Retiring

[Newman Noggs]

Well obviously you don’t know my circumstances and I don’t know yours plus we probably want different things. I don’t have a mortgage and have a lifetime guarantee living in a house owned by my sister paying minimal rent. I won’t need a car later in life where I live. I could live without one now in fact. And I am grown up enough to know what I want and the cost of living into my old age. Oh plus two pensions and the state pension. It’s not a ‘nice theory’.

In that case, you should accept that you are in a very privileged and unusual position and stop lecturing people on their "spend, spend, spend" lifestyles.

 

[blue for life]

In that case, you should accept that you are in a very privileged and unusual position and stop lecturing people on their "spend, spend, spend" lifestyles.

I wasn’t lecturing at all. If they have got the money good luck to them. You were making presumptions!

 

[mancityvstoke]

Looking for work in retirement is a lack of either resources or imagination!

If you can afford to put gas in your car, there’s always a new adventure waiting over the next hill.

Petrol

Aluminium

 

[Maccblue]

this is very true.

My biggest pleasures

watching films
Walking
Gardening
Watching city
cycling
Sleeping
Shagging

Cost practically fuck all

The shagging and the football has cost me thousands over the years !!

 

[squirtyflower]

Just wanted to come back to you on your reply, squirty, as I think I have worked out something following Gornik's post which means you might be slightly incorrect (or I may be misunderstanding your terminology).

In the article it mentions how the government calculated everyone's state pension values as at April 2016. I fit almost exactly with the example explained within it, and would have been 29x contributing years at that time, however in my case that seems to have been about 15x full years only, i.e. I was contracted out for the remaining 14. This means my 'starting figure' is around £154 (the basic state pension plus 14 yrs of additional contributions) and with the 5x qualifying years since (come April), will reach full pension - which gov.uk confirm. That's a total of about 20 full years only, nowhere near 35.

That’s right.
But I also think that any years you have added since 2016 will be calculated as full years, which is also mentioned in the article.
At 2016 I had 8 years full and 33 years contracted out. At that time my pension was forecasted to be approximately £142. The forecast now shows it is nearer to £160 as I’ve done another four years or so since then.
I think they look at your whole NI contribution and then see how much of it was a full NI and how much was contracted out.

 

[dickie davies]

Am I correct in thinking the COPE figure is reduced from 2016?
When I looked online at my state pension forecast it showed I qualify for the full amount 175.20, but also there was a COPE figure of £24.
So as we're 5 years on at full contributions (2016-current) the COPE figure has been overridden

 

[Citizen of Legoland]

Am I correct in thinking the COPE figure is reduced from 2016?
When I looked online at my state pension forecast it showed I qualify for the full amount 175.20, but also there was a COPE figure of £24.
So as we're 5 years on at full contributions (2016-current) the COPE figure has been overridden

The more I read up on it, the more I think the COPE figure confuses things. If I am correct (and it would be good to get someone to confirm) this figure was a 2016 calculation of the contracted out contributions you had made to that point in time and either:

a) what that would have been worth if it had been left in the (old additional) state pension.
b) what they estimate your contributions should be worth today in your private fund

I don't know if this figure changes over time (since 2016) to reflect estimated growth in the private fund or not, I'm going to keep checking to see if it does. In any case, those funds are all in your private pension now so it will depend how that performed. It can generally be ignored if you are going to get full state pension I would say.

Here's how I think mine is worked out (*using 20/21 rates)...

a) I know I had (in 2016) 29 out of 30 years for the old basic state pension, £134.25* so makes that £129.78.
b) I don't know the additional pension contributions.
c) This years forecast is £174.99 (21p short) but that includes 4 years at £5.01 (which is 1/35th of the current state pension) so subtracting those means my 2016 starting figure is £154.95, and therefore that means my additional state pension (b) equates to £154.95 - £129.78 = £25.19. My COPE amount is £36.42 which suggests I needed 7 years (@£5 pa) but it's almost overridden in my case in 4.

 

[worsleyweb]

The shagging and the football has cost me thousands over the years !!

Indeed - i could have slept with a high class hooker every night for 30 years and it would have been cheaper.

 

[Kompany Car]

I understand that currently you can have a tax free amount of 25% of your pension pot that can be taken as a lump sum upon retirement. After looking at some other info , notably this

Pension withdrawals: four tax-free ways to access your retirement savings | lovemoney.com

www.lovemoney.com

you can also use the 25% over multiple withdrawals by moving a percentage of the overall pension from the accumulation to income (crystalising that bit of the pension) and then taking 25% of that tax free.

So for example if you had a pot of £500k you could take out £100k leaving the other £400k to grow in the pension. Of the £100k you could then take 25% tax free so £25k leaving the remaining 75% invested. You could do this multiple times until your whole £500k pot has been used up. Considering that the invested pension pot will continue to grow this seems like a fairly tax efficient way of drawing down on a pension pot and avoiding some tax.

Now the question I have is where does this leave you in relation to your lifetime allowance, say if your pension pot was approaching the lifetime limit, (BTW I realise that figure is just north of £1M). Does the lifetime limit only take into account the accumulation part of the pension or would it also include the crystalised (income) part as well ?

 

[Millwallawayveteran1988]

I understand that currently you can have a tax free amount of 25% of your pension pot that can be taken as a lump sum upon retirement. After looking at some other info , notably this

Pension withdrawals: four tax-free ways to access your retirement savings | lovemoney.com

www.lovemoney.com

you can also use the 25% over multiple withdrawals by moving a percentage of the overall pension from the accumulation to income (crystalising that bit of the pension) and then taking 25% of that tax free.

So for example if you had a pot of £500k you could take out £100k leaving the other £400k to grow in the pension. Of the £100k you could then take 25% tax free so £25k leaving the remaining 75% invested. You could do this multiple times until your whole £500k pot has been used up. Considering that the invested pension pot will continue to grow this seems like a fairly tax efficient way of drawing down on a pension pot and avoiding some tax.

Now the question I have is where does this leave you in relation to your lifetime allowance, say if your pension pot was approaching the lifetime limit, (BTW I realise that figure is just north of £1M). Does the lifetime limit only take into account the accumulation part of the pension or would it also include the crystalised (income) part as well ?

Lifetime allowance is tested at every crystallisation event and includes everything. It is also tested at 75 too.

Lifetime allowance for pension savings | MoneyHelper

The lifetime allowance is a limit on how much you can build up in pension benefits without paying tax. Find out the rules and how to protect your pension.

www.pensionsadvisoryservice.org.uk