hampshireblue
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Paying for state pensions, the NHS, benefits........
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Pension Choice
- Thread starter Fiftyyearsandcounting
- Start date
Gorton_Tubster
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Has anybody got a ballpark figure for how much I wuold get as a lump sum if I withdrew it all when Im 55. Its a bit of an ambiguous question but I have never dealt with pensions before, only paid into them. And when I say ballpark I mean would I get a £5k or £100k? I have no idea. Ive worked for approx 35 years in IT and paid all my contributions.
manclad
Well-Known Member
How much is your pension pot ?Has anybody got a ballpark figure for how much I wuold get as a lump sum if I withdrew it all when Im 55. Its a bit of an ambiguous question but I have never dealt with pensions before, only paid into them. And when I say ballpark I mean would I get a £5k or £100k? I have no idea. Ive worked for approx 35 years in IT and paid all my contributions.
You haven't given much information for such a difficult and ambiguous question.
RobMCFC
Well-Known Member
Everything after the first 25% is taxed so after 35 years of paying in, I reckon you’d be paying a lot in tax by doing that.Has anybody got a ballpark figure for how much I wuold get as a lump sum if I withdrew it all when Im 55. Its a bit of an ambiguous question but I have never dealt with pensions before, only paid into them. And when I say ballpark I mean would I get a £5k or £100k? I have no idea. Ive worked for approx 35 years in IT and paid all my contributions.
Protein Junkie
Well-Known Member
Go for it.A pension company has made an offer to convert one of my annual pension into a one-off lump sum.
This is only a small pension of £900 paid annually (fixed for life) and the offer is for 10x (tax at 20%).
I am 73 and reasonably fit for my age except for Type 2 Diabetes which is under control.
This pension is not regarded as part of my budget as such and is used just to treat myself.
I am single, no dependents, own my home and do not owe a single penny.
There is no negotiation, a one-time take it or leave it deal.
Take it or leave it?
You would wait a long time to get that as an increment.
Gorton_Tubster
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I don't know. I guess I have to find out . Cheers anyway.How much is your pension pot ?
You haven't given much information for such a difficult and ambiguous question.
Tommy_Catons_Perm
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Is it a DB or a DC pension?Has anybody got a ballpark figure for how much I wuold get as a lump sum if I withdrew it all when Im 55. Its a bit of an ambiguous question but I have never dealt with pensions before, only paid into them. And when I say ballpark I mean would I get a £5k or £100k? I have no idea. Ive worked for approx 35 years in IT and paid all my contributions.
If it's a DC pension then it's simply the value of the pension pot. The first 25% is tax free and the rest is taxable at your marginal rate. So expect to pay a fortune in tax if all withdrawn at once. A phased annual drawdown to reduce tax would be sensible.
If it's a DB scheme then it's more complicated. A multitude of factors will affect its cash equivalent transfer value ...eg benefits, caps on index linking and how keen your provider is for you to transfer out. You must obtain financial advice if the CETV is over 30k. The financial advice is not likely to recommend a transfer.
Gorton_Tubster
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That's very useful. Thx v much. Not sure if it is dc or dB though I'm off to find outIs it a DB or a DC pension?
If it's a DC pension then it's simply the value of the pension pot. The first 25% is tax free and the rest is taxable at your marginal rate. So expect to pay a fortune in tax if all withdrawn at once. A phased annual drawdown to reduce tax would be sensible.
If it's a DB scheme then it's more complicated. A multitude of factors will affect its cash equivalent transfer value ...eg benefits, caps on index linking and how keen your provider is for you to transfer out. You must obtain financial advice if the CETV is over 30k. The financial advice is not likely to recommend a transfer.
That's very useful. Thx v much. Not sure if it is dc or dB though I'm off to find out
Mate first question is it Final Sakary ( DB ) , or Money Purchase ( DC ) if this order a statement, find out that and let us know
Tommy_Catons_Perm
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It's quite fundamental.That's very useful. Thx v much. Not sure if it is dc or dB though I'm off to find out
DB schemes are far superior and were common for the older working generation and today's pensioners.
Sadly DB schemes are unaffordable for employers nowadays and today's workers / tomorrow's pensioners must make do with a DC scheme with all the risk and financial management on the individual.