Early pension access for health reasons.... non starter!

[simon the viking]

to answer some of the comments, I do have a 2017 Propel which I really don't want to destroy, As I have just had it serviced and don't want to ruin the drivetrain, in a perfect world I'd clean it and the chain after every wet ride etc but after a long day at work sometimes you don't always do what you should. If the bike ends up a tatty wreck under current circumstances I couldn't replace it the current version is twice the money and I don't have even half the original price to replace it. Its a nice bike and I want to keep it like that.

The balance transfer idea is normally the route I'd go (or save £150 a month until i could afford it like I did the Propel and the Defy before it) but at the end of the month I don't have 30 quid spare.... we've just spent 800 quid upfront out of the little savings we have to fix a new 5 year mortgage deal at 20 quid more than our current one, because the rate has gone up twice since we asked about that deal..... by December we'd be paying a £100 quid more so 6 grand instead of 2 grand over 5 years, the gas and electric is now 1.75 times what it was a year ago, we are managing but NO SPARE CASH AT ALL. Taking into the current fuel prices as well I have to cycle or I couldn't afford to get to work.

I do know btw that a lot of people are feeling the pinch at the moment obviously and we are lucky that we can afford day to day costs

Just what annoyed me is no matter how bad your health is... (but to be honest mine isn't that bad and I have a bike already so will admit I was trying to game the system a little but do need to cycle as my weight would creep up again) unless you have to retire from your job you cant access a pension.... So as I understand it if I had an accident and needed to adapt my house to suit my medical needs, as long as I could work I couldn't access my pension to do it. (I do realise other benefits and grants might be open to me though)

It just seemed odd that if i'd stayed 17 stone and lost a leg or 2 (costing the NHS a fortune) and lost some of my eyesight so had to give up work I could have the lot tax free!

And lets not forget that whilst I had tax breaks on it, the money is mine and is the result of me starting a private pension aged 21.

So I'll manage with the MTB in the wet ride the Propel when decent weather (which will be for the next two weeks at least as its lovely) then next year buy the 9 speed Gravel and a Dogma or an S Works and give the Propel to my son!

only joking about Dogma and S Works but it will 2 bikes!

 

[SpokeyDokey]

to answer some of the comments, I do have a 2017 Propel which I really don't want to destroy, As I have just had it serviced and don't want to ruin the drivetrain, in a perfect world I'd clean it and the chain after every wet ride etc but after a long day at work sometimes you don't always do what you should. If the bike ends up a tatty wreck under current circumstances I could couldn't replace it the current version is twice the money and I don't have even half the original price to replace it. Its a nice bike and I want to keep it like that.

The balance transfer idea is normally the route I'd go (or save £150 a month until i could afford it like I did the Propel and the Defy before it) but at the end of the month I don't have 30 quid spare.... we've just spent 800 quid upfront out of the little savings we have to fix a new 5 year mortgage deal at 20 quid more than our current one, because the rate has gone up twice since we asked about that deal..... by December we'd be paying a £100 quid more so 5 grand instead of 2000 grand over 5 years, the gas and electric is now 1.75 times what it was a year ago, we are managing but NO SPARE CASH AT ALL. Taking into the current fuel prices as well I have to cycle or I couldn't afford to get to work.

I do know btw that a lot of people are feeling the pinch at the moment obviously and we are lucky that we can afford day to day costs

Just what annoyed me is no matter how bad your health is... (but to be honest mine isn't that bad and I have a bike already so will admit I was trying to game the system a little but do need to cycle as my weight would creep up again) unless you have to retire from your job you cant access a pension.... So as I understand it if I had an accident and needed to adapt my house to suit my medical needs, as long as I could work I couldn't access my pension to do it. (I do realise other benefits and grants might be open to me though)

It just seemed odd that if i'd stayed 17 stone and lost a leg or 2 (costing the NHS a fortune) and lost some of my eyesight so had to give up work I could have the lot tax free!

And lets not forget that whilst I had tax breaks on it, the money is mine and is the result of me starting a private pension aged 21.

So I'll manage with the MTB in the wet ride the Propel when decent weather (which will be for the next two weeks at least as its lovely) then next year buy the 9 speed Gravel and a Dogma or an S Works and give the Propel to my son!

only joking about Dogma and S Works but it will 2 bikes!

