Retirment approaching

[Catamong]

Thought you had to be over 55 to draw on your pension. A lot of people on here have retired a lot earlier. How come?

 

I also think you are correct, I don't believe you can draw on a Regulated Pension Fund until you are 55, but I think a lot of the posters on here who now claim to be living the good life at the ripe old age of 39, have in fact simply given up work on health or other grounds and are probably claiming disability benefits, or other State handouts..?

 

It all depends on ones lifestyle, I don't want to see my standard of living drop when I retire, so am still putting a big chunk of my salary into Pension funds, it's a no-brainer if you are a higher rate taxpayer as HMRC effectively add 40% to every pound you invest in the plan.

 

I could probably give up full time work tomorrow, but I do actually enjoy my job, (at times), and, like most Company Pension schemes, I would lose around 25% of the monthly payout if I were to take it now, instead of when I turn 65.

 

As for the State Pension, I will get the Princely sum of £155 per week, (flat rate), from my 66th birthday, amazing considering the amount of N.I. I have paid over the last 40 odd years, but what's even more amazing is that's all most people in the UK have to live on when they retire....how do they do it, it wouldn't even buy you 1000 carts..?

 

Cat.

[Davyo]

Thought you had to be over 55 to draw on your pension. A lot of people on here have retired a lot earlier. How come?

Depend on the pension,my NCB pension,a Private pension and part of my Civil service pension i took at 50 when i took partial retirment reducing my hours to 24hrs.I will be taking my full Civil service pen at 55 along with another private pension.My state pension i wont be drawing till 67.Ive been quite fortunate or unfortunate depending on how you look at it.I was injured when i worked in the pits and received a large compensation payment plus a good redundancy package.This left me Morg free in 1992,i invested the rest of my compensation and resisted the temptation to blow it.This has allowed me to retire @ 55 on an annual income that is greater that my current.

[AVB]

 

I also think you are correct, I don't believe you can draw on a Regulated Pension Fund until you are 55, but I think a lot of the posters on here who now claim to be living the good life at the ripe old age of 39, have in fact simply given up work on health or other grounds and are probably claiming disability benefits, or other State handouts..?

 

It all depends on ones lifestyle, I don't want to see my standard of living drop when I retire, so am still putting a big chunk of my salary into Pension funds, it's a no-brainer if you are a higher rate taxpayer as HMRC effectively add 40% to every pound you invest in the plan.

 

I could probably give up full time work tomorrow, but I do actually enjoy my job, (at times), and, like most Company Pension schemes, I would lose around 25% of the monthly payout if I were to take it now, instead of when I turn 65.

 

As for the State Pension, I will get the Princely sum of £155 per week, (flat rate), from my 66th birthday, amazing considering the amount of N.I. I have paid over the last 40 odd years, but what's even more amazing is that's all most people in the UK have to live on when they retire....how do they do it, it wouldn't even buy you 1000 carts..?

 

Cat.

Yes contributing to a pension as a higher rate payer used to make sense but over the years the government have reduced the amount that you get relief on. It's down to £10k now for top earners. Once I have used up my allowance i am going to put mine in ISA's. Yes you don't get tax relief at source but you don't pay interest on it when you take it out.

 

Also don't forget that if the state pension is your only income you get other benefits as well. So nobody lives on £155/week.

[Dave-G]

Yes contributing to a pension as a higher rate payer used to make sense but over the years the government have reduced the amount that you get relief on. It's down to £10k now for top earners. Once I have used up my allowance i am going to put mine in ISA's. Yes you don't get tax relief at source but you don't pay interest on it when you take it out.

 

Also don't forget that if the state pension is your only income you get other benefits as well. So nobody lives on £155/week.

What are those other benefits AVB? I gather there is no help with dental treatment or glasses etc. (I'll be on the basic £155 PW) and have paid off the mortgage.

[Pugs]

 

I also think you are correct, I don't believe you can draw on a Regulated Pension Fund until you are 55, but I think a lot of the posters on here who now claim to be living the good life at the ripe old age of 39, have in fact simply given up work on health or other grounds and are probably claiming disability benefits, or other State handouts..?

 

It all depends on ones lifestyle, I don't want to see my standard of living drop when I retire, so am still putting a big chunk of my salary into Pension funds, it's a no-brainer if you are a higher rate taxpayer as HMRC effectively add 40% to every pound you invest in the plan.

 

I could probably give up full time work tomorrow, but I do actually enjoy my job, (at times), and, like most Company Pension schemes, I would lose around 25% of the monthly payout if I were to take it now, instead of when I turn 65.

 

As for the State Pension, I will get the Princely sum of £155 per week, (flat rate), from my 66th birthday, amazing considering the amount of N.I. I have paid over the last 40 odd years, but what's even more amazing is that's all most people in the UK have to live on when they retire....how do they do it, it wouldn't even buy you 1000 carts..?

 

Cat.

 

Well thats putting everybody into the scrounger bracket isn't it? I'm 50, have paid 35 years (next April) NI contributions, the max that will go to your own state pension plan, any other NI contributions above 35 years goes elsewhere and NOT your own state pension. You've earned that 35 years now and fully qualify for your state pension. I also have a forces pension that will pay out at 60 and have multiple private pensions (as a higher earner) that I can draw on at 55. So for next 5 years, I could pay voluntary Ni contributions or not and not work. Now, the bit to read here is, nowhere have I written about anything about getting any benefits whatsoever from the state, no JSA, no sick benefits...nothing. My wife is younger than me, wants to work (and wants me to take it easier) and can support our lifestyle, which incidently is now mortgage free and no debts apart from the usual bills and so forth.

