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Bigbob
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Right ive hit the big 59 this year and the M.O.D. are wanting my National insurance number etc so when i hit the big 60 next year they want to start paying me my 20 year pension from 35 years ago and im looking for advice on any pit falls 

Take a bigger lump sum than pension 

As 1 i wont be here for ever and the wife will only get 50% of my pension 

As 2 a bigger pension plus my wage now will knock me into a higher tax band ?. 

Any ideas or how i can gain out of it as i've already paid tax etc on this already i don't want to pay more than necessary?  

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I have to start asking questions soon of Forces Pensions - I done 3 years Army, 9 months break then 9 years RAF - So 12 years continuous service (less than a years break) but I can foresee that it won't be that simple!! While in the RAF I got the 4.5 Year retention bonus while I was still in training in the RAF (1.5 years of service) and the 7.5 year retention at 4.5 years of RAF service!

 

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Take proper regulated personalised advice from a professional independent financial advisor. There are many good reasons to do so. Avoid the charlatans who promise you too-good-to-be-true returns in exotic investments all over the world.

Everyone's circumstances are different. 

Pension freedoms mean that you could take charge of the whole lot yourself, and then leave it all to whoever you like in whatever proportion you wish when you no longer require it, rather than being bound by an annuity. 

This has created a feeding frenzy for fraudsters - but ignoring the opportunities can be akin to chucking the baby out with the bathwater. If you are in the South West I can suggest some reputable IFAs by PM. 

 

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15 minutes ago, arjimlad said:

Take proper regulated personalised advice from a professional independent financial advisor. There are many good reasons to do so. Avoid the charlatans who promise you too-good-to-be-true returns in exotic investments all over the world.

Everyone's circumstances are different. 

Pension freedoms mean that you could take charge of the whole lot yourself, and then leave it all to whoever you like in whatever proportion you wish when you no longer require it, rather than being bound by an annuity. 

This has created a feeding frenzy for fraudsters - but ignoring the opportunities can be akin to chucking the baby out with the bathwater. If you are in the South West I can suggest some reputable IFAs by PM. 

 

^^^^^^^^  This this and again this. 

I manage my wife's pension as she looks to retire early. The possibilities are endless and the answer depends as much on you and yours (ambitions, expectations, health current employment) as the money available. You should expect to pay for the best unbiased advice. It is too easy to have a broker on commission (tied broker) to make arrangements on your behalf but it's usually worth getting an independent adviser that can look across your financial position rather than focus on pension. 

https://www.moneysavingexpert.com/savings/best-financial-advisers/

https://www.pensionsadvisoryservice.org.uk/

 

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Definitely definitely take advice, but you really need to shop around as advice varies as does the money you pay for it. Some are just scam merchants and it's hard to choose.

A lot depends of your personal circumstances and only you and your wife can decide that.

Only thing we can do here is give you the benefit of our own experiences. 

I had almost 30 years continuous Army service and was working full time as a HGV driving instructor and company training officer. I had also paid into two pensions with different companies since leaving the Army.

My circumstances changed following a serious operation and I  decided to take the largest lump sum I could take and a reduced pension. Some was tax free some not. I also asked to reduce my hours to three days a week. When my employer said No, I left and took up normal HGV work for four night shifts, reducing to three day shifts after one year.

Unfortunately following a stroke my circumstances changed again and I took the largest lump sum available from the other two pensions on the grounds of "some legal wording I can't remember but the Government don't like you taking more than one pension cash".

Unable to work again I now receive a small monthly pension approximately equivalent to two weeks wages. 

I took advice which was expensive fixed fee at the time but free advice is also available, or a percentage of the gross. Just be ultra careful what you choose. A friend with 22 years in lost most of his to a scam costing him 57% of the gross. I believe it's now regulated to less but they're out there waiting for you!

