Pension question.
Discussion
I have a number of pensions from DB which I’m not touching to DC, which I have some extremely old ones and ones where on checking the retirement date recently appear to be from 65 not the 55.
However I have funds which are 55 the point at which I could commence drawing a pension.
The question is as I cannot draw earlier from some schemes until that age threshold is met is it possible to transfer the pension pots to said pension fund which has a 55yo date at which I could commence if I so elected?
It has also got me thinking (assuming mgt fees are similar) that any additional pension I pay in currently I should stop and pay into the ones which I can draw from 55 yo.
Thoughts would be useful.
However I have funds which are 55 the point at which I could commence drawing a pension.
The question is as I cannot draw earlier from some schemes until that age threshold is met is it possible to transfer the pension pots to said pension fund which has a 55yo date at which I could commence if I so elected?
It has also got me thinking (assuming mgt fees are similar) that any additional pension I pay in currently I should stop and pay into the ones which I can draw from 55 yo.
Thoughts would be useful.
65 will be the Normal Retirement Date 55 is the age at which you can access.
Most pensions will let you draw from 55, but will significantly reduce the payments as they will be paying out for considerably longer.
As above, use an IFA, or you can request values from the pension provider for retirement at different ages.
Most pensions will let you draw from 55, but will significantly reduce the payments as they will be paying out for considerably longer.
As above, use an IFA, or you can request values from the pension provider for retirement at different ages.
The retirement dates on the DC pension may not be a restriction.
It may simply be a default date that is used for allocating investments appropriately in preparation for that retirement date and for providing retirement projections to you.
Ask the pension providers when you can start drawing down if it's not obvious from the literature.
It may simply be a default date that is used for allocating investments appropriately in preparation for that retirement date and for providing retirement projections to you.
Ask the pension providers when you can start drawing down if it's not obvious from the literature.
If you have old plans check if they have a guaranteed annuity rate, an income for life, these guarantees built in to plan are often double the open market rate.
Also check for other valuable features, such as the funds having a guaranteed rate of growth or minimum growth rate. Some with-profit funds have a minimum 3-5% growth rate which looked low in the eighties but is decent risk free return now.
If you are over the age of 55 they can only penalise you 1% of the value to transfer or move your plans to a modern pension.
Also check for other valuable features, such as the funds having a guaranteed rate of growth or minimum growth rate. Some with-profit funds have a minimum 3-5% growth rate which looked low in the eighties but is decent risk free return now.
If you are over the age of 55 they can only penalise you 1% of the value to transfer or move your plans to a modern pension.
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