UK QUESTION - Have you releasled some of your pension?

Question

PLEASE ONLY REPLY IF YOU HAVE!! - I have just posted this question and mostly had negative comments from people who have never done it. I am considering buying a car next year and I WOULD LIKE TO ENJOY SOME OF MY MONEY WHILE I AM PHYSICALLY ABLE TO. I might not be able to drive when I am a pensioner for one reason or another. Sorry to shout but some people aren't acutally reading my comments.

Answer 1

Yes I did a long time ago when I was desperate for the cash,
I have never regretted it.
As the advert says "Life is for living"!
Now if it will put your mind at rest, just work out how much you think you will need to live on (fairly comfortably) on your retirement .
Then workout how much you will have coming in, including your private pension and any savings you may have.
Now thats the easy bit, what will take a bit of working out is the pension credfit bit, how much you can have saved what your income must be, believe me it is worth the effort.
Despite the old moaners I am doing quite well on OAP plus benifits, very few are actually on the bread line in the UK, if they are then they are not getting the proper advise.
Get your car and enjoy, get an estate then at a future date you can stash your zimmer frame in the back!

Answer 2

Yes.

WARNING = you can do this yourself = it's very easy and there is no reason why you should be ripped off by some 'Financial Consultant' who will be only too happy to charge you £1,000's to stuff you into his favourite (high commission paying) Unit Trust etc.

First I am over 50. If you are under 50 this is not possible.

The Company I worked for would not allow me to Retire before 55. Further they insisted I take all my Benefits at the same time. I did not want to do this because the 'Final Salary' portion of my Pension is worth more the longer I leave it.

So I transferred my Company AVC Fund into a SIPP (Self Invested Pension Plan). I used some of the money to purchase shares (you can buy Index Tracker funds or shares in individual Companies such as Tesco etc) but kept a good portion in cash.

I then informed the Plan Managers that I wished to 'Retire' and claim the 25% Tax Free Lump Sum. I had enough cash in the SIPP to allow this to happen (if there is not enough cash some shares will have to be sold).

I decided not to take an Annuity with the remaining fund - instead it is still invested (I control buying & selling of shares, funds etc.). I can take out a maximium of approx 5% of the Fund value per year as a Pension (which would be taxed) however (so far) I have not needed to do so (note the pension payments are per year - if you decide not to take anything out one year you can not 'carry it forward' & take out extra next year)

I hope the links below help.