Pensions Uk

[martin88]

I am going to see if I can get my pension cashed in early. It seems it is possible after all. I paid into a pension in the UK for 18 years and don't see much point in leaving it the dwindling funds for the next 20 odd years while I live in Asia. Has anyone else done this ??

Mart

[GuestHouse]

What sort of pension is it? Occupational or Private?

My advice would be if it is a Company Pension get a statement from the providers and find out how much your fund is and what your projected pension is going to be. An important point to note is that if it is a company pension then there is a very good likelihood that you can claim your pension at age 60 (under rules relating equal gender treatment). Company pensions will also benefit from the running costs being paid by the company (not by you).

If its a private scheme then you ought at the very least get in touch with the Pension Provider and find out what funds you are invested in and if they are offering the right return v risk based on your age profile.

I would certainly not close the pension down and take your money out. You are in a fortunate position to have started saving so early, don't throw that away.

From what you tell us you are now in your 40s at the real break or make time of life for pension planning - People at your age who don't have earlier pension savings are going to have to come up with some serious capital/investments/savings to build a pension. Don't throw your advantage away.

Pension savings I myself made over the same period of life are providing real cream on the cake of my pension planning.

You should look to build alternatives in a new basket and keep what you have in the pension basket you already have.

As you are from the UK also take a look at your account with the sate pension scheme. If you have moved away from the UK you can for a very small annual payment secure state pension rights.

Of course if you are thinking there is a wad of money there that you could better use now - Take note of the fact that you are at an age when you can earn an income - Those pension savings are for a time when you can't.

And finally, don't forget - Your pension fund is made up of two sums - your contribution and the government's contribution in the form of tax contributions. If you take your cash out of the pension you get your contributions YOU DO NOT GET the tax man's contribution. You also get hit with hefty penalties. You should expect to have as little as half your fund returned to you.

Keep this in mind - the next twenty years are going to fly by - there after you are going to be in a phase of your life where you cannot reasonably expect to be able to earn a living - You need a pension and if you are living in Thailand take a look at the minimum income requirements to get a visa - All stacked up you need to build more savings not deplete what you already have.

Edited February 15, 2008 by GuestHouse

[martin88]

Wise words!!

Each individual has to weigh up the pros and cons of their current situation and a future projection.

for me I have been let down and misled over the years with endowement policies and my pension is performing at such a rate that I have given up on it. (This is not to say I don't have other investments).

I have been told it can be cashed in now and I would preffer to build businesses right now while I have some energy left and am alive. I don't have a special situation anyone can do this.

Your question - I have 2 pensions, 1 occupational and 1 private. I also heard that the current government tax on UK pensions is 22%.

Better out for me and work it under my control.

[GuestHouse]

Well best of luck with your business - you are going to need it - using your pensions savings for start-up capital.

With a lot of luck you'll do well - with the day to day luck of most people setting up businesses in Thailand you'll be throwing away the security you need when you are old, for a little more time in Thailand now.

But as you say, 'Each individual has to weigh up the pros and cons of their current situation and a future projection'.

But don't forget these wiser words.

'A bird in the hand is worth two in the bush'.

And

'Don't bring money you can't afford to loose to Thailand'

Again, best of luck.

Edited February 16, 2008 by GuestHouse

[mamanoodle]

You have to be over 50, there was talk of raising it to 55, to cash in early. 25%(I think) tax free lump sum and the remainder (compulsory) in an annuity, which pays you a yearly ammount. Any financial adviser, or a google search, will give you more accurate information though.