New Pension Rules

[Wattie]

Some very good points made here.
I guess it all comes down to your perception of the future and to a certain degree, trust that the economic picture/legislative picture regarding pension rules etc will not deteriorate.

Personally as outlined I’ll be getting funds out- pronto.
Tax free cash is already on its way.

Returns? 4-6%pa, averaging 9% etc through professionally managed funds.
Dunno why you’d bother- that doesn’t sound like they are managing money very well to me.

Robbing bast4rds, confirms my thinking.
Don’t trust politicians.

Rishi Sunak confirms £100m hit to millions of pension savers
Chancellor revealed the inflation measure on government gilts will change in 2030, which will leave around 6.4m pension savers tens of thousands down

Read in inews: https://apple.news/Az7ZxDhubQEabuKG7bNYVVg

 

[redsonnylee]

Robbing bast4rds, confirms my thinking.
Don’t trust politicians.

Rishi Sunak confirms £100m hit to millions of pension savers
Chancellor revealed the inflation measure on government gilts will change in 2030, which will leave around 6.4m pension savers tens of thousands down

Read in inews: https://apple.news/Az7ZxDhubQEabuKG7bNYVVg

Groan, just read this. I have two final salaries that I funded to the maximum. Agree it’s time to get it all out if I can & be in charge of our own destiny.

 

[allandwf]

are they taking the pi55....

YES!!!!

 

[bigbob]

Groan, just read this. I have two final salaries that I funded to the maximum. Agree it’s time to get it all out if I can & be in charge of our own destiny.

If these are defined benefit schemes it is highly unlikely that you will do better elsewhere due to the buy out rate when you exit. Be careful and get some good advice. Sure you might do better in terms of annual performance but the effective haircut on day one can be hard to recover from and the index linked guarantee even with CPIH is still very valuable. That said you may be keen to take your money out to have the ability to leave your pension in your will at a higher equivalent rate than the spouse's pension or spend down the capital over 25-30 years to zero to materially enhance your retirement income. It's not clear cut though as buy out offers vary.

 

[Rwc13]

If these are defined benefit schemes it is highly unlikely that you will do better elsewhere due to the buy out rate when you exit. Be careful and get some good advice. Sure you might do better in terms of annual performance but the effective haircut on day one can be hard to recover from and the index linked guarantee even with CPIH is still very valuable. That said you may be keen to take your money out to have the ability to leave your pension in your will at a higher equivalent rate than the spouse's pension or spend down the capital over 25-30 years to zero to materially enhance your retirement income. It's not clear cut though as buy out offers vary.

Agree with this, although I was offered an incredibly attractive transfer value a few years ago on my quite generous but closed DB scheme, and since I was facing forced early retirement, I concluded I could do a lot better investing the value offered myself over the longer term than the DB benefits offered. And so it has been so far, I’m achieving much greater annual income and also have significant capital appreciation into the bargain to leave my much younger wife and family. As with all things financial, it’s all about personal circumstances, appetite for risk, and how much you know and are prepared to be involved in managing your assets.

 

[bigbob]

Agree with this, although I was offered an incredibly attractive transfer value a few years ago on my quite generous but closed DB scheme, and since I was facing forced early retirement, I concluded I could do a lot better investing the value offered myself over the longer term than the DB benefits offered. And so it has been so far, I’m achieving much greater annual income and also have significant capital appreciation into the bargain to leave my much younger wife and family. As with all things financial, it’s all about personal circumstances, appetite for risk, and how much you know and are prepared to be involved in managing your assets.

Yep it depends on the buy out rate alongside what you think you can do with the IRR. The thing I find most attractive is the ability in a SIPP to run the capital down to a degree should you choose too. Financial Advisers seem to start from the assumption of capital preservation which is not always applicable IMHO.

 

[redsonnylee]

If these are defined benefit schemes it is highly unlikely that you will do better elsewhere due to the buy out rate when you exit. Be careful and get some good advice. Sure you might do better in terms of annual performance but the effective haircut on day one can be hard to recover from and the index linked guarantee even with CPIH is still very valuable. That said you may be keen to take your money out to have the ability to leave your pension in your will at a higher equivalent rate than the spouse's pension or spend down the capital over 25-30 years to zero to materially enhance your retirement income. It's not clear cut though as buy out offers vary.

Thanks yes I’ll think this through, I’m cheesed of because I have manage to save an additional 400k so spend on luxuries including running the Maserati. It’s so frustrating to think you’ve done your sums then you could be short. My wife works for a charity so the pay and pension is a joke so I’ve used all my allowances to save really hard for both of us.
There’s a neighbour who is a financial consultant so I’ll pop round with a nice bottle of wine and pick his brains on this moving target.

 

[safrane]

Thanks yes I’ll think this through, I’m cheesed of because I have manage to save an additional 400k so spend on luxuries including running the Maserati. It’s so frustrating to think you’ve done your sums then you could be short. My wife works for a charity so the pay and pension is a joke so I’ve used all my allowances to save really hard for both of us.
There’s a neighbour who is a financial consultant so I’ll pop round with a nice bottle of wine and pick his brains on this moving target.

Is he in your Bubble