Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[Terbs]

 I have had a notice today from the Pru. I have a small (and I mean small) pension due out on Feb 1st. It seems when I transferred a pension from them to another company, a small amount was left in the policy. Its only £604.00.
I am not allowed to take it as a lump sum, as my other pensions were over the lump sum limit. Of that £604, they are paying me 151.00 (25%) and then £17.83 per year. This means to get the other £453.00 I have to live till I'm 90, another 25 years
What a total con.

All I can say to you younger ones is, when you get any private pension payout quotes, study how long you will have to live to get back what you have paid in, especially if you do not take the 25% tax free allowed by law.
As an example, swmbo had her John Lewis pension....not large, but a few thousand pounds. She took the 25% tax free and has a £200 per month income on it. Had she not taken the cash, the monthly amount only increased by a few pound, and it would have taken 18 years to get that cash equivelent back, meaning the ole' gal has to live to almost 80

Going back to my small pension....what a load of paperwork, time and money wasted for £17.83 month. Would you not have thought that on a piddling amount like that, the government would have been happy to give me the lot and taken 20% in tax. !!! The world has gone barmy

If there is a thing called reincarnation, I am coming back as an immingrant

[cleggy]

You're lucky Tony, have one that pays £1.50 per month.
It was one I'd totally forgotten about while working for a few months at a company, the paper work was ridiculous, same as you because the sum of my pension was over the limit I coudn't take it in cash. Mind you the couple of hundred quid lump sum paid for a nice night out . It must cost more to administrate than the payment to me every month
Does Chris still get the John Lewis staff discount worth more than a pension the amount we spend there.

[Bionic]

  If there is a thing called reincarnation, I am coming back as an immingrant

terbert m8, Every right thinking person who is truly of white uk decendancy should adopt the same reasoning. Too late was the warning given by old Enoch Powell given credence and now look where we are. Leicester is the first English city to be recorded as having a greater population of immigrants than true  UK nationals. The pillock that opened the flood gates should be shot, hung, shat on or whatever and then help in full public view for their, in my view, acts of treason.
The human rights act only did good for its proposer that witch Cherie Blair and the sucker of her hubby that was obviously well under her thumb. Funny how they now live in the USA!   
Fortunately I saw the writing on the wall and cashed mine in just over two years ago for the full lump sum. I paid into the state system all my working life (very, very few sick days off) and now it can pay me back! Any state pension should only be given to anyone who has worked and paid full taxes in this country for a minimum of 25 years. Immigrants should not be entitled to it just because they now live here by their own choice. They should have to pay into a private pension of their own to provide support in their old age and not be subsidised by those of us who have paid into it to qualify. Lets have some justice for those who have paid and none for the beggars and scroungers who have made no input!

[jonathanh]

let me check but I think the pru are wrong.  if it is less than £2000 there should be no issue as taking it as a lump sum

will post more later when I've done a bit more research.  don't just assume they have it right

PM me with more details if you want:  I'm guessing this is a personal pension with prudential

[Terbs]

Sorry Cleggy...I mis typed further into my post...it should read 17.83 per year

[Terbs]

Yes jonathanh, it is a personal pension with the pru.....
Bear in mind, I have already taken my main personal pensions which were above the £17,500 limit to be able to take it all as lump sum This was explained that because I was already above the limit, I could not take any more whole sums (less tax)

[Terbs]

And yes, Cleggy....she still gets discount and other priveledges....but obviously no yearly bonus make up to a real wage

So you keep spending, buddy

[Terbs]

I heartily agree, Bionic......I have worked all my life with hardly any time off, come wind rain snow. etc.

Thing is....once you get pension, soon as you die, if early..its gone. All that money probably used to fund those not entitled to it.
I am glad I took my two personal pensions a few years ago, at least we can see some benifit from them, home improvements, new caravan, etc. My prophesy is live and spend while you have it....you worked hard enough for it.

