trooper 940 Posted July 1, 2015 Share Posted July 1, 2015 Just had a letter telling i can get a tax free lump sum from my pension (this is from a company called Portal Finance) i paid into a personal pension years ago until i was made redundant i'd been out of work for a few years when i had a massive stroke in 2004 i'm now 55 i'll be 56 in August & wont be able to work again basically what i'm asking is should investigate it further. Link to comment Share on other sites More sharing options...
Christmas Tree 4679 Posted July 1, 2015 Share Posted July 1, 2015 The laws just changed to allow this to happen. Main thing to consider is the effect it will have on your actual pension when you retire. The more you take out now, the less you'll have monthly when your pension matures. Link to comment Share on other sites More sharing options...
Gemmill 44242 Posted July 1, 2015 Share Posted July 1, 2015 Just had a letter telling i can get a tax free lump sum from my pension (this is from a company called Portal Finance) i paid into a personal pension years ago until i was made redundant i'd been out of work for a few years when i had a massive stroke in 2004 i'm now 55 i'll be 56 in August & wont be able to work again basically what i'm asking is should investigate it further. If it's anything like the projections we've just had on our pension schemes, then the lump sum would work out better for you unless you're going to live til about 120 or something. Mind, that is for someone retiring at 65. Obvious factors to consider for you are: - your age: you've been forced to retire earlier than you would have liked, which means you have to make any lump sum last longer, so in your case not taking a lump sum might be the better option - your spouse: depends on your specific pension, but on mine if you don't take the lump sum and you die, your spouse continues to receive a proportion of your pension. If you take the lump sum and cark it then your spouse would just have what is left of the lump sum to live on - your life expectancy: unpleasant subject, but if your stroke has impacted your life expectancy to the extent that not taking the lump sum would financially disadvantage you (cos you won't be around long enough to get value out of a monthly pension), then maybe the lump sum is best option. Notwithstanding the fact that your missus might live on forever and be left with no cash if you take the lump sum and start making it rain in strip clubs. Bottom line though, talk to a financial adviser as they will be able to give you a much better idea of what the best option for you is, and will explain the tax implications etc. There's a third option as well which is a drawdown where you tale the lump sum in instalments, but again you need to talk to your adviser. The whole thing has been handled terribly by the govt. They pushed the rule changes through and have left people, like yourself, not really knowing what they should do. They've acknowledged that people will be left confused and may take the wrong option but have done next to nowt to address it. Link to comment Share on other sites More sharing options...
trooper 940 Posted July 1, 2015 Author Share Posted July 1, 2015 Thanks Gemm mate Link to comment Share on other sites More sharing options...
The Fish 10681 Posted July 1, 2015 Share Posted July 1, 2015 Link to comment Share on other sites More sharing options...
Park Life 71 Posted July 1, 2015 Share Posted July 1, 2015 Always take the money. Always. Link to comment Share on other sites More sharing options...
Gemmill 44242 Posted July 1, 2015 Share Posted July 1, 2015 Always bet on black. Link to comment Share on other sites More sharing options...
Anorthernsoul 1221 Posted July 1, 2015 Share Posted July 1, 2015 Always bet on black. I read an article a while ago prophesying "Always bet on brown", mind you the article was written by Michael Barrymore. Link to comment Share on other sites More sharing options...
Park Life 71 Posted July 1, 2015 Share Posted July 1, 2015 Always bet on black. End a losing streak with a fresh deck. Link to comment Share on other sites More sharing options...
Park Life 71 Posted July 1, 2015 Share Posted July 1, 2015 (edited) Just had a letter telling i can get a tax free lump sum from my pension (this is from a company called Portal Finance) i paid into a personal pension years ago until i was made redundant i'd been out of work for a few years when i had a massive stroke in 2004 i'm now 55 i'll be 56 in August & wont be able to work again basically what i'm asking is should investigate it further. Put it in here/something like this... And put your feet up.* http://performance.morningstar.com/fund/performance-return.action?t=VGHCX®ion=usa&culture=en-US *Past performance is no guarantee of future revenue or summink. Edited July 1, 2015 by Park Life Link to comment Share on other sites More sharing options...
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