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 Post subject: Re: Pension payment
PostPosted: Thu Feb 28, 2013 3:57 pm 
Karma Queen / Cake Meisterin
Karma Queen / Cake Meisterin
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Joined: Thu Jul 27, 2006 10:02 pm
Posts: 6737
Location: North Yorkshire
was8v wrote:
unkleGsif wrote:
Or... the annual interest earned on £5.5grand in a high interest ISA will be more than £169/year


Best cash ISA rate ATM is 2.8% AER = £154 per year

Isaac_AG wrote:
The thing is we have a car that every MOT costs us at least £600 is rusting and has developed a few probs as well and is due for another MOT this summer and there were issues with the braking last MOT which will need doing this time, so a lump sum for a car would be soo tempting, as living in a small village 7 miles from town and four childre our car is vital, but as mentioned it could go into his work pension, Oh the dilemma


If you need the money badly now....then fair enough..... however it is pension money that he saved at the time for retirement, I would want to tuck it away if I could.

Have you paid off your mortgage? Might be better putting it into the mortgage, most let you pay 10% or so extra off the capital per year. This would reduce your monthly mortgage spend meaning you would have money to increase existing pension / car / bike payments.


We rent, almost bought once then I chickened out just in case Dom lost his Job, he lost it about 6 months later. So I have never had the courage to get a mortgage since.

We'll have to think Long and hard about it.

Alison


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 Post subject: Re: Pension payment
PostPosted: Thu Feb 28, 2013 5:22 pm 
Retro Guru
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Joined: Thu May 08, 2008 4:18 pm
Posts: 2336
was8v wrote:
Best cash ISA rate ATM is 2.8% AER = £154 per year


Who's doing 2.8%? Best I can see (admittedly with only 10 seconds of looking ;) ) is 2.3% (£127 per year).


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 Post subject: Re: Pension payment
PostPosted: Thu Feb 28, 2013 5:36 pm 
eBay Outing Master
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Joined: Sat Nov 21, 2009 3:53 pm
Posts: 8000
you've mentioned the car so i suspect thats where it is going to end up with a lump payout taken

however if you have debt, pay off the higher rate ones as that will put more money back in your pocket per month than any investment


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 Post subject: Re: Pension payment
PostPosted: Thu Feb 28, 2013 6:48 pm 
retrobike rider / Gold Trader
retrobike rider / Gold Trader
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Joined: Sat Aug 15, 2009 4:16 pm
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Location: Perfect Sound Forever
I'd take the lump sum now on the basis you seem to have a genuine need... one that is probably going to be more worthwhile to you now than the extra fourteen or so quid you'll make in retirement.

No guarantee you'll see that £14 either if the markets implode and we all end up back living in caves...

:D


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 Post subject: Re: Pension payment
PostPosted: Thu Feb 28, 2013 9:32 pm 
Retro Guru

Joined: Mon Apr 03, 2006 5:11 pm
Posts: 1103
MikeD wrote:
was8v wrote:
Best cash ISA rate ATM is 2.8% AER = £154 per year


Who's doing 2.8%? Best I can see (admittedly with only 10 seconds of looking ;) ) is 2.3% (£127 per year).


Coventry BS, 60 day notice.

http://www.moneysavingexpert.com/saving ... a#coventry


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 Post subject: Re: Pension payment
PostPosted: Fri Mar 01, 2013 2:02 pm 
Retro Guru
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Cool, ta :)


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 Post subject: Re: Pension payment
PostPosted: Sun Mar 03, 2013 2:36 pm 
retrobike rider
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Joined: Thu Jan 21, 2010 11:13 am
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Location: I don't know, the satnav's bust!
Don't forget the £169 a year pension will be taxed, whereas ISA interest won't.

IMO this makes the lump sum a more attractive option. In addition you've always still got that lump sum base amount to fall back on in an emergency


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