UK Pensions

Merlin said:
I had a very small personal pension with Standard Life but needed some cash for a project and decided to cash it in during 2012 when I was 61. As it had been running for a short time only, and the value was below a certain figure, I was able to make a larger than normal encashment leaving only a small balance with which to purchase a lifetime annuity.

I asked several companies for annuity quotes based on annual escalations of payment and also level payments (i.e. never increasing) from age 61

By investing the lump sum available at a nominal rate of interest, and taking the option without annual increases, I calculated that I'd have to live a further 31 years until I was 92 years old before the income from an annuity for the entire value of the fund, escalating each year, would have caught up with the option to take the lump sum and the smaller, non-escalating annuity.

As I had no means of guaranteeing that I'd live to age 92 (and beyond in order to receive any profit) the decision was a no-brainer. 22 years left to go before the sums equate with each other, and the money is working harder for me in my bank than in theirs!
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My calculations resulted in me being 85 before I broke even (excluding increases/inflation).

I still think I'm going to beat it.
 
Merlin said:
I had a very small personal pension with Standard Life but needed some cash for a project and decided to cash it in during 2012 when I was 61. As it had been running for a short time only, and the value was below a certain figure, I was able to make a larger than normal encashment leaving only a small balance with which to purchase a lifetime annuity.

I asked several companies for annuity quotes based on annual escalations of payment and also level payments (i.e. never increasing) from age 61

By investing the lump sum available at a nominal rate of interest, and taking the option without annual increases, I calculated that I'd have to live a further 31 years until I was 92 years old before the income from an annuity for the entire value of the fund, escalating each year, would have caught up with the option to take the lump sum and the smaller, non-escalating annuity.

As I had no means of guaranteeing that I'd live to age 92 (and beyond in order to receive any profit) the decision was a no-brainer. 22 years left to go before the sums equate with each other, and the money is working harder for me in my bank than in theirs!
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I took a similar view to the lump sum element of my HSBC bank pension. I thought that with the contacts I had, if I didn't make more than the pension fund I needed shooting.


Bring on the firing squad! A recession in the UK occurred shortly afterwards and I was over invested in property. Within 3 years I think the 6 figure lump sum had gone with half of it being losses on property development. Wrong place, wrong time and I realised being a good property bank manager doesn't necessarily equip you for property development.
 
CO-CO said:
I took a similar view to the lump sum element of my HSBC bank pension. I thought that with the contacts I had, if I didn't make more than the pension fund I needed shooting.


Bring on the firing squad! A recession in the UK occurred shortly afterwards and I was over invested in property. Within 3 years I think the 6 figure lump sum had gone with half of it being losses on property development. Wrong place, wrong time and I realised being a good property bank manager doesn't necessarily equip you for property development.
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A familiar lesson - albeit on a different level - for footballers who think their skills on the field will make them good team managers. Lots of those around!
 
Merlin said:
A familiar lesson - albeit on a different level - for footballers who think their skills on the field will make them good team managers. Lots of those around!
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Merlin, don't misunderstand me; I would have made a GREAT football manager - would have kept Wrexham up :wink:
 
Yorky said:
I thought that you didn't pay any contributions for 18 years whilst you were in the desert?
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I paid Class 3 voluntary contributions.

"Class 3 National Insurance Contributions (NICs) are paid by people who want to avoid, or fill, gaps in their National Insurance record. In order to make sure they receive the full State Pension amount and are entitled to all State Benefits, people make voluntary NICs."
 
I claim mine in December, haven't got a clue what I will get.

My pension forecast says £155.69 a week, I have 38 years contributions but was in a contracted out scheme. I shall wait and see if HSBC play around with my occupational pension.

Rishi will take 40%.........................41% now I expect.
 
CO-CO said:
My pension forecast says £155.69 a week, I have 38 years contributions but was in a contracted out scheme. I shall wait and see if HSBC play around with my occupational...
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What approximately are you looking at @CO-CO ...~B28,000/ month prior to tax ?
 
Coffee said:
What approximately are you looking at @CO-CO ...~B28,000/ month prior to tax ?
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Just over 30,000 Baht/pm gross.......................if the quoted figures are correct .............................. 18,000 Baht net of tax.
 
CO-CO said:
Just over 30,000 Baht/pm gross.......................if the quoted figures are correct .............................. 18,000 Baht net of tax.
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I sure hope that isn't what pensioners really on whether in-country or expat. :-(

(I've heard tales if woe previously...)
 
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