My independent financial advisor laid out lots of different options available to me and I chose the best for my circumstances. I chose him as he was an ex Parachute Regiment Officer and as all my service was in The Parachute Regiment I figured he'd get me the best deal or die doing it.

One of the things he pointed out was I'd have to live to 112 to draw monthly the amount I could take in cash now after tax.

Be careful out there, its a real minefield and all the mines are booby trapped. 

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6 minutes ago, Centrepin said:

Definitely definitely take advice, but you really need to shop around as advice varies as does the money you pay for it. Some are just scam merchants and it's hard to choose.

A lot depends of your personal circumstances and only you and your wife can decide that.

Only thing we can do here is give you the benefit of our own experiences. 

I had almost 30 years continuous Army service and was working full time as a HGV driving instructor and company training officer. I had also paid into two pensions with different companies since leaving the Army.

My circumstances changed following a serious operation and I  decided to take the largest lump sum I could take and a reduced pension. Some was tax free some not. I also asked to reduce my hours to three days a week. When my employer said No, I left and took up normal HGV work for four night shifts, reducing to three day shifts after one year.

Unfortunately following a stroke my circumstances changed again and I took the largest lump sum available from the other two pensions on the grounds of "some legal wording I can't remember but the Government don't like you taking more than one pension cash".

Unable to work again I now receive a small monthly pension approximately equivalent to two weeks wages. 

I took advice which was expensive fixed fee at the time but free advice is also available, or a percentage of the gross. Just be ultra careful what you choose. A friend with 22 years in lost most of his to a scam costing him 57% of the gross. I believe it's now regulated to less but they're out there waiting for you!

My independent financial advisor laid out lots of different options available to me and I chose the best for my circumstances. I chose him as he was an ex Parachute Regiment Officer and as all my service was in The Parachute Regiment I figured he'd get me the best deal or die doing it.

One of the things he pointed out was I'd have to live to 112 to draw monthly the amount I could take in cash now after tax.

Be careful out there, its a real minefield and all the mines are booby trapped. 

 

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I’ll just echo what others said about getting impartial advice. There is a lifetime withdrawal allowance that can be split across multiple pensions. 
But forget about not paying tax, sorry. All you can do is stay in the lower band and do a withdrawal where 25% is tax free. They will get their share.

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Some good advice here, you must go to a regulated IFA. I DID THIS AND IT MADE A HELL OF A DIFFERENCE TO OUR LIVES AT YOUR AGE. I had a few different schemes which we combined. I was able to make the decision to move to Scotland reduce my bills and work just three days a week. So far we have enough pay the bills and have let the pension accumulate. I also know what my state pension will be.

see if you can get some IFA recommendations.

Good luck

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1 hour ago, Bigbob said:

Right ive hit the big 59 this year and the M.O.D. are wanting my National insurance number etc so when i hit the big 60 next year they want to start paying me my 20 year pension from 35 years ago and im looking for advice on any pit falls 

Take a bigger lump sum than pension 

As 1 i wont be here for ever and the wife will only get 50% of my pension 

As 2 a bigger pension plus my wage now will knock me into a higher tax band ?. 

Any ideas or how i can gain out of it as i've already paid tax etc on this already i don't want to pay more than necessary?  

Why not take the pension and do less work, so you stay under the higher tax band?
 

As you say you won’t live forever. Enjoy your time off while you can. 

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https://register.fca.org.uk/ so you can check whether someone is registered

 

May also be worth searching  https://www.financial-ombudsman.org.uk/data-insight/ombudsman-decisions to see whether they have been involved in any complaints. I am acting against a firm of IFAs who got involved in mis-selling an unregulated collective investment scheme. Fortunately they are still in business & their insurers are waiting at the end of the process with a chequebook. 