Think yourself lucky; by 2028 you won't be able to access your pension pot until you are 57.

 

[simon the viking]

Yes, you are an a***hole to use 2% of your £40000 pension pot on a bike imho. It's meant to top up your state pension to provide a comfortable income in retirement not to provide luxuries when you are still in employment. Sell another asset or upgrade what you've got e.g. slicker tyres or rigid forks.

I didn't say how much the pots are, its a little bit more than that, with no mortgage by then, I wont need to top my state pension that much... Others cash pensions in for cars... no interest in doing that whatsoever.

And I don't intend frittering it away. I will hopefully still have 50k by the time I retire (Still paying in btw)

What asset do I sell, my 200 quid (new price so 60 quid now) laptop? my second hand 200 quid camera or my 5k reliable car and replace it with a duffer at 2k? apart from my propel and the house thats pretty much it

 

[simon the viking]

Think yourself lucky; by 2028 you won't be able to access your pension pot until you are 57.

I am aware of this!

 

[PaulSB]

to answer some of the comments, I do have a 2017 Propel which I really don't want to destroy, As I have just had it serviced and don't want to ruin the drivetrain, in a perfect world I'd clean it and the chain after every wet ride etc but after a long day at work sometimes you don't always do what you should. If the bike ends up a tatty wreck under current circumstances I couldn't replace it the current version is twice the money and I don't have even half the original price to replace it. Its a nice bike and I want to keep it like that.

The balance transfer idea is normally the route I'd go (or save £150 a month until i could afford it like I did the Propel and the Defy before it) but at the end of the month I don't have 30 quid spare.... we've just spent 800 quid upfront out of the little savings we have to fix a new 5 year mortgage deal at 20 quid more than our current one, because the rate has gone up twice since we asked about that deal..... by December we'd be paying a £100 quid more so 6 grand instead of 2 grand over 5 years, the gas and electric is now 1.75 times what it was a year ago, we are managing but NO SPARE CASH AT ALL. Taking into the current fuel prices as well I have to cycle or I couldn't afford to get to work.

I do know btw that a lot of people are feeling the pinch at the moment obviously and we are lucky that we can afford day to day costs

Just what annoyed me is no matter how bad your health is... (but to be honest mine isn't that bad and I have a bike already so will admit I was trying to game the system a little but do need to cycle as my weight would creep up again) unless you have to retire from your job you cant access a pension.... So as I understand it if I had an accident and needed to adapt my house to suit my medical needs, as long as I could work I couldn't access my pension to do it. (I do realise other benefits and grants might be open to me though)

It just seemed odd that if i'd stayed 17 stone and lost a leg or 2 (costing the NHS a fortune) and lost some of my eyesight so had to give up work I could have the lot tax free!

And lets not forget that whilst I had tax breaks on it, the money is mine and is the result of me starting a private pension aged 21.

So I'll manage with the MTB in the wet ride the Propel when decent weather (which will be for the next two weeks at least as its lovely) then next year buy the 9 speed Gravel and a Dogma or an S Works and give the Propel to my son!

only joking about Dogma and S Works but it will 2 bikes!

You asked before if we thought you're being an a******* well I don't think that but I do think you're taking the piss. You can't afford a new bike, not prepared to use the one you have available, two minutes with a bucket of water, an old cloth and a brush would solve your concerns, your health isn't as big an issue as you initially made out and you admit to attempting to play the system and want some sort of sympathy vote.

I really don't understand why people set themselves up for criticism by declaring this sort of thing on the web. Quite beyond me. If your outlook on life allows you to try and play the system go ahead but probably better not to whinge about how unfair the system is. You expected sympathy?

I'm epileptic. In July 2011 a fit stopped me driving for 12 months. I commuted 36 miles a day by bike/train leaving home at 6.30am and getting back around 8.00pm. I had to use what was at the time my best bike. Yep a chunk of paint got chipped off the top tube but that apart no issues, once I was driving again she did another 4-5 years as my favourite summer ride followed by two years as a winter bike. I've experienced the issue, understand the dilemma and in my case took it on the chin and got on with life.

Apologies if this upsets you but to be frank your sort of attitude infuriates me.

 

[keithmac]

I can't understand why people buy bikes they are afraid to ride, I see it with motorcycles as well, probably 200 miles a year on some that come through our workshops.

