Pension payment

Alison

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My husband was made redundant in 2000 and we have just received a letter about his old pension scheme saying he has a choice £169 pa after he retires or £5517 lump sum in May with no pension entitlement from the company after retirement, he does have a pension scheme with the company he's at of course.

So what would you go for lump some or the added £169 pa on top of you other pension when you retire?

Alison
 
5517 / 169 = 32.64

So if your husband lives another 33 months (2 years and 9 months) after his retirement, taking the added pension becomes more interesting than the big sum.
 
Raging_Bulls":zfqlz8lx said:
5517 / 169 = 32.64

So if your husband lives another 33 months (2 years and 9 months) after his retirement, taking the added pension becomes more interesting than the big sum.
pa not pm.
 
Raging_Bulls":29atg0ac said:
5517 / 169 = 32.64

So if your husband lives another 33 months (2 years and 9 months) after his retirement, taking the added pension becomes more interesting than the big sum.


Its £169 a year not month. By your working if he lives more than another 33 years then quids in taking the monthly.

Not taking into account inflation or interest. of course.

Perhaps he could use the five grand payout to buy extra years in his current pension would be worth doing that especially if its a final salary scheme.

I'm not a financial advisor or qualified in any way to give advice of any sort.... so go and ask a financial advisor or pensions rep at the current workplace.
 
Or... the annual interest earned on £5.5grand in a high interest ISA will be more than £169/year

Go for the lump and pop in a high interest ISA (its below the threshold limit as well)



G
 
ah yes, I totally missed the "pa" bit.thought it was monthly.

Yea, 33 years is a long time. In that case I'd take the big sum too.
 
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

Alison
 
If the car costs £600 to get through its MOT every time its MOT'd then get a new banger that costs less to MOT :shock:
Put the lump sum in a ISA and leave it unless the Bank of England does plump for negative interest then savings are not really worth the bother.
 
Isaac_AG":2qx7a526 said:
My husband was made redundant in 2000 and we have just received a letter about his old pension scheme saying he has a choice £169 pa after he retires or £5517 lump sum in May with no pension entitlement from the company after retirement, he does have a pension scheme with the company he's at of course.

So what would you go for lump some or the added £169 pa on top of you other pension when you retire?

Alison

It's a no brainer,get yourself a new bike for the summer.He did work to support you didnt he.
 
unkleGsif":nl0u27uq said:
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":nl0u27uq said:
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.
 
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