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Re: Final Salary Pensions
[Re: came2dance]
#1613996
04/01/2018 13:01
04/01/2018 13:01
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Joined: Dec 2005
Posts: 5,895 2011 and 2015 FCCUK F1 Champ.
bezzer
OP
Forum is my life
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OP
Forum is my life
Joined: Dec 2005
Posts: 5,895
2011 and 2015 FCCUK F1 Champ.
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Depends what you mean by "closed for the last ten years" and what's happening to it.
is it closed because you no longer work there and are no longer paying into it or is it closed because the company wound up or closed the pension fund? And what is/has been happening to it? Is it frozen or is it still growing subject to the performance of the pension fund or frozen subject to a fixed % increase per annum?
Just my immediate thoughts. The company (GEC) was taken over and dissolved, the pension was then closed to new members. It's in a fairly unique position for a Final salary scheme as it has very little deficit. It's funds are still performing well and my final pension is guaranteed to grow by 2.5% pa.
......My Boy...... (PB #7)
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Re: Final Salary Pensions
[Re: bezzer]
#1614010
04/01/2018 15:23
04/01/2018 15:23
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Joined: Dec 2005
Posts: 3,300 Paddock Wood, Kent
adder58
I need some sleep
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I need some sleep
Joined: Dec 2005
Posts: 3,300
Paddock Wood, Kent
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I'll look out for the PM Bezzer. There will be someone here who will be ok for a chat, then help or point you in the right direction. As for helping the kids get a mortgage, I can certainly help with that if you want .... Bank of Mum and Dad have been very helpful to my clients this past year...
was Elec blue + owner now use of a mini cooper S 25y independent Mortgage-Financial adviser
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Re: Final Salary Pensions
[Re: bezzer]
#1614190
08/01/2018 16:40
08/01/2018 16:40
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Joined: Dec 2005
Posts: 7,704 Harpenden
sugerbear
Je suis un Coupé
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Je suis un Coupé
Joined: Dec 2005
Posts: 7,704
Harpenden
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Thanks for the replies guys.
I'll be 53 in a week, so I'm not in a position yet to draw any kind of pension but at 55 I'm looking at semi-retirement.
I'm fortunate that I have a good company pension along with a Stakeholder pension. Both have averaged close on 20% growth pa for the past 10 years so have no issues with keeping the money invested in a pension.
The Final Salary pension can be drawn at 65 without penalty and equates to just over £10k pa. The offer from the company to cash it in is 43.5 what they'll pay me pa. So you can see why the cashing in option is tempting especially as I have 2 other decent pensions as well.
@Serg1 My wife and I already have a flat which we rent out and I'm not interested in purchasing anymore property.
@Adder, I'll drop you a PM when I get home. I had a review a year ago, best advice I had (which you can ignore) is to leave it in a cast iron guaranteed pension scheme until you are ready. There is very little point in moving it until you are ready unless you have a strong feeling that interest rates are going to rise. You sound like you are in a good position as you have an existing pension and you can accept the risk. The IFA will conduct a review which when I looked was around £2000 and then there is a fee on top to transfer. The fact they have given you a factor of 43.5 sounds a no-brainer but you need to clarify if the 10kpa is index linked or fixed and if there is something for your wife if you croak first. My IFA gave a broad hint that pension schemes were offering a higher multiple the closer you were to retiring. Also worth having a think about your risk appetite for that £435,000 when you move it to a SIPP (or whatever).
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Re: Final Salary Pensions
[Re: bezzer]
#1614223
09/01/2018 09:08
09/01/2018 09:08
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Joined: Dec 2005
Posts: 756 West Cheshire
bilbo
Enjoying the ride
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Enjoying the ride
Joined: Dec 2005
Posts: 756
West Cheshire
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I have just done what you’re thinking of doing. In my case it was a no brainier to take the drawdown option, if I croke it my wife and kids will get the full pot tax free instead of 60% of the annuity for as long as my wife is alive.(our mortality ages are not great on both sides of the family) You can still take 25% tax free from the pot the same as an annuity. I don’t know what your figures are compared to mine but when the numbers were crunched if I just take the same amount from the pot as an annuity would’ve given me my pot will have actually grown by the time I’m 84 and that was with less growth than is forecast or there has been historically. I’ve put mine with Prufund for 4 years until I’m 55 which is very low risk. It didn’t cost me anything for the consultation.
Ex LE #41 Ex Sprinty Plus Ex Moon Plus Ex Punto Esseesse Ex ink Plus Ex Panda
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