took the leap

[gbb]

well, at 64, scheduled to retire at 66, we have calculated we can survive ok ish on state pension plus her pension (combined should give us circa £450 a week) plus a small amount from my current employers pension.

I have an old works pension that last year had £55k in it, no contributions since I left, it grows and shrinks with the vagaries of pensions performance.
Last year, £55k
This year £44k, this is of course a very small amount in pensions terms. and a big drop in the pot.
Just looked at it 3 months later...£41k
Been considering drawdown, advise from my wife's former pension manager and informal advice elsewhere seems to be in favour of drawdown, and my logic is....
A poorly performing plan, shrinking by the day, losing money hand over fist.
The next year seems extraordinarily uncertain for the financial markets, lots of opinion there will be a recession.
Convert 25% to cash and at least start earning a bit of welcome interest on it.
I'm 64, I don't see markets recovering anytime soon, certainly not going to recover my losses in the next 2 years by staying in so might as well bail out now.
That £44k gave me a less than £40 week pension, its already dropped significantly in 3 months and will probably continue to do so.
We don't have much outgoings, no mortgage or rent, car is paid for.

Going for it...opinions ?

 

[jowwy]

well, at 64, scheduled to retire at 66, we have calculated we can survive ok ish on state pension plus her pension (combined should give us circa £450 a week) plus a small amount from my current employers pension.

I have an old works pension that last year had £55k in it, no contributions since I left, it grows and shrinks with the vagaries of pensions performance.
Last year, £55k
This year £44k, this is of course a very small amount in pensions terms. and a big drop in the pot.
Just looked at it 3 months later...£41k
Been considering drawdown, advise from my wife's former pension manager and informal advice elsewhere seems to be in favour of drawdown, and my logic is....
A poorly performing plan, shrinking by the day, losing money hand over fist.
The next year seems extraordinarily uncertain for the financial markets, lots of opinion there will be a recession.
Convert 25% to cash and at least start earning a bit of welcome interest on it.
I'm 64, I don't see markets recovering anytime soon, certainly not going to recover my losses in the next 2 years by staying in so might as well bail out now.
That £44k gave me a less than £40 week pension, its already dropped significantly in 3 months and will probably continue to do so.
We don't have much outgoings, no mortgage or rent, car is paid for.

Going for it...opinions ?

going for what??

 

[cougie uk]

If my sums are right then you'll be on 40k between you before tax.

Do you know what you spend now ?

And yes the car may be paid for but you need to plan for the replacement etc...

 

[jowwy]

If my sums are right then you'll be on 40k between you before tax.

Do you know what you spend now ?

And yes the car may be paid for but you need to plan for the replacement etc...

450 a week x 52 = £23,400 tax free or around 29k a year before tax

450 x 4.2 = £1890 a month

plus 40 x 52 = £2080 a year from the small pension

 

[gbb]

going for what??

Drawdown. It will reduce an already hugely reducing , albeit modest pension pot.
Take the money and run basically before it collapses (potentially everything is a gamble, I gambled on things going well 3 years ago and stuck with it for longer term, I've since lost the gamble and lost around 30% of my original pot so time to bail out.
It may turn out the wrong decision but as we all know, you make a judgement and hope it turns out to be the right one.

 

[gbb]

450 a week x 52 = £23,400 tax free or around 29k a year before tax

450 x 4.2 = £1890 a month

plus 40 x 52 = £2080 a year from the small pension

Ans that £40 × 52 is already diminished by around 25% in a matter of months.

It's a sobering read, you pension pot...Well mine is anyway

 

[SpokeyDokey]

well, at 64, scheduled to retire at 66, we have calculated we can survive ok ish on state pension plus her pension (combined should give us circa £450 a week) plus a small amount from my current employers pension.

I have an old works pension that last year had £55k in it, no contributions since I left, it grows and shrinks with the vagaries of pensions performance.
Last year, £55k
This year £44k, this is of course a very small amount in pensions terms. and a big drop in the pot.
Just looked at it 3 months later...£41k
Been considering drawdown, advise from my wife's former pension manager and informal advice elsewhere seems to be in favour of drawdown, and my logic is....
A poorly performing plan, shrinking by the day, losing money hand over fist.
The next year seems extraordinarily uncertain for the financial markets, lots of opinion there will be a recession.
Convert 25% to cash and at least start earning a bit of welcome interest on it.
I'm 64, I don't see markets recovering anytime soon, certainly not going to recover my losses in the next 2 years by staying in so might as well bail out now.
That £44k gave me a less than £40 week pension, its already dropped significantly in 3 months and will probably continue to do so.
We don't have much outgoings, no mortgage or rent, car is paid for.

