New Pension Rules

[bednobs]

what id going to happen when people take their pension lump sum at 55, and then run out of money later in life?

[Old_Geezer]

Well... I'm sure the State pension is generous enough to cover their needs.

[Old_Geezer]

But they mustn't run out before they're 72 though, er 84, er 96 er 125

[woofgang]

same as does now...they will end up on pension plus any benefits they are entitled to.

[douglas9401]

Wonga.

[dave50]

The same as those who never bothered saving for a pension in the first place.

[LyndaB]

We are seriously considering doing it - hubby took out 25% a year or so ago and now gets a small pension in addition to his wages. For the amount that's left in the pot he would have to live to be about 100 to get it all back as a monthly payout so if he can do it, he probably will. I'm not concerned about mine - I only earn a small amount but will get a full pension which will be on a par with my current take home pay

[dancecaller]

They will claim that they've been 'mis-sold' and deserve compensation.

[New Judge]

They will receive the new pension (currently about £35 per week more than those who retire before 2016). They will receive pension credit to take them up to whatever the guaranteed minimum is at the time. That will then open the door to all manner of other benefits (such as free dental treatment and all the benefits that are likely to become means tested in the future such as bus passes and winter fuel allowance). Meanwhile those who have managed to save a bit for their dotage will reeceive the absolute minimum state pension (which will be taxable) and pay for everything else.

[fiction-factory]

I think pension credit will stop when the new universal pension comes in.

[LyndaB]

As I understand it, in 2016 it will be a flat rate with no top ups

[kat1]

Taking mine next month when I'm 55, means I won,t be means tested when I,'ve spent it all .

[jasmin26]

I was thinking about taking mine at 55 too but need to look into the income tax side of things before I decide.

[fiction-factory]

I can see why that might be a strategy under the current arrangements, kat, but there may not be any means testing when you're older as pension credit is going I think