Windfall

[STEMO]

I worked for Vauxhall motors in Ellesmere Port for about 8 months in the early seventies. During this time, I paid into a company pension. Today I received a letter informing me that this pension would now pay out.
I can take a lump sum of £38.80, the first 25% being tax free, but the remaining 75% being subject to income tax, which the pension company, Abbey Life, will deduct.
Or...I can take an annual pension of £1.94. This may be subject to income tax, depending on my personal circumstances.
They advise me to contact an independent financial advisor before making a decision.

What would you do? 

[Lizzie Zoom]

I worked for Vauxhall motors in Ellesmere Port for about 8 months in the early seventies. During this time, I paid into a company pension. Today I received a letter informing me that this pension would now pay out.
I can take a lump sum of £38.80, the first 25% being tax free, but the remaining 75% being subject to income tax, which the pension company, Abbey Life, will deduct.
Or...I can take an annual pension of £1.94. This may be subject to income tax, depending on my personal circumstances.
They advise me to contact an independent financial advisor before making a decision.

What would you do? 

Surprise, surprise........take the £38.80 and run!!

[STEMO]

I worked for Vauxhall motors in Ellesmere Port for about 8 months in the early seventies. During this time, I paid into a company pension. Today I received a letter informing me that this pension would now pay out.
I can take a lump sum of £38.80, the first 25% being tax free, but the remaining 75% being subject to income tax, which the pension company, Abbey Life, will deduct.
Or...I can take an annual pension of £1.94. This may be subject to income tax, depending on my personal circumstances.
They advise me to contact an independent financial advisor before making a decision.

What would you do? 

Surprise, surprise........take the £38.80 and run!!

About £33 after tax...I could put half a tank of diesel in with that. 

[Lizzie Zoom]

I worked for Vauxhall motors in Ellesmere Port for about 8 months in the early seventies. During this time, I paid into a company pension. Today I received a letter informing me that this pension would now pay out.
I can take a lump sum of £38.80, the first 25% being tax free, but the remaining 75% being subject to income tax, which the pension company, Abbey Life, will deduct.
Or...I can take an annual pension of £1.94. This may be subject to income tax, depending on my personal circumstances.
They advise me to contact an independent financial advisor before making a decision.

What would you do? 

Surprise, surprise........take the £38.80 and run!!

About £33 after tax...I could put half a tank of diesel in with that. 

[biggriffin]

Transfer the lot into your other provider.

[dave the builder]

Now you made it public, expect begging letters and friends and family, who you have not seen in years to appear 

[STEMO]

Now you made it public, expect begging letters and friends and family, who you have not seen in years to appear 

I don't have any friends and most of my family moved...during the night. Hard to fathom why, really.

[Sir Tigger KC]

Take the £1.94 per annum, as you said in another thread that you come from a family that has enjoyed longevity! 

As the amount is so small, you might not have to pay tax on it, so after 17 years you'll be in profit! 

[Rods2]

Consider taking the £1.94 as that is a 5% return. Ask them if you get a guaranteed payment length, say you are looking for 5 years as a minimum and is there any annual inflation escalation, while keeping a straight face and taking in a deeply serious voice,  but she might have to discuss it with her boss before she gets back to you.

If she suggests that you are taking the pee, tell her, well your letter started it.

So, then take the mighty lump sump and look to buy an open market annuity with it.

[2boxerdogs]

Spend it wisely 😀😁😂

[BazaJT]

Take the lump sum and you might actually be able to buy some shoes that fit you properly

[biggriffin]

I worked for Vauxhall motors in Ellesmere Port for about 8 months in the early seventies. During this time, I paid into a company pension. Today I received a letter informing me that this pension would now pay out.
I can take a lump sum of £38.80, the first 25% being tax free, but the remaining 75% being subject to income tax, which the pension company, Abbey Life, will deduct.
Or...I can take an annual pension of £1.94. This may be subject to income tax, depending on my personal circumstances.
They advise me to contact an independent financial advisor before making a decision.

What would you do? 

How did you achieve that, at a car plant in Liverpool in the 70's.

[BazaJT]

Must've been a strike breaker

[Shackeng]

Steve, I think given the variety of advice offered, you should consult your financial adviser, ignore him, and then buy another Omega with the £38.80.

[STEMO]

Steve, I think given the variety of advice offered, you should consult your financial adviser, ignore him, and then buy another Omega with the £38.80.

I'd need an estate, and it would have to be a facelift. I might have to put a tenner towards the payout.
But, yes, worth considering.