Retirement...when, how old and how much??

[paulchapo]

You’d get the same state pension as long as you registered at the job centre.

The flat basic pension I'd guess if you've been unemployed all your life.

 

[Blue Maverick]

Why you arsed? His finances are none of your business you misery.

Cause he’s my best mate and I’d like the best for him, is that ok? I do worry about him, his body is fucked from work and I’d like him to have a good old age

 

[Tommy_Catons_Perm]

I am mistaken and you are correct

I've searched it and if i understand it correctly, if you die before reaching 75 the drawdown pot can be passed on tax free
If you die after the age of 75 the pot is taxed at the beneficiary's rate

I was under the impression after 75 the pot couldn't be inherited

Even so, it would be very much in the retirees interest to explore all options
The ten year ring-fence could be worth more than a drawdown pot

One thing for certain is that it is a huge decision

A former work colleague has recently retired with a pot of around 400k
He made his decision to retire in Jan so his real option at that time was drawdown as annuity rates were crap

He's taking the 25% tax free in small sums as and when he requires, so the majority of the 400k always stays invested and in theory will grow to cover the tax free withdrawal and agreed drawdown he takes annually

Sounds about right. I knew about the tax aspect after age 75. The pension game is hugely complicated and I have to keep reminding myself of the multitude of rules to hope that I invest and plan wisely.

 

[denislawsbackheel]

The flat basic pension I'd guess if you've been unemployed all your life.

That’s all anyone gets who started work after 2016.

 

[paulchapo]

That’s all anyone gets who started work after 2016.

No, the poor sods who retired before 2016 get the basic state pension. The new state pension is a fair bit more, £805 a month if you have enough qualifying years, less if you don't.

 

[denislawsbackheel]

As long as you register at the job centre you get qualifying years.
There will be no difference in pension now that SERPS has gone.

 

[Hayley Croppers chopper]

It's risk vs reward.

You might feel that pensions aren't safe, but I'd argue they are worth the risk because of the tax incentives behind them.

If you're effectively investing 20%/40% more through a pension and can withdraw it efficiently too, the returns would be incomparable to paying down your mortgage for example. If you have a timescale of 15 years+ a well-invested pension would win every time.

Is the right answer in my opinion.
@A57 the snake , please take financial advice. Paying the mortgage off is not always the best option unless it is on a high interest rate. We are hardwired all our lives to pay our mortgage off but if you can invest the funds instead you might be far better off.

 

[Cricket Blue]

I'm guessing you're not 64.

I wish I was

 

[Xhavenjoe]

I wish I was

Are you a fan of the Beatles?

 

[mackenzie]

I'm 58. Just taken my occupational pension and a lump sum. Still working 2 days a week though (civil service since I was 17).
Best thing I ever did. Yes, my occ pen will be lower when I fully retire but I don't give a shit. I'll be able to live off it then too, easily.