Early pension...good idea??

Most of you are aware of my predicament.....Well i am debating cashing in a private pension I had almost forgot about ...It will be 4 years early but i can see it as the only way to bridge the gap and it is a step I am not taking lightly but it maybe the only chance of paying my mortgage and other dues and demands...I know it aint a good idea and a expensive short term solution but it is a lifeline ....A reasonable lump sum which should give me some backup for the unexpected, and monthly payments to help give me a bit of financial stability along with my wife's wages....so what happens when i DO RETIRE (if i get there that is ) well at least i may still have my own house so i will have to cross that bridge later....10 years ago it was plan for the future ...now it is plan for tomorrow ....

Re: Early pension...good idea??

It's tough luck when, after making sensible provision for your old age, you see it all crumble away before your eyes through no fault of your own. I feel so sorry for you Steve. Whatever course of action you take, don't get into the clutches of the moneylenders.

Re: Early pension...good idea??

Hi there, Deliberating our futures is not easy, is it?
I said to my son awhile ago, get your mortgage paid as quickly
as you can for at least you will have a roof over your head if
you are unable to work. So I suppose my philosophy is similar
to what you are trying to decide.
I know a few people who have got their pension early. I think it
seems to depend on whether you are going to get the Government
pension as well? Dont know how old you are so do you have to
be 65 or the new 67 years before you get one, or are you not
getting one at all??
You have to work out how much you have to spend now to get rid
of any debts or payments you need to do and if some money is over
make a good choice as how to invest it. I made a bad choice
when I was 60 with my interests as no one knew about the slump
and I lost thousands on shares I had. Should have put it in the
bank even though the interest wasnt good as least I would have had
all the cash still there. Buy yourself a lottery ticket everyweek as well
laugh, I do, and keep winning unfortunately not big amounts but
its a small gamble worth taking for me.
Hope everything goes well, lets see what others say, but I would
get your mortgage paid off. Good luck.

Re: Early pension...good idea??

I cashed in my small private pension when I was sixty and only lost £40 per month by taking it 5 years early. With interest rates being as they are, your pension pot is likely to make very little more in the next five years anyway, so it could be a worthwhile thing to consider if it would give you financial security now. It may be worth having a chat with a professional however, if you aren't sure or there are large sums involved...

Re: Early pension...good idea??

I have not fallen into the "payday" loan scams ..although I do have a bank loan ..which at the moment it on a minimum payment which will take 80 years to payback ....so far the company has been understanding as it is a BANK ...I do up the minimum payments when ever i can especially when a smaller debt gets paid off and contact them regularly to to keep them informed and so far they seem happy with that....I have other more drastic options to raise money as i have a good equity in my house, but unfortunately not enough to sell and downgrade in something smaller., Or at a push I could approach a equity release Company , something i will not do lightly especially at my age.
I think My retirement age will be 66 although when i took the pension out it had a option off 60 or a 65 year redemption ....The 1 thing in my favour is that my wife is 8 years younger than me which means we may be able to extend the mortgage as the change in retirement has been extended for women ...I think I may just cash it in if the figures i was quoted on the phone are acceptable, as what is the point of struggling now when i can at least get a few years with less worry. I know it wont be a permanent fix but IF I GET A JOB in the meantime then it will be 'Happy Days' ...and who knows what will happen in 8-9 years time when i officially retire ...i may well have popped my clogs by then , especially after my last few years of health issues....which has taught me Life is to short!!!!

Re: Early pension...good idea??

we had a very small private pension cos my husband was misadvised and before he was due to retire they asked if he'd like a larger monthly pension, not a lot larger though or a lump sum and smaller pension. He went for the lump sum as his health had deteriated and we'd no idea how long he'd live, we made the best choice as he died 2 yrs later.

Re: Early pension...good idea??

I am so sorry to hear about you husband hazel....But it does prove a point ...no one knows what is round the corner and life is just one big gamble ...the only person who can answer that question is the man upstairs....

all the best ....

Re: Early pension...good idea??

Well Steve I'm taking early retrement next year so will be taking all bar one of my pensions early apart from the state pension of course which I can't take now until I'm 65. I will be 59 when I retire. I have 5 private pensions in total. One wont pay out until I'm 60 and of the other four 2 are final salary schemes and the other 2 are money purchase which I shall use to buy an annuity with. I think I shall be able to manage OK. My current company scheme allows me to take 25% as a tax free lump sum. I am also fortunate in that we have the services of an IFA here paid for by the company which is a great help as the whole pension thing is a minefield. You may want to take some advice before you take the plunge but I would have thought taking your pension early would work for you. Good luck.

Re: Early pension...good idea??

We took early retirement in our mid 50's. I don't regret it for a moment, but I would say, don't go into it underfinanced! You will still need an income and savings to back things up. How much you need depends on your circumstances, but even with all mortgages, loans etc.. paid off, you will still need to cover all day to day expenses, holidays, contingencies etc..

Re: Early pension...good idea??

I took early retirement at 57 in order to look after my disabled wife and have never regretted it. We occasionally run short of money, but have always managed somehow.
As a short-term relief, have you got any PPI's to claim back. We looked into it on the off-chance and according to the company looking after it for us, we have something like £8500 owing to us. Even with the company's fee, we should still end up with well over £7000 to play with - a very welcome windfall!

Mick