Join for free
Reply
Page 1 of 7 1 2 3 > Last »
Floydy's Avatar
Floydy
Chatterbox
Floydy is offline
East Yorkshire
Joined: Oct 2015
Posts: 12,566
Floydy is male  Floydy has posted at least 25 times and has been a member for 3 months or more 
 
21-01-2019, 05:46 PM
1

Taking workplace pension at 55

There may not be too many people on the forum who this concerns as I realise many of you are much older, but you may be aware that people who reach the age of 55 are able to withdraw 25% of their workplace pension fund tax free.

I will reach that age in October this year and am about to look into this. Has anyone else done the same?
Reply With Quote
Judd's Avatar
Judd
Chatterbox
Judd is offline
West Riding of Yorkshire
Joined: Oct 2015
Posts: 8,896
Judd is male  Judd has posted at least 25 times and has been a member for 3 months or more 
 
21-01-2019, 06:49 PM
2

Re: Taking workplace pension at 55

Originally Posted by Floydy ->
There may not be too many people on the forum who this concerns as I realise many of you are much older, but you may be aware that people who reach the age of 55 are able to withdraw 25% of their workplace pension fund tax free.

I will reach that age in October this year and am about to look into this. Has anyone else done the same?
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.
Reply With Quote
Realist
Chatterbox
Realist is offline
UK
Joined: Mar 2015
Posts: 8,784
Realist is male  Realist has posted at least 25 times and has been a member for 3 months or more 
 
21-01-2019, 06:54 PM
3

Re: Taking workplace pension at 55

Yep just done it.

Choice depends on your personal circumstances. I took the max lump sum because it is tax free and can be put into savings/investments to earn you money. Without the lump sum you may risk having that money taxed.
Reply With Quote
Bratti's Avatar
Bratti
Senior Member
Bratti is online now
Canada
Joined: Mar 2018
Posts: 3,586
Bratti is female  Bratti has posted at least 25 times and has been a member for 3 months or more 
 
21-01-2019, 07:06 PM
4

Re: Taking workplace pension at 55

Congratulations Floydy. Thatís great. Here things are a bit different but my husband works shift work like you do and he canít wait to retire. Heís younger than you but at 50 he was completely thrilled. He has the option to have early retirement however if he stays he gets much more.
.
My husband can tell you how many days and hours he has left before he retires and I really feel for him. Doing 12 hour nights is rough

Good news for you
Reply With Quote
Floydy's Avatar
Floydy
Chatterbox
Floydy is offline
East Yorkshire
Joined: Oct 2015
Posts: 12,566
Floydy is male  Floydy has posted at least 25 times and has been a member for 3 months or more 
 
21-01-2019, 09:10 PM
5

Re: Taking workplace pension at 55

Originally Posted by Realist ->
Yep just done it.

Choice depends on your personal circumstances. I took the max lump sum because it is tax free and can be put into savings/investments to earn you money. Without the lump sum you may risk having that money taxed.
Didn't you retire at 48?
Reply With Quote
Floydy's Avatar
Floydy
Chatterbox
Floydy is offline
East Yorkshire
Joined: Oct 2015
Posts: 12,566
Floydy is male  Floydy has posted at least 25 times and has been a member for 3 months or more 
 
21-01-2019, 09:19 PM
6

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!
Reply With Quote
Realist
Chatterbox
Realist is offline
UK
Joined: Mar 2015
Posts: 8,784
Realist is male  Realist has posted at least 25 times and has been a member for 3 months or more 
 
21-01-2019, 11:10 PM
7

Re: Taking workplace pension at 55

Originally Posted by Floydy ->
Didn't you retire at 48?
Yep

Are you struggling to understand the difference between giving up work and taking a pension?
Reply With Quote
Mups's Avatar
Mups
Chatterbox
Mups is offline
Northamptonshire
Joined: Jun 2013
Posts: 37,916
Mups is female  Mups has posted at least 25 times and has been a member for 3 months or more 
 
21-01-2019, 11:23 PM
8

Re: Taking workplace pension at 55

Originally Posted by Realist ->
Yep

Are you struggling to understand the difference between giving up work and taking a pension?


I think that was sarcastic and uncalled for!
Reply With Quote
Bratti's Avatar
Bratti
Senior Member
Bratti is online now
Canada
Joined: Mar 2018
Posts: 3,586
Bratti is female  Bratti has posted at least 25 times and has been a member for 3 months or more 
 
21-01-2019, 11:25 PM
9

Re: Taking workplace pension at 55

I thought so also.
Reply With Quote
Mups's Avatar
Mups
Chatterbox
Mups is offline
Northamptonshire
Joined: Jun 2013
Posts: 37,916
Mups is female  Mups has posted at least 25 times and has been a member for 3 months or more 
 
21-01-2019, 11:32 PM
10

Re: Taking workplace pension at 55

Originally Posted by Bratti ->
I thought so also.

Glad it's not just me, Bratti.

No need for it at all.
Reply With Quote
Reply
Page 1 of 7 1 2 3 > Last »

Thread Tools


© Copyright 2009, Over50sForum   Contact Us | Over 50s Forum! | Archive | Privacy Statement | Terms of Use | Top

Powered by vBulletin Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.