Works Pension

[lankeela]

Official retirement date is in May and I have a very small NEST pension from work (approximately £1,500) - I had intended to work on after my retirement date but with the current situation don't know if I will have a job at the end of this. Should I take the lump sum in May or leave it and hope I can add to it? Been through the NEST website and my head is spinning! They talk about transferring to another type of pension and lots of jargon that I just don't understand. Don't want to end up losing the money and could probably do with it after the next few weeks.

[jennyjoan]

lift it all

[-SharonA-]

Any money owing, I say take it all. You never know with this government and I don't want them to have a penny of what's mine.

[lankeela]

They also say if I take the money only 25% will be tax free - so am I better to take it now or in May?

[-SharonA-]

Makes no difference, now, April or May.

[jennyjoan]

Lankeela - is £1500 your lump sum or is that what you will get every month.

[fiction-factory]

If it's NESt it'll be the total pot, jenny. The weekly amount will be so small I'm afraid that it's not worth worrying about a few months. The main issue will be tax- if you are earning above the tax threshold you'll pay tax on the pension but if you wait until after retirement you may not be a taxpayer so will get it free of tax. In theory income for a lifetime usually pays more than the tax free lump sum +lower income but I'd take as much as possible tax free.

[jennyjoan]

well I thought that too if it was the total pot - then Lankeela is better lifting the heap for what it's worth.

[gulliver1]

With present times , and the present Government take it before they do

[fiction-factory]

One aspect to remember is that your employer will contribute to the pot as you contribute so you might as well stay in until you stop earning from this job.

[Peter Pedant]

actually I think this is a small lump sum and you should do so
a friend had £10 000 in his fund and gets £150 a month