
My other pensions I am in the process of combining them into one. Had decent pension advice and managed mates rates thus lucky.

Bloody tax avoiders! Always seems interesting that retired people avoiding tax is them being well organised. Working people dodging tax is seen as bad.

I still haven't got my head around the pros and cons of taxing the 25% tax free though I still have a few years to work it out.