Retirement

[Edinburgh Black Cat]

**This is exactly what I'm doing ,second guessing myself***am i missing out on the big pot?........you and other posters plus 3 financial advisors are all advising 100% to take the Annuity ,but the devil on my shoulder is saying look at the" big pot " .

But you make total sense what youshave posted.
1. The fees for transferring over will probably be around 6k ? Then fees every year of a few grand for whoever is handling it.

2. The way the world is atm ,another big crash or war ( and we've had a few) and the pot diminishes by 30 /40k ,yes we know the golden rule is if you don't touch the pot it will recover but I won't have that luxury as I have to take out every year to live so the pot value will be decreasing every year .

3. Take the annuity and I'll know where I am at for the rest of my life ,wars ,stock market crashes won't affect it.Inflation proof as well.

1) There's no need for you to be paying a few grand for someone handling it post transfer.

2) You can mitigate this risk by having 2 or 3 years of withdrawals in cash equivalents at any given time. In the relatively rare event it dives 30-40%, you've got 2 or 3 years for it to recover.

3) Exactly, that's it. Only you will know how valuable that certainty is for you.

Do you need the money to live on? Are you wanting to leave it to kids? What's your plan B if you choose the CETV and it goes tits up? Are you going to be a bag of nerves thinking about it potentially going tits up?

Those are the sorts of things you need to think about.

Financially, there's not much in it either way. Seems a fair annuity for that balance value.

 

[Matt Hopkins]

Thanks for that ,I am 100% overthinking it ,just out of interest why would firms not touch it and let me transfer it over ?Is it because the value of the Cetv Pot is too small, so risky straight away for them to invest ?.

Amongst other things it'll be seen as not in your interest to give up guaranteed income, which is inflation linked.
Saying that I wonder if from Apr 27 might see the govt encourage the FCA to try and get more people out of a DB and into a DC

 

[Nearly there]

Amongst other things it'll be seen as not in your interest to give up guaranteed income, which is inflation linked.
Saying that I wonder if from Apr 27 might see the govt encourage the FCA to try and get more people out of a DB and into a DC

I've liked it but don't fully understand the last sentence ,
I'm probably having a thick moment ..... but why would the Govt do that ?

 

[elder]

After a bit of back on forth it's been confirmed that I can pay class 2 NI contributions for missing and future years, so i've just paid 2 years worth. absolute no brainer, as it's only around £180 per year.

 

[Matt Hopkins]

I've liked it but don't fully understand the last sentence ,
I'm probably having a thick moment ..... but why would the Govt do that ?

It was more tongue in cheek. From Apr 27 DC pots are in the mix for IHT so say in your case you'd have £214k being taken into consideration, that amount may well push you over the IHT threshold, but if you are still in the DB then there is no pot. A dodgy Govt could encourage FCA to let more people convert from DB to DC in the hope that they get more IHT. As I say just a joke really

 

[Paddy O'Dors]

Summat someone was talking about last neet...

Lad (60yo) has a pension pot with Standard Life for just under £10k. He hasn't contributed into it for 30 years and he's thinking of cashing it in under the small pot scheme. He also has another (with Aviva iirc) which is worth about £60k. Would he be better transferring one of the pots into the other and withdrawing the £10k to get it tax-free?

 

[Matt Hopkins]

Summat someone was talking about last neet...

Lad (60yo) has a pension pot with Standard Life for just under £10k. He hasn't contributed into it for 30 years and he's thinking of cashing it in under the small pot scheme. He also has another (with Aviva iirc) which is worth about £60k. Would he be better transferring one of the pots into the other and withdrawing the £10k to get it tax-free?

Not sure what you're trying to say here. Putting them into one pot would mean less admin work but other than that, disregarding performance, it makes no difference.

 

[Fletch]

anyone used a particular site for an annuity quote ?

 

[elder]

After a bit of back on forth it's been confirmed that I can pay class 2 NI contributions for missing and future years, so i've just paid 2 years worth. absolute no brainer, as it's only around £180 per year.

just spoke with someone from pensions and she's said there's no more class 2 from this tax year, so i'll have to pay class 3. she also said that it might not actually be worth it, as even though i'd be paying class 3 contributions it might not add much to my pension as it's going to depend on the year. so glad i spoke to her and paid class 2 for a few years (will pay six class 2 years in total)

 

[JAZZMANB]

I have a spreadsheet for work where I track how many days on site, sick days, how much I spend on trains etc. I stuck another tab on there counting down to retirement

This morning I noticed that my number of working days (accounting for holidays etc) has just dropped below 2,000. I also have less than 400 Mondays to do. Still a long way (over 9 years), but it feels like a threshold has been crossed.

