General Chat

What I found so hard was that I had hardly any idea what income I would have in retirement - right up to several months after retirement. Still not 100% sure. Why?

First - OAP. You can get forecasts for free. And it is excellent. But read the small print. You could have a lot more, you could have a lot less. Great. I delayed till 67 and a half, because of a forecast that told me that £570 each 4 weeks at 65 would become £801 thirty months later. But I got quite a bit more than £801 and only half of extra was triple lock increases. So good news, but it could have been bad news just as easily. And they will not do any forecasts for you after 65.

Second - Occupational Pension. Started that aged 59 and had built up £25k pot by 65. They were easy to ring up and get an idea, but it was always veiled in ifs and buts. Last forecast (a couple of months before I retired) was £38k pot and £2300 pa pension. I went down all the routes to get an open market option and was very tempted, but decided "better devil you know and trust" :-)

Eventually, after waiting ages beyond my retirement date, I was told that my pension fund was £45k and I was entitled to £3,500pa. There was a big "loyalty bonus" added to my pension pot.

So, with my earlier pensions paying out reliably since age 60, it was all good news. But it was a roller coaster of emotions that I think is not fair on us oldies. Tax is the reason I am still not sure if my income is secure (IRS seem to be a law to themselves and I trust them as much as George Osbourne and Ed Balls)

Kitty, it seems so unfair doesn't it? We got used to the idea of claiming the OAP at 63 then they snatched the rug from under us! I can get mine one week shy of my 65th, but my 5 months younger friend has to wait until she's 66.

For those approaching retirement, the rates are appalling at the moment and have been for several years. OH was fortunate enough to have one final salary scheme which he took at 60. That increase year by year. If I remember correctly, if he had taken a partial lump sum or delayed until 65 he'd have had to wait about 20 years until he'd broken even again. He's waiting for as long as possible before claiming his SIPP.

It's also confusing because there are no firm accurate predictions with the state pension for those who opted out at some point but aren't eligible to claim until after the universal pension is implemented. 2016 may seem ages a way, but isn't if you are trying to plan for then.

I took my works pension in the end. It was £4k - had not worked there very long. I could have got £5k pa had I taken the best market option and that looked v attractive.

But there was no annual increase and, with my works pension, they have already given me 2.5% increase (which is quite good when my work collegues got 1% for fourth year running.

It will take about 10 years before I see a higher pension than the open market one, but I still feel better about the company pension. Also, it gives me an incentive to live many more years.

Kitty. I think that is so ridiculous. My OH retires at 63 next year after expecting to retire at 60 all her working life. So many have had their retirement expectations dashed. Do you think you'll be a qualified cook before retirement :-S

I double and triple checked......................*sighs* :-(

Oh Kitty that's awful.
You have my sympathy. <3

I'm still sulking after finding out I was orn 3hrs and 20 minutes too late to retire at 63............I have to wait until I'm 66 :-| :-| :-|

It all depends how long you are going to live doesn't it? If you can afford it, I would say the bird in the hand is usually worth two in the bush. ;-)

You'd have to do your sums to work out whether the 2 years extra contributions and loss of 2 years pension were worth it. For some a better option might be to take their pension as well as continuing to work for full/part time for a while as well and be far better off in the early part of their retirement.

Never larnt to spell at my alma mater, Dermot. All regious studies and brainwashing ;-)

JJ - are you sure you haven’t imbibed some of the black stuff already today?

I used to have the occasional glass or three as a young leanbh & I noticed that I felt much 'smarter' after the event.

Trouble was that it created havoc with my ability to spell correctly. Have you noticed that too as you scribbled this post?

Sláinte.

That appeared to be headline on Express this morning.

Article was http://www.express.co.uk/news/uk/482629/Delay-retirement-for-two-years-to-boost-pension-pot-by-25-per-cent-experts-reveal

Appears to be that, if you delay your retirement from 67 till 69, you could get a lot more income in retirement. We sort of knew that didn't we? So a non story, I feel.

But reason I raise it was that a lot of companies were offering me 25% extra last year compared to my company pension pot. I thought it was like a pint of Guiness - lots of froth and promise on the top, but a bitter and diappointing taste left in mouth eventually when you looked at small print..

Anybody else tried to port round occupational pensions? What did you find?