 

We have a very nice bungalow in the Highlands, have a new campervan and a nice 4x4 - all paid off. I earnt where I am and probably contributed a lot more in the ways of having to serve this ****hole of a country that it's turned into. Now, the forces have been cheated in that, it turns out that veterans have found out that they had been opted out of SERPS and therefore we are discovering that the government and those before have **** on us all and that our forces pension now has to make up the shortfall for our individual state pension. So, as far as i'm concerned i'm not contributng anymore NI to 'them' , if I can help it or just do part-time. It's not my fault that I was also made redundant this year and out-sourced to an Indian company but thats the way UK PLC is going.

 

Being morbid, my family on my fathers side all died before or around 70, I'll be one ****** off cookie if that happens to me and I only get a few years to relax and retire before being buried. I'll have my grave stone marked with 'here's lies one ****** off fella' ;-)

 

In a nutshell, if I can now relax a bit, take it easier and semi-retire (I could do a bit of consultancy couple of days a month but the government feels it fit to sting me for that and HMRC on your back each year to ensure you haven't broken any rules and dont fall into IR35 and then get stung by unforeseen taxes) until hitting 55 I will and thats without any income support or JSA. Thats my idea anyway but it may change, I'm atleast safe until next April, knowing I have clocked up my 35 years NI under my belt - albeit my forces pension now has to make up the shortfall for being automatically contracted out of SERPS and having served and being told that forces pay less NI (did then, not now i believe) because we had our own medical and dental facilities and didn't rely on NHS, however that was a big lie!

 

Some vets may even find out that their state pension is less than somebody who only worked for 20 odd years and have done nothing since, for whatever reasons.

 

Shame on our government and the predecessors

Edited September 20, 2016 by Pugs

[CharlieT]

What are those other benefits AVB? I gather there is no help with dental treatment or glasses etc. (I'll be on the basic £155 PW) and have paid off the mortgage.

 

Yes, I'd love to know too.

 

Many myths seem to be spoken on state pensions. One of our chaps on the farm has just retired, his wife died a couple of years ago and I helped him sort out his entitlements, no extras for him, just his basic pension of a few pence over £155 a week.

[AVB]

 

Yes, I'd love to know too.

 

Many myths seem to be spoken on state pensions. One of our chaps on the farm has just retired, his wife died a couple of years ago and I helped him sort out his entitlements, no extras for him, just his basic pension of a few pence over £155 a week.

I admit to being mistaken. I was aware that my parents (when they were alive) got a pension credit in addition to their state pension. However this only takes it up to the state pension amount. So £155 is the amount you will get (which does beg the question of what's the point of the pension if everybody gets the same, albeit low, amount).

There are other benefits that some people will get but it does depend on circumstances. For example my parents lived in council accommodation. They didn't pay council tax and got big rent support. If I recall their rent was £15/week.

I wouldn't like to live on the basic amount.

[Catamong]

Not everybody will get the paltry £155 per week, I've paid full NI contributions for nearly 44 years but I will get probably no more that the ex forces Guy who's paid only 35 years, many people have not made the necessary contributions so will not get the full amount, particularly women who have given up work to raise a family, sad isn't it..?

 

Cat.

[AVB]

Not everybody will get the paltry £155 per week, I've paid full NI contributions for nearly 44 years but I will get probably no more that the ex forces Guy who's paid only 35 years, many people have not made the necessary contributions so will not get the full amount, particularly women who have given up work to raise a family, sad isn't it..?

 

Cat.

But pension credits make up the difference. So if you don't get £155 because you haven't contributed enough then the difference will be made up with pension credit. That's my understanding.

[Pugs]

Not everybody will get the paltry £155 per week, I've paid full NI contributions for nearly 44 years but I will get probably no more that the ex forces Guy who's paid only 35 years, many people have not made the necessary contributions so will not get the full amount, particularly women who have given up work to raise a family, sad isn't it..?

 

Cat.

 

35 years is what everybody has 'to work' to get full state pension. Any additonal time is not contributing to your state pension, it's for other benefits (dont know what they are)

 

A forces pension has nothing to do with you doing 44 years or me doing 35 years, my forces pension was supposed to have been like any other private pension plan but in their wisdom we have been contracted out and that means we 'earn' less state pension or have to make up the shortfall. I think peeps need to check that their own private pensions have not been contracted out to.

 

As for ex forces, we have been contracted out, so if you had done 45 years and 22 of those years had been in the forces, your state pension would only be 45 minus 22 = 23 years!. The forces pension has to make up the shortfall!! If I wanted to get to 45 years contributions I'd have to make up my additional time done in the forces (i.e. DO another 22 years on top in civvy street) and that isn't right, the forces pension should have been on top of the state pension not subsidising it! So, you are better off than somebody who served 22 years in the forces regarding receiving a FULL state pension, we would have to make up those years...go figure.

Edited September 20, 2016 by Pugs

[oldfeller]

retired first time at 60 and then went back to work luckily getting a job within 3 months and stayed for 5 years , was offered the chance to stay on but the knees are a bit painful, so decided to retire . its a young mans [or woman] job and didnt fancy any more early starts , late finishes and hours waiting about at certain legal establishments for certain clients of such places, and the travelling .

so dont miss it too much . meet up with some of my old cronies for lunch twice a year.

keeping your health and surviving on a pension has been my aim , but it has been a struggle at times, but then when get a call from a farmer who has a crow or pigeon problem all those problems seem to disappear [ until next time]

so if anyone can afford to retire and is fit go for it

sheds are a marvelous refuge.

[AVB]

I think peeps need to check that their own private pensions have not been contracted out to.

 

The majority of private pensions have been 'contracted out'