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Thread: Pension freedom day

  1. #1
    Senior Member Lighttouch's Avatar
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    Pension freedom day


  2. #2
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    Not a good idea this gov con unless you are a millionaire pensioner as the loss of income when you retire if you take out money you will only be left with the state pension as is always with the tories only for the rich.

  3. #3
    Senior Member Lighttouch's Avatar
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    Received my pension illustration from Aviva as I want to withdraw the lot as cash. Couldn't believe that a professional company 'assumed' my policy was like others by offering 25% tax free when it should be 50%. They are revising the figures - hopeless!

  4. #4
    Senior Member AmyS's Avatar
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    Not sure how it works my last salary in 2004 was £30k per annum and they said my pension would be based on final salary - though what that means I've no idea. I also paid into a separate fund - AVC's (Additional Voluntary Contributions). Again not looked into either of them at the moment. I did contact the main pension fund four years ago to see if they'd release any money early and was told no - as I wasn't 50. Now with this new legislation eg releasing funds - it would affect my benefits. Will look into it when I reach 55 (another four years) and see what both pension providers say. Though I think I'll be better off waiting - they said it would pay out from 55 onwards but if I took a lump sum, my benefits would suffer.

  5. #5
    Senior Member Lighttouch's Avatar
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    Amy, you're right. If you take the whole of a pension out as Cash you won't be entitled to any means-tested benefit or housing benefit so that's not an option for you.

    Sounds like you should get a half decent pension based on your salary but they also take into how long you worked for that company and do some wonderful calculations.

    Your AVCs can be taken as cash or converted into years service to boost your pension.

    Sounds like your pension will have added perks i.e. rises each year by RPI or CPI. Death benefits etc You've got what is known as a gold plated pension that isn't available to youngsters today

    When you take your pension you will be able to take 25% tax free - not sure how that affects your mean-tested benefits.

    As I have my own place and I'm not allowed to draw any means-tested benefits - taking this frozen pension as cash won't affect my income.

    When you do officially retire and get your Universal State Pension you won't get the full £145 a week - it'll be more like £90 a week as you took out a private pension which is understandable.

    I'll look into the tax situation from my point of view because the lump sum in one year may push me into a 40% tax band - there's only two certainties in life - taxes and death!!

  6. #6
    Senior Member AmyS's Avatar
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    I had worked for the company (very large organisation) for 13 years and 1 month. We 'employees' voted in 1993 instead of taking a pay rise to have an extra percentage paid by the company directly into our pension from thereon in then if I recall correctly in 1995 - another vote - the company paid our entire pension fund. I started paying AVC's in 1991 and stopped in 2004. The company also 'at that time' had a written contract we MUST retire at 60 - regardless of grade, M.D., Directors, Managers, general office staff etc so the policy was based on my retirement age of 60.

    They contacted my sister and 'made' her take her pension fund early as she'd only worked for them for two years. She received a cheque, which is why I contacted them about four years ago.

    Now 'our' pension age has changed - I think my age bracket - the pension age is 67. Hence I'm more than happy to wait until that time - sheesh my word another 16 years lol. Unless of course things change with PIP and ESA.

  7. #7
    Senior Member Lighttouch's Avatar
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    If the transfer value of your pension is under 30k you can take it as cash.

    As I already take a pension and get by I don't want to take out an 'annuity; that only pays out £1500 a year for life. I'd prefer a lump sum to blow 'responsibly'. My health won't get any better than it is so I want to enjoy myself while I can.

    It's quality of life not quantity of years that count in my view.

  8. #8
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    It seems one rule for one and not for all? as we paid many years into the state pension then why cant we take monies or early retirement due to ill health from state pension.
    We were all hard working people that the gov reminds us and became disabled due to no fault of our own and with the forth comming july 12 million of dwp cuts its very frightning that many may have no income to live on but i have seen that some disabled have already seen there mobility cars taken away due to pip and losing our independence is a scandle.

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