Daddies_Sauce
Falmer WSL, not a JCL
- Jun 27, 2008
- 886
Agree, however be mindful and note any setup and ongoing management fees if going for a SIPP.
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[Finance] Early Retirement help
- Thread starter happypig
- Start date
Sounds more like it's a company scheme (final salary ?) than an annuity. Either way, I'd highly recommend at least a chat with an independent adviser - most will offer an initial consultation for free. Rules around pensions, and associated options, are incredibly complex and the wrong decision could be very expensive.
Mancgull
Well-known member
Agree with all this.... it really does depend on your personal circumstances. I'm a financial adviser but not on your doorstep living in Manchester! Happy to have an initial chat by phone if you want.
Weststander
Well-known member
I use local IFA’s where the annual management fee is 1.25% on my SIPP, but I’m sure people can get achieve a lower rate than that.
happypig
Staring at the rude boys
- Thread starter
- #25
I don't intend to get a job unless it's something I fancy doing (might do some charity stuff though) as I won't need to.
Paid the mortgage off last year.
Got a feller coming Friday to explain the options to me and give me the figures but he won't actually give advice at that time (I can use them to advise on investments later if I want).
I was more interested in what others had done, and why.
Wot he said! Happy for you to PM me I've spent a lot of time looking at my pensions options lately, but, as always, please seek your own qualified advice!
** Please be careful, I finally found some very good advice but there are many people looking to help you spend your tax free pot!
Daddies_Sauce
Falmer WSL, not a JCL
- Jun 27, 2008
- 886
Yes, mine is lower than that but it depends on the value of your SIPP.
** Please be careful, I finally found some very good advice but there are many people looking to help you spend your tax free pot! [MENTION=6481]steve[/MENTION] foster may be a very good place to start?
Weststander
Well-known member
Wish I had your £1.3m SIPP pot. #Envious
Live by the sea
Well-known member
- Oct 21, 2016
- 4,718
You shouldn't need to pay any more than 1% or even lower. Plenty of competition out there for IFA's.
Sounds fairly typical - most DB schemes have been capped or stopped completely now. Annuity rates are indeed poor..........I had a (legacy - from a former employer I left a long time ago) capped DB scheme until recently but took it all out and invested in a SIPP instead (annuity rates being low mean the amount the scheme will give you for leaving it are large - I was offered almost 40x the projected annual pension). All of my contributions from later employers are in DC funds so I will have no pension income, but a huge amount of flexibility when it comes to the time to start drawing down. Worth also bearing in mind that anything you take out (whether all of it, or the tax free max etc) forms part of your estate whereas the pension usually gets significantly reduced for dependents.
[MENTION=12697]Steve Foster[/MENTION] might be useful if you're local
Barham's tash
Well-known member
LowKarate
New member
I can’t help you with your question, but let me just congratulate you on your choice not to move to Ipswich.
This is a decision that you will never ever regret.
Weststander
Well-known member
It’s inertia on my part.
Would there be charge or loss to me in any way, by transferring?
- Jul 10, 2003
- 27,792
Two things from my experience.
Sit down and talk all of your pensions and investments through with a good IFA and think through exactly what you want to do. I was lucky as I had a few friends who were IFAs, but take your time and get personal recommendations on choosing one
If you are going from full time to completely retired it can be a shock, particularly if it's a high pressured environment you are coming from. I took early retirement at 50 and within 2 years I was getting bored. I found something I really enjoyed and at 58 I'm still doing it 3-4 days a week, and although I may well do less, I can see me still doing it for another 10 years.
Good luck
Sit down and talk all of your pensions and investments through with a good IFA and think through exactly what you want to do. I was lucky as I had a few friends who were IFAs, but take your time and get personal recommendations on choosing one
If you are going from full time to completely retired it can be a shock, particularly if it's a high pressured environment you are coming from. I took early retirement at 50 and within 2 years I was getting bored. I found something I really enjoyed and at 58 I'm still doing it 3-4 days a week, and although I may well do less, I can see me still doing it for another 10 years.
Good luck
Shouldn't be unless your T&Cs include provision for a transfer charge.................even then that would normally be very modest.
East Staffs Gull
Well-known member
Cashing out part of a final salary pension and then buying an annuity with the cash gets you back to where you started, but almost certainly on a lower monthly pension.
Buying an annuity with a money purchase pot is a different matter. Current annuity rates are as bad as they have ever been. This is a reflection of increased life expectancy and a low return environment. However,if you’re going to live to 90 or 100, buying an annuity might turn out to be the best financial decision you ever made. Conversely, annuities represent poor value for people who don’t have a long retirement.
Buying an annuity with a money purchase pot is a different matter. Current annuity rates are as bad as they have ever been. This is a reflection of increased life expectancy and a low return environment. However,if you’re going to live to 90 or 100, buying an annuity might turn out to be the best financial decision you ever made. Conversely, annuities represent poor value for people who don’t have a long retirement.
May we ask how old you are? And would you be so kind as to tell us?