retiring early

[stevewool]

well i have started the ball rolling today, been in touch with one of the pension companies and ask them i want to retire early, they was very good and lots of advice came my way but they did tell me to seek other advice too,
Any way i can retire at 55 and take some 25% my pension and the rest taken monthly, i told them i want to go at 60 but they are going to put both plans into a letter and that should take a few weeks,
I know its a long time getting to 60 but time does fly and its good to get everything sorted and to make sure it can be done and done well too before i say tra to one and all

[Terpe]

I hope it works out well for you Steve.

I'm sure you know that there will be an actuarial reduction in pension benefits for early payments.
I have no idea just how much that is these days, it also depends on the scheme rules, but it's something to consider because it will be applied for the life of the pension payments. You'll never get them back.
One important fact Steve is to ask them if early retirement will have any impact on the widows pension payments part of your scheme.

[Michael Parnham]

I found that widows pension part of these schemes are not transferable, mine is only a very tiny amount but my ex will benefit from it.

[Terpe]

I found that widows pension part of these schemes are not transferable, mine is only a very tiny amount but my ex will benefit from it.

I took early payments on one of my pensions and was able to secure no actuarial reduction in the windows pension payments.

Michael, are you sure you are prevented from naming a new beneficiary?
Might be worth enquiring.

[stevewool]

well it seems the lied to me the letter came yesterday and i can retire this coming November or as i said November 2018,
Yes a lot can happen from now till then but its better then i thought, remember my ex had half of the pension pot , but there is a little left in for what i need, i shall take out a lump sum at first and there could be around 100 a month left.
I have another nest egg so i shall be getting in touch with them soon to see what i can do with that also.
Remember every little helps go towards the pot of gold at the end of the rainbow

[stevewool]

I hope it works out well for you Steve.

I'm sure you know that there will be an actuarial reduction in pension benefits for early payments.
I have no idea just how much that is these days, it also depends on the scheme rules, but it's something to consider because it will be applied for the life of the pension payments. You'll never get them back.
One important fact Steve is to ask them if early retirement will have any impact on the widows pension payments part of your scheme.

i will ask about this when i speak to them again , thanks Peter

[Michael Parnham]

Peter, already got it in writing, I think its because my Maritess is so young.

[Terpe]

Peter, already got it in writing, I think its because my Maritess is so young.

Ah yes, I came by that small print too. It went along the lines that if the spouse is more than 10 years younger then there's an actuarial reduction of x% per year for each year younger beyond the standard 10 years.

Still can't understand why you're not allowed to change beneficiary though.
In my pensions it's an included defined benefit.

What happens if the ex pops their clogs? where does the payment then go?

[Michael Parnham]

Ah Well Peter, may never know but I will ask my financial adviser!

[Terpe]

Ah Well Peter, may never know but I will ask my financial adviser!

As always Michael, I'll be interested in the answer.
We all live and learn everday

[stevewool]

so what you are saying if your wife is 10 years and younger they may not get your pension or it will be at reduced rate

[Michael Parnham]

Don't worry Steve, its very unlikely you will be affected, because you have another 5 years worth to go in your pot yet, so don't go retiring any earlier!

[Terpe]

so what you are saying if your wife is 10 years and younger they may not get your pension or it will be at reduced rate

I really depends on the 'small print' of your pension scheme Steve.
On of my pensions did have a restriction clause on a spouse 10 years younger. Just payment reductions of x% per year over the 10. Do mention in mine of losing widows benefit.
Age differenc is quite a common restriction, just to save money. No mention of it in my Civil Service pension though.

Michael's case is a little different in that his pension scheme small print appears to dis-allow and transfer of named beneficiary.
I've no knowledge of this clause so am interested to learn more about that.

All these little forgotten issues can suddenly and unexpectedly appear and bite us in the

[Michael Parnham]

Will let you know Peter!

[Arthur Little]

Steve ... I applied for - and was granted - early retiral many years ago when younger than you are now. Admittedly, I'd been able to do so on "health" grounds [reactive depression] in the wake of two close family bereavements - first, the sudden and unexpected loss of my father ... followed by the death of my first wife who, sadly, succumbed to a particularly virulent type of lymphatic cancer - in fairly rapid succession. Consequently, I managed to get a "good deal" in the form of a fairly substantial lump sum, plus 3 months' pay in lieu of notice and an index-linked pension - which became effective immediately thereafter - from my Local Authority Social Work employers, due to my long service.

As it turned out, I've NEVER regretted this decision; it was one of THE best moves I have ever made ... aside from marrying Myrna, of course.

However, not everyone is fortunate enough to benefit to the extent I did! ... a lot depends on individual circumstances and, naturally, you would need to weigh up the pros & cons very, very carefully before committing yourself.

[andy222]

Nice of you to share that Arthur. I look at it this way steve your 55 right?. I know its a bit cynical but say you have 20 years left to live. You are healthy now. My advice is do it as soon as you can. In 5 years time you might look back and regret not retiring earlier. Just my opinion. If I was in your position and as long as I could live on the income I would go now.

[stevewool]

all my plans are for me to retire at 60, so far so good, so we are sticking with that date, its just knowing what you might get when the time comes to retire so you have a idea of what you can spend