Pension query

[Daij]

Is there any truth in the runour that if you are made redundant after the age of 55 you are entitled to claim your pension?

Thanks in advance

[mike11111]

Not state retirement pension.

[rowanwitch]

It may suit your employer to offer you an actuarily reduced pension if the fund rules permit

[Old_Geezer]

I think you can try to get agreement with your employer to retire and get your company pension after that age, redundancy or not. Of course it won't be worth as much as if you retired later, but you might feel to be rich in time when you are healthy enough to enjoy it is worth being less rich in monetary terms.

[New Judge]

Occupational pension schemes are obliged by law to make their benefits available from age 55 (it changed from age 50 in April 2010). Almost all will apply an “actuarial reduction” to the benefits and most work this out on the basis of a 5% reduction for each year below the scheme’s “normal retirement age” that the pension is taken. So if you would be entitled to a pension of £1,000 per month at age 60 but retire at 55 you would receive £750. As an aside, although this sounds a bit harsh in fact you receive 75% of a full pension for five years, making 375% of a full pension. Disregarding increases it is fifteen years (i.e. age 70) before your total pension take is more beneficial if taken at 60 rather than 55. In addition, you can take up to 25% of your “pension pot” tax free and it may be tax efficient to decrease your annual pension (which would be taxable), increase your lump sum and so decrease your overall tax liability. As has been said, none of this applies to the State pension.

Some more info here:

http://www.direct.gov...lPensions/DG_10027141

[Daij]

Thanks to you all - lots to chew over there.

[factor-fiction]

Yes- the issue of redundancy is not really relevant