Re: Taking workplace pension at 55
Originally Posted by Judd
When I got made redundant from my old firm, part of the redundancy package (to save them some money I guess) was to freeze my pension until I was sixty years old. I took a lump sum amounting to 25% of the pot from that pension and have a monthly income from it although I top it up by doing the occasional small job.
I think it will be a good idea to get some of your money out while you can even though it will reduce your monthly pension. A mate of mine has just been diagnosed with cancer at the age of sixty so he may not live long enough to claim any pensions so get it while you can Floydy.
That's what I thought, Judd
Since writing this post a couple of hours ago I've been looking through my recent workplace pension updates and it has pleasantly surprised me the amount I'll be able to claim using this scheme. I've been at my place of work since 2000 and it's a pretty nice pot accumulated.
I have looked briefly each year when they send me an update but suddenly I've realised that I'm almost 55 (!) and eligible for a quarter of it in October.
I pay off my final massive loan instalment next June but after conferring with Mrs. Floydysaurus, we should now be comfortably able to pay it off when I can take my cut from the pension and clear it at last, with a little extra maybe to book a nice holiday for next year.
As you say, Judd none of know how long we are going to be around so it's nice to be able to dive in and take a perk when it comes up
Plus, I'm still working for many years to come yet, so it won't be a great shock to take some money out soon.
My plans after that are to hopefully semi-retire at 60 when I can claim my RAF pension too, if not pack it in altogether. Before that though I intend to get off these bloody night shifts ASAP, and this little bonus will certainly ensure I can do that as early as the end of this year!