Pension/cash/savings decision
Discussion
Evening all,
A relative has just been offered ~£60k lump sum for their pension rather than the continuing payments (they are in their 80s and in & out of hospital, so the decision seems a no-brainer, it is one of a number of pensions they and their partner receive).
I suppose the ideal situation is to take the cash and put the majority in a locked away account paying reasonable interest, with some ~£10k-ish available to be drawn on if needed.
I plan to go around the Banks this week to see what they offer, also considering advice about the pension bit too - need to check the pension terms out etc
Any of you finance guys think of anything different?
Thanks,
A relative has just been offered ~£60k lump sum for their pension rather than the continuing payments (they are in their 80s and in & out of hospital, so the decision seems a no-brainer, it is one of a number of pensions they and their partner receive).
I suppose the ideal situation is to take the cash and put the majority in a locked away account paying reasonable interest, with some ~£10k-ish available to be drawn on if needed.
I plan to go around the Banks this week to see what they offer, also considering advice about the pension bit too - need to check the pension terms out etc
Any of you finance guys think of anything different?
Thanks,
Without any indication of the pension being paid it's impossible to form any view at all. If it's £5000 pa, obviously £60,000 might be reasonabe but if it's £10,000 it's less so. Also, on what legal basis is the cash being offered? Usually, once in payment pensions cannot be converted to cash. Could be that all the cash would be fully taxable.
More info required.
R
More info required.
R
Thanks for the reply.
It's ~£600/month.
I haven't seen the paperwork yet, its a pension which has been paid into for ~50 years. I need to make sure that it doesn't cover his partner in the event of his death etc as she is still reasonably good healthwise.
Will post more when I've seen the paperwork.
It's ~£600/month.
I haven't seen the paperwork yet, its a pension which has been paid into for ~50 years. I need to make sure that it doesn't cover his partner in the event of his death etc as she is still reasonably good healthwise.
Will post more when I've seen the paperwork.
Roger Dodger said:
Thanks for the reply.
It's ~£600/month.
I haven't seen the paperwork yet, its a pension which has been paid into for ~50 years. I need to make sure that it doesn't cover his partner in the event of his death etc as she is still reasonably good healthwise.
Will post more when I've seen the paperwork.
Is that a flat pension or one with fixed / rpi escalation? That would make a huge difference to the value.It's ~£600/month.
I haven't seen the paperwork yet, its a pension which has been paid into for ~50 years. I need to make sure that it doesn't cover his partner in the event of his death etc as she is still reasonably good healthwise.
Will post more when I've seen the paperwork.

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