Going for it...opinions ?

Two things:

Never liquidate an investment asset at the bottom of a trough unless you absolutely have to.

Annuities are loaded in the suppliers favour - poor value in my book.

 

[gbb]

I should say, I dont do big finance, I seem to struggle to even understand the basics with pensions..and am quite lazy tbh. It baffles me, I do tend to run away from the big stuff.
I do small finances very well and scale up my decisions based on that
Never liquidate an investment asset at the bottom of a trough... I guess you mean at that point, it's too late and you might as well hang onto it, wait for it to grow again.
I suspect my pot will continue to shrink, as will many peoples, tough times out there...or maybe I just listen to too many nay sayers.

 

[sheddy]

Worth using the free Govt Pensionwise advice service. Up to an hour on the phone to answer your questions.
https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

 

[nickyboy]

Two things:

Never liquidate an investment asset at the bottom of a trough unless you absolutely have to.

Annuities are loaded in the suppliers favour - poor value in my book.

I hear lots of people saying annuities represent poor value. But then you go and live past the average lifespan and your savings run out. I'll be converting a significant part of my pension pot into an annuity (with 50% continuity for wife in the event I predecease her and indexing) to give peace of mind that the money won't run out

 

[Lozz360]

You cannot assume that because your pension pot has dropped in value recently, it will continue to drop. You could be liquidating at the low point. In any case, what makes you think that the investment you move the money to, will do any better?

 

[SpokeyDokey]

I should say, I dont do big finance, I seem to struggle to even understand the basics with pensions..and am quite lazy tbh. It baffles me, I do tend to run away from the big stuff.
I do small finances very well and scale up my decisions based on that
Never liquidate an investment asset at the bottom of a trough... I guess you mean at that point, it's too late and you might as well hang onto it, wait for it to grow again.
I suspect my pot will continue to shrink, as will many peoples, tough times out there...or maybe I just listen to too many nay sayers.

Re bottom of the trough. I wouldn't say that was the point where it was "too late and you might as well hang on to it".

Tbh the markets (depending on which sector and geographical location) that your fund is invested in May well go a bit lower although the base rate hikes and war shocks are pretty much priced-in, ie reflected in the current status quo of the markets.

And, imo, now (at or near the bottom of the trough) is the time to put money in rather than take it out although admittedly not for the ultra-cautious.

Personal opinion obviously and you are doing right to canvas a wider range of opinions, and as suggested get some impartial professional advice before finalising your decisions.

 

[gbb]

You cannot assume that because your pension pot has dropped in value recently, it will continue to drop. You could be liquidating at the low point. In any case, what makes you think that the investment you move the money to, will do any better?

I'd agree. For 10 years it's grown slowly, steadily, up to £55k (which as I said earlier, is still a very small amount in pensions terms). As it is, this year has seen it tumble by 20% ish and I see more uncertainty on the horizon...as do many if you read enough...so potentially more losses. Were I 45, 50, I wouldnt even be considering it, looking at the longer term but there's only 2 years till I retire , its a very modest pot threatening to reduce perhaps significantly in the short term...and with only 2 years till I think I will draw it, there's no time for it to recoup those big losses, hence my (not yet 100% decided) decision

 

[gbb]

As a wider part of the discussion and length of life and its impact on your retirement...my mum (92) has done ok with dad's military, state and private pensions but I always noticed, there comes a point, where the need for excess cash (over the normal bills and.living costs) diminish and almost disappear. She simply doesn't, can't, do much for the last 10 years, doesn't spend anything like the pensions she gets in (which aren't massive BTW, just better than adequate).and has banked, saved a fair sum instead.
In short, there comes a point where the need for a healthy pension that let's you live well...falls away.
Just one experience of course.

 

[Jameshow]

I'd agree. For 10 years it's grown slowly, steadily, up to £55k (which as I said earlier, is still a very small amount in pensions terms). As it is, this year has seen it tumble by 20% ish and I see more uncertainty on the horizon...as do many if you read enough...so potentially more losses. Were I 45, 50, I wouldnt even be considering it, looking at the longer term but there's only 2 years till I retire , its a very modest pot threatening to reduce perhaps significantly in the short term...and with only 2 years till I think I will draw it, there's no time for it to recoup those big losses, hence my (not yet 100% decided) decision

I'm same as you I don't do finances! But although your pension has dropped by 20% I'm guessing that it's based on invested shares and therefore those share prices are likely to ride probably quite dramatically once we get past covid Ukraine cost of living etc.


I'd hold as putting into cash is putting into a black how which we know is depreciating by 15% a year ( inflation)

If your desprite to take out I'd put it into gold!