Each to their own but 9 years off I'd just concentrate on living and enjoying now . You're at a great age .Work hard ,enjoy your time off . It will be nice retired but you'll be 9 years older for a start

 

[a1970man]

anyone used a particular site for an annuity quote ?

For info I just use ChatGPT, it searches the popular sites and gives you and idea of how much your looking at without handing over all your personal details.
Plus you get links to the sites that it used to get the info.

I like the way you can just pile in lots of questions, queries, amounts, stats etc and just get some quick figures back without getting spammed, called and registered as a potential customer.

 

[Paddy O'Dors]

Not sure what you're trying to say here. Putting them into one pot would mean less admin work but other than that, disregarding performance, it makes no difference.

I thought if he withdrew the whole £10k from SL he'd get 25% tax-free and pay tax on the other 75%. If he combined them he would have a pot of £70k and he could take up to 25% of that tax-free (up to about £18k)? Have I got that wrong?

 

[Matt Hopkins]

I thought if he withdrew the whole £10k from SL he'd get 25% tax-free and pay tax on the other 75%. If he combined them he would have a pot of £70k and he could take up to 25% of that tax-free (up to about £18k)? Have I got that wrong?

No that's correct. Unless I'm having a dim moment he's still got exactly the same amount of tax free cash whichever way he does it.
Edit Taking the £10k as a small pot wouldn't trigger the MPAA afaik if that helps

 

[DaveH]

Each to their own but 9 years off I'd just concentrate on living and enjoying now . You're at a great age .Work hard ,enjoy your time off . It will be nice retired but you'll be 9 years older for a start

Please don't get me wrong. I'm not sitting in a tense ball doing fuck all with my life watching the days tick down on a spreadsheet for a decade.

Perhaps it is because I am multi-talented, but I can get on with enjoying my life AND occasionally keep an eye on a pension and retirement tracking spreadsheet.

 

[JAZZMANB]

Please don't get me wrong. I'm not sitting in a tense ball doing fuck all with my life watching the days tick down on a spreadsheet for a decade.

Perhaps it is because I am multi-talented, but I can get on with enjoying my life AND occasionally keep an eye on a pension and retirement tracking spreadsheet.

I worked with a lot of multi talented . Mostly self proclaiming too

 

[i8playoffs]

Regarding the 4% rule. Am I right in thinking that means that your POT should remain as it starts. Surely you want it virtually used up or certainly very much depleted by mid 80's. Only goes to the care home? Any thoughts on what you can take.

 

[elder]

I have a spreadsheet for work where I track how many days on site, sick days, how much I spend on trains etc. I stuck another tab on there counting down to retirement

This morning I noticed that my number of working days (accounting for holidays etc) has just dropped below 2,000. I also have less than 400 Mondays to do. Still a long way (over 9 years), but it feels like a threshold has been crossed.

i've got a spreadsheet that works out how much i get if i'm either made redundant or resign at a certain point in time, or if i were to take long service leave (at half pay) for a period of time. one of those will happen in the next couple of years, so it's nice to know where I'll stand and what option to take.

 

[Fletch]

Regarding the 4% rule. Am I right in thinking that means that your POT should remain as it starts. Surely you want it virtually used up or certainly very much depleted by mid 80's. Only goes to the care home? Any thoughts on what you can take.

dont think so just means you should not run out , nothing is guaranteed though
the 4% you use in year1 you then need to increase each year with inflation (like a pay rise)

 

[Edinburgh Black Cat]

Regarding the 4% rule. Am I right in thinking that means that your POT should remain as it starts. Surely you want it virtually used up or certainly very much depleted by mid 80's. Only goes to the care home? Any thoughts on what you can take.

Ideal scenario is you have enough to live the life you want freely and the pot is still growing. Withdrawing x% and it grows x+1%.

I see what you're saying but the problem with depleting it is you'd be constantly debating whether you're going to run out.

Depends how much is in the pot and how much you need I guess.

 

[archiesdad]

Regarding the 4% rule. Am I right in thinking that means that your POT should remain as it starts. Surely you want it virtually used up or certainly very much depleted by mid 80's. Only goes to the care home? Any thoughts on what you can take.

Thats the general theory. I've started to take close to 5.5%