New Pension rules start this month

[stevewool]

Well it's here, this month, April - things are a changing for the private pension. How this will affect you or me, GOD KNOWS.

There has been that much stuff in the press and on the news too, that it is so confusing. Lots will be after your money - they will say invest here or there and you may get this or that. Yes, great if you do get what they are saying but who knows? All I know is, they will get their charges from you and that is all that matters to many of them.

Myself, I may just read all I can. I don't want to touch it while I am working. I will wait till I am not having a wage, that way I will not be paying tax on what I may receive as long as it's below the tax threshold I think, but I am sure someone will tell me. I hope.

[Harry T]

Well I am NO expert on Pensions, only what I have gleamed from studying on the internet. Up until recently, everyone who had a private pension pot that was building up usually had that pot with an Assurance/Insurance company. They in turn invested your pension pot which generated an annual bonus/income - which usually increased your pot annually - then, when you are at a certain age (usually 55+) that Pot is turned into a lump sum, which buys an Annuity which in turn then provides what we call our Annual Private Pension for the rest of our Life.

So far as I am aware, up until now, all of that was usually done by the Assurance/Insurance company. Mostly you had NO say in who that Annuity was purchased from, nor could you take control of that money (your money) which you had saved for however long.

I will give ONE example, using me as the example; say I reached retirement age last May (I didn't, this is an example) and started receiving my weekly/monthly Pension then I got a Terminal illness and passed away. I had received that private pension for only a few months, after saving for many years (that's it the Pension ends along with my life). The Annuity company have done very well taken YOUR pension pot, and pocketed the monies that YOU paid in.

Now once you reach the age of 55+, YOU can take that money back and use it it as YOU want, YOU can leave it with the Assurance/Insurance companies, or you can use an Investment company to invest in funds that YOU choose, but whatever YOU choose, you can withdraw that money at any time, to use as YOU so wish, which again if you know you have only a limited time left, means that YOUR money comes to YOU, and doesn't stay in the Annuity Companies profits.

So, to summarise, YOU are more or less in control of YOUR money.

In answer to something that Steve mentioned, at the present time, YOU can withdraw up to 25% of your Pension pot Tax free.

[Terpe]

I've been lucky in that all of my pensions were final salary occupational schemes with defined benefits.
No need to worry about annuities.
No need to worry about good provision for my wife.
Well except that she'll lose 1% of her benefit for each year over 10 years that she's younger than me.
So that's just 1% for her.

[stevewool]

The site Pension wise is a very good site to look at and maybe this will help many think of what they may or may not do,

[fred]

Well I am NO expert on Pensions, only what I have gleamed from studying on the internet. Up until recently, everyone who had a private pension pot that was building up usually had that pot with an Assurance/Insurance company. They in turn invested your pension pot which generated an annual bonus/income - which usually increased your pot annually - then, when you are at a certain age (usually 55+) that Pot is turned into a lump sum, which buys an Annuity which in turn then provides what we call our Annual Private Pension for the rest of our Life.

So far as I am aware, up until now, all of that was usually done by the Assurance/Insurance company. Mostly you had NO say in who that Annuity was purchased from, nor could you take control of that money (your money) which you had saved for however long.

I will give ONE example, using me as the example; say I reached retirement age last May (I didn't, this is an example) and started receiving my weekly/monthly Pension then I got a Terminal illness and passed away. I had received that private pension for only a few months, after saving for many years (that's it the Pension ends along with my life). The Annuity company have done very well taken YOUR pension pot, and pocketed the monies that YOU paid in.

Now once you reach the age of 55+, YOU can take that money back and use it it as YOU want, YOU can leave it with the Assurance/Insurance companies, or you can use an Investment company to invest in funds that YOU choose, but whatever YOU choose, you can withdraw that money at any time, to use as YOU so wish, which again if you know you have only a limited time left, means that YOUR money comes to YOU, and doesn't stay in the Annuity Companies profits.

So, to summarise, YOU are more or less in control of YOUR money.

In answer to something that Steve mentioned, at the present time, YOU can withdraw up to 25% of your Pension pot Tax free.


Thanks Harry.
Its nice when things are explained in plain English so that it is easier to understand.

[jonnijon]

With my pensions if I die within 3 years the wife will get the sum paid in without profits.