[Varche]

I have personal experience of a relative who had a small pension like this on top of their state pension. It meant that unlike folk in the same street on basic state pension, they weren't entitled to benefits because they were receiving too much! They ended up being worse off than someone who hadn't bothered to save.

I am no expert but I believe that you either need to save in a big way(as much as you cannot afford) e.g. pension,property OR spend and have a great life and either accept poverty in old age/bargain on not living very long after retirement. 

[jonathanh]

ok

I've looked a bit further:  this is techie stuff.  Prior to april 12 it was impossible to take the lump sum you deascribe from a personal pension.  it was available from an occupational scheme.  This was changed at April 12 to include personal pensions.

the reference from the HMRC is here http://www.hmrc.gov.uk/pensionschemes/small-pen.htm#3

I suggest you read the stuff linked and challenge the Prudential, it seems like their admin process has not been updated

good luck

[2boxerdogs]

Did a lot of research into pensions a few years ago , they are now based on a male living to 92 years of age so example, say you have a pension pot of £80,000 you get 25% tax free lump sum of £20,000 the other £60,000 is divided by the years left till you (if!!) reach 92  so say  you decided to take it at 62 years of age your pension would be only two thousand pounds per annum, if you die your spouse  gets a percentage for I believe  5 years the rest goes, only winners are the insurance/pension companies.If you are able to put a decent amount away for your retirement your are better investing in property / gold, although these are now no guarantee.Myself I would rather spend it on leisure time activities & my grandkids  that is why I withdrew all my private pensions as early as I could.

[jonathanh]

Did a lot of research into pensions a few years ago , they are now based on a male living to 92 years of age so example, say you have a pension pot of £80,000 you get 25% tax free lump sum of £20,000 the other £60,000 is divided by the years left till you (if!!) reach 92  so say  you decided to take it at 62 years of age your pension would be only two thousand pounds per annum, if you die your spouse  gets a percentage for I believe  5 years the rest goes, only winners are the insurance/pension companies.If you are able to put a decent amount away for your retirement your are better investing in property / gold, although these are now no guarantee.Myself I would rather spend it on leisure time activities & my grandkids  that is why I withdrew all my private pensions as early as I could.

that's not exactly how annuities are priced nor how spouse's pensions work.  It is a judgement call whether you prefer pension saving, ISAs or something else.  all have pros and cons

[2boxerdogs]

I disagree it, is exactly how they work, I am in receipt of my pensions from the Prudential & Sun Life & have all the relevant documentation,  for me to gain I must survive another 13 years, if  I kick the bucket before then the companies gain thousands.

[jonathanh]

I disagree it, is exactly how they work, I am in receipt of my pensions from the Prudential & Sun Life & have all the relevant documentation,  for me to gain I must survive another 13 years, if  I kick the bucket before then the companies gain thousands.

  Your point about 13 years may be true ( it might be slightly different if you allow for some investment return you could get on the money you receive - but that's a minor point).  But if you kick the bucket early ( god forbid) it is not exactly profit for the insurer.  because they may have to use that money to pay the pension for those that live longer than they anticpate.   What matters to an insurer is whether on average people live longer or shorter than they price in to annuities.  if on average they live longer, they make a loss, if on average they live shorter they make a profit.  I'm not denying that they do make profit from these policies ( after all that's what the isurer is in business for, but its not exactly straight forward)

oh and they don't use a fixed age of 92; lots take into account health conditions (enhanced annuities) which have different ages.  And ( would you believe it) the age will depend on how old you are today. 

a bit off topic I know

[jimac]

I disagree it, is exactly how they work, I am in receipt of my pensions from the Prudential & Sun Life & have all the relevant documentation,  for me to gain I must survive another 13 years, if  I kick the bucket before then the companies gain thousands.

All you have done is placed a bet with the insurance companies using your pension (annuity) as the stake money.  You have bet that you will live more than 13 years and the insurance companies are betting that you won't.  All you have to do is make sure that you win the bet!