Pensions

[Odd socks]

Unless you want your loved ones to benefit.

In what way do you mean.

 

[alan__mcfc]

Yep its fucked me over good and proper. It changes on the 6 April 2028 as I reach 55 on the 19 April 2028. Whilst I dont necessarily need it at 55 its would have been nice to have access should I need it or decide Ive had enough of the corporate bullshit.

Some schemes have a protected pension age which will still allow benefits to be taken at age 55. You can ask your provider if it applies to the scheme you are in.

 

[RobMCFC]

Great if you know when your last day is.

I have a close friend who's got a substantial "pot". Chatting to him the other day, his pot is up £300k+ over this year alone. He has drawn down £200k this year so he's still £200k+ up on the year. Of course his tax paid is massive too. Overall he's been living on drawdown for 9 years and he's still got 15% more capital than when he started. The figures are high for him but the principle is still the same, that the older you get, if your FA is doing his job, it's relatively easy to live off the yield and dividends without eating into the capital. Also, the more you have the less risk you need to take to generate a decent income.

I suppose if you have a large amount in your pot, it is harder to spend (nice problem to have, mind).

I’ve sacrificed silly-level pension contributions to live in the here and now, so accept that my pot will be a lot smaller.

Don’t get me wrong, it will probably be larger than the UK average, but my income in retirement will definitely be: state pension + yield + (£5K to £10K).

 

[VOOMER]

In what way do you mean.

The DB (super annuation), usually pay 50% of the annual pension to spouse and that's it.
If you have other DC (defined contributions) schemes you could place them in an open ended scheme and just leave them.
They would continue to grow (in theory), till you pop your clogs.