Get out on the Carbon and enjoy it imho.

I'm still trying to justify buying a new Atmos Soundbar (probably 2k's worth) for winter film nights at home. Everyone at work has the same view, you're a long time dead so you may as well enjoy it while you're here!.

 

[simon the viking]

You asked before if we thought you're being an a******* well I don't think that but I do think you're taking the piss. You can't afford a new bike, not prepared to use the one you have available, two minutes with a bucket of water, an old cloth and a brush would solve your concerns, your health isn't as big an issue as you initially made out and you admit to attempting to play the system and want some sort of sympathy vote.

I really don't understand why people set themselves up for criticism by declaring this sort of thing on the web. Quite beyond me. If your outlook on life allows you to try and play the system go ahead but probably better not to whinge about how unfair the system is. You expected sympathy?

I'm epileptic. In July 2011 a fit stopped me driving for 12 months. I commuted 36 miles a day by bike/train leaving home at 6.30am and getting back around 8.00pm. I had to use what was at the time my best bike. Yep a chunk of paint got chipped off the top tube but that apart no issues, once I was driving again she did another 4-5 years as my favourite summer ride followed by two years as a winter bike. I've experienced the issue, understand the dilemma and in my case took it on the chin and got on with life.

Apologies if this upsets you but to be frank your sort of attitude infuriates me.

ouch! Roasted...

my health isnt as big an issue as it could be... and i know people who are worse off than me, but if id sat on my a**e and done nothing i would be a massive burden on society... and there are far more 'entitled' people than me... i work in retail and see it everyday ...

 

[teeonethousand]

I have just bought second hand another, newer, more features, lighter bike to replace the trusty old MTB …..I cycle for health so had a bit of a battle with myself over whether the bike weight helps or hinders things. I suspect it helps as you are working harder per mile but I bought mine anyway because, well, I wanted it. I will look after it but will certainly use it without thought to any resale value.

In any case my understanding is that the weight battle takes place in the kitchen..sadly.

 

[simon the viking]

I have just bought second hand another, newer, more features, lighter bike to replace the trusty old MTB …..I cycle for health so had a bit of a battle with myself over whether the bike weight helps or hinders things. I suspect it helps as you are working harder per mile but I bought mine anyway because, well, I wanted it. I will look after it but will certainly use it without thought to any resale value.

In any case my understanding is that the weight battle takes place in the kitchen..sadly.

With me a lighter bike for unpleasent days would help as sometimes you just dont feel like hauling a heavy mtb when its raining and use the car... if the bike was easier to use i wouldnt give up so easily!

 

[bikingdad90]

Think yourself lucky; by 2028 you won't be able to access your pension pot until you are 57.

Who knows what it will be for me! My state retirement age is currently 68.

 

[jowwy]

ouch! Roasted...

my health isnt as big an issue as it could be... and i know people who are worse off than me, but if id sat on my a**e and done nothing i would be a massive burden on society... and there are far more 'entitled' people than me... i work in retail and see it everyday ...

But are those entitled people you speak f, trying to play the pensions system, just to get a new bike..?
im guessing No

 

[simon the viking]

But are those entitled people you speak f, trying to play the pensions system, just to get a new bike..?
im guessing No

No but they shouted and screamed in the face of what the government jokingly called key workers (aka Minimum wage covid fodder workers) because we hadn't got grey fence paint so they could do their garden whilst they were being paid 80% of their salary for 3 months because it was to dangerous for them to go to work but not shop apparently. But thats for a whole new thread and wiil probably get this one locked.

If you aint worked in retail you don't know entitled... retail is where the 'I want to speak to the manager - Karen' phrase came from

All i was getting at in the first post is the pension access is Black and white no appeal system at all and if i was unhealthy I could access the lot take early retirement and get benefits...

Wow what a thread to start as my first in over six months lol

 

[midlife]

As aside I thought to take the pension pot tax free you had to have less than a year to live?

 

[simon the viking]

As aside I thought to take the pension pot tax free you had to have less than a year to live?

I think you are allowed 25% a year tax free after 55 (To be 57 later in decade)

 

[Bonefish Blues]

I think you are allowed 25% a year tax free after 55 (To be 57 later in decade)

25% of the pension pot is tax free, period, however you may be able to take more than 25% and not pay tax if you're below threshold. Tax planning ftw