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I'm not the guy to offer advice on how to go about this - after all, had it not been for two Territorial Army chaps who I heard talking I would have missed out on one particular pension which is currently giving me in excess of £8k per annum tax free - and you'll understand why I'm not particularly enamoured with the RAF in certain respects. I have been out longer than I was in and if my later experience while working as a civil servant in the MoD is anything to go by pensions will have changed - and it won't be for the better. Consequently, the onl;y tip that I can give is to suggest that you ask your professional advisor to ascertain whether or not the terms and conditions regarding your pension are those which applied while you were earning it still apply because you can be reasonably sure that if it's the current ones it's more than likely that you're going to be worse off. Obviously this does not mean the financial amount - I do not draw the same RAF pension as anyone of the same rank and time served who is going to retire today can expect.

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So much depends on your individual circumstances it is essential to get advice.  The Government Pensions Advise Service may be a good place to start. 

Some pensions (usually older defined benefit or 'final salary' types) are worth keeping in a pension (rather than take the cash) in many circumstances - because the defined benefit value is much better than you could get elsewhere from an annuity type of product.  (They were set up in a different era!).  For example an older defined benefit type might offer quite a good monthly pension, but a low transfer value or cash value.  At 60, you may well be drawing it for enough years to make it worth taking as a pension - especially if it is index linked in some way.

Generally more recent pensions can benefit from taking as much 'cash' as possible, but where to invest that is another important question - to which the answers will depend on your circumstances and tax position.  Making use of tax free allowances and tax free products (that can generate tax free income) such as ISAs may be advisable if you are paying tax, especially higher rate tax.

It is complex, which is why advice is so important.

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As above, use an IFA.

I did 12 and could transfer it into my firefighters pension scheme which got me 9 years of the FFPS, so it was a no brainer at that stage and the FBU pension advice was spot on so I didn`t need to use one myself. Now it`s my wifes turn and we will take a hit on hers as it will be before national retirement, but life work balance is tipping the wrong way and sometimes you have to just say "No" and get on with living and just tighten the belt. Best wishes

Edited by henry d
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I work in security at a university we are the only department that doesn't let us reduce or hours or work from home LOL 

One shift is made up of ex military or police and the view is take the bigger lump sum taking a bigger pension you have to life till your 93 to gain out of it 

and believe me this squad would know how to save a penny 

but i only work 4 on 4 of so only six months of a year so with holidays and sick i dont think i can work less ?.

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For me the most interesting part of pension planning is deciding what you want from your life and how long you want it for. Most people I guess would opt for a more affluent lifestyle whilst they are still fit and active to enjoy it. At the same time you don't want to run out of cash or give more than you might have to for care. Pension planning makes you think about the balance between the here and now and the future which may or may not arrive. It's a fascinating discussion. 

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20 hours ago, Bigbob said:

One shift is made up of ex military or police and the view is take the bigger lump sum taking a bigger pension you have to life till your 93 to gain out of it 

and believe me this squad would know how to save a penny

That is how I eventually decided on mine. At the time most long term over the counter savings accounts were giving 4-5% and the extra lump sum against the extra per month meant I would have to live to over 87 to get the benefit from the extra lump sum and would have to keep it tied up, the slump since then has meant I made an even better choice. It`s swings and roundabouts, but the best advice is to get some.

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I think if i get my MOD pension at 60 i would put in for volunteer redundancy at my work but i would have to wait till im 61 to get the 85 rule , where your age and service equals 85 you can retire 

As ive a new grandson by then i will be able to do stuff with him more than babysitting LOL  and if needed i would do a couple of shifts a week stacking shelves etc Something non stressful and just do a bit and go home 

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17 hours ago, Bigbob said:

I think if i get my MOD pension at 60 i would put in for volunteer redundancy at my work but i would have to wait till im 61 to get the 85 rule , where your age and service equals 85 you can retire 

As ive a new grandson by then i will be able to do stuff with him more than babysitting LOL  and if needed i would do a couple of shifts a week stacking shelves etc Something non stressful and just do a bit and go home 

Would that not be the same as taking voluntary retirement where the redundancy is forfeit for the pension? 

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