The Retirement Thread
172 watchers
1 Jul
9:40am, 1 Jul 2025
76,067 posts
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Velociraptor
I had a grandfather die 15 months after he retired. I don't see this in any way as an argument against retirement. (He didn't really have any choice about retirement, he was a tradesman employed by the council and you retired and took your work pension at 65 and that was that.)
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1 Jul
9:40am, 1 Jul 2025
11,704 posts
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MazH
LipGloss wrote: I’m also going to assume the couple have to be married and not just live together. thinking about eloping @LipGloss !! |
1 Jul
10:11am, 1 Jul 2025
13,098 posts
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lammo
Nice one Dave. I need to do some research and number crunching on this but i am assuming its generally preferable to take the tax free lump sum from a DB pension, just in case you do die shortly after retiring, does that make sense? It's mrs lammos pension so i don't have all her scheme details, yet. |
1 Jul
10:17am, 1 Jul 2025
53,206 posts
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HappyG(rrr)
lammo wrote: Nice one Dave. I need to do some research and number crunching on this but i am assuming its generally preferable to take the tax free lump sum from a DB pension, just in case you do die shortly after retiring, does that make sense? It's mrs lammos pension so i don't have all her scheme details, yet. I would never take anything out of a DB, only a DC. DB generally are much more generous paying out (defined benefits) than DC? (Caveat, ain't no financial expert!)  G
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1 Jul
10:23am, 1 Jul 2025
2,870 posts
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HappyTimes
For those still working and paying into a workplace pension. Often your pension will be invested using a "lifestyling" approach where as you get closer to the retirement age you selected on entering the scheme your investment moves to 'safer" lower return investments. I watched short piece last night and was saying this is often a poor move now as this was best suited to when most people bought an annuity with their pot. We more often dont now and "you" are potentially really reducing the pot you will have to drawdown on in retirement. Again I am not an IFA so all that jazz. I just thought it's something worth looking at for us still in the work hamster wheel. Seek advice and such. |
1 Jul
10:29am, 1 Jul 2025
38,324 posts
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Dave W
I didn't look into it too much about the spouse/partner thing because it wasn't pertinent. But I seem to recall that it also included some partner arrangements. But again, don't quote me on that. And Happy. I would say that it depends on your attitude to risk. I took maximum tax-free lump sum out of my pension because it was tax free, and it in no way altered what my missus will get from my works pension when I peg it, which was half my initial pension BEFORE lump sum. And if you don't take it, and drop dead soon after, it's gone. If you "expect" to live a long time, then it's probably more beneficial to not take it. But who can say how long they are going to live, eh? Whilst I don't get my state pension for another few years, I also looked at deferring that for a year. I believe when I looked it upped your weekly payments by about 9% if you didn't start taking it until 68 instead of 67. But I did some quick math's, and whilst this didn't take into account pension increases, you would have to live for 18 years to make up for the money that you hadn't had in the year of deferral. Again, only ball park figures, but I'm very much a "bird in the hand" sort of bloke. So no deferral for me. Or the missus. If we manage to get there (fingers crossed). |
1 Jul
10:54am, 1 Jul 2025
9,669 posts
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um
Similarly, I took the max tax free amount from my DB pension on retirement, my logic, - spouse pension on my death unimpacted - drop in pension of about 30% - it gave a fairly big emergency fund, if needed ... - ignoring inflation/interest, it had a 20 year break even point. With interest, and currently low / no increases on the DB, probably 25 years. (assuming Starmer can do beter with the economy than Boris and Liz) - It's still there when I die, for spouse or children But by that logic, should I have cashed the whole lot in and used the total sum as a draw down? Maybe, but I also thought balance and variety/spread was more stable / resilient longer term. |
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1 Jul
10:57am, 1 Jul 2025
13,099 posts
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lammo
Thanks um, that's exactly how i see it currently.
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1 Jul
11:06am, 1 Jul 2025
29,081 posts
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geordiegirl
DB draw downs - I’d say only if you don’t die 😀G, my IFA said in some cases the payout to buy you out can be significant to remove the financial risk of you living a long life. I did get a quote last year which was pants but he said if would be until I am out of the scheme as they don’t want to encourage you to leave. A colleague and friend got 1yr from his pension he died 1yr and 1 week into retirement. So I will be exploring my options. |
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1 Jul
11:16am, 1 Jul 2025
9,670 posts
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um
In hindsight, 8 years on, I have little hopes of my DB improving. I'm very happy with it, my time with HP paid for my house, children etc etc and has left me while not 'rolling in money', able to do most things I choose to (other than a new house from the rightmove thread). But the company is 'shirking' on the pre-1997 elements and consistently gives 0% inrease, citing the 'at company discretion' clause. I suspect at some time in the near future they'll sell/transfer the whole thing to a finance institution so they rid themselves of any risk. So I suspect my 'gold-plated' DB pension will fade a bit over time and the gold bit will turn out to be brass. I also suspect the government will come looking for more tax. So an independent tax free pot looks to be a good safeguard, at least in my view. |
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