Retirement

[Tashyboy]

Talking to a guy yesterday at golf. I asked him how retirement is going. Bottom line he got a bit upset and said he is really struggling. Cannot get any motivation to do anything. I said about getting things on the calendar to get things done. He said he has a list as long as his arm but he struggles to get away from the television. He just cannot get motivated. The only thing he looks forward to is golf. I jokingly said “ am sorry your stuck with me for 4 1/2 hours”. He laughed his head off and said “thats exactly what I am missing, the crack”.

 

[Robster59]

Talking to a guy yesterday at golf. I asked him how retirement is going. Bottom line he got a bit upset and said he is really struggling. Cannot get any motivation to do anything. I said about getting things on the calendar to get things done. He said he has a list as long as his arm but he struggles to get away from the television. He just cannot get motivated. The only thing he looks forward to is golf. I jokingly said “ am sorry your stuck with me for 4 1/2 hours”. He laughed his head off and said “thats exactly what I am missing, the crack”.

Everyone is so different. I know of some who vegitate, but others who say they don't know how they found the time to work. Certainly its an important part of planning for your retirement. I'm a bit worried about my missus on this point.

 

[Lord Tyrion]

Talking to a guy yesterday at golf. I asked him how retirement is going. Bottom line he got a bit upset and said he is really struggling. Cannot get any motivation to do anything. I said about getting things on the calendar to get things done. He said he has a list as long as his arm but he struggles to get away from the television. He just cannot get motivated. The only thing he looks forward to is golf. I jokingly said “ am sorry your stuck with me for 4 1/2 hours”. He laughed his head off and said “thats exactly what I am missing, the crack”.

Sounds like depression. Try and get him to see his Dr, he needs to talk to someone. At least he recognises an issue, that's often half the battle.

 

[NearHull]

Talking to a guy yesterday at golf. I asked him how retirement is going. Bottom line he got a bit upset and said he is really struggling. Cannot get any motivation to do anything. I said about getting things on the calendar to get things done. He said he has a list as long as his arm but he struggles to get away from the television. He just cannot get motivated. The only thing he looks forward to is golf. I jokingly said “ am sorry your stuck with me for 4 1/2 hours”. He laughed his head off and said “thats exactly what I am missing, the crack”.

What helped me was volunteering. I did three years volunteering with the Police, it was sometimes boring , sometimes stimulating, but the humour was great - even darker than what we experienced in the military.

 

[Tashyboy]

What helped me was volunteering. I did three years volunteering with the Police, it was sometimes boring , sometimes stimulating, but the humour was great - even darker than what we experienced in the military.

What did you volunteer in NH. Odd thing is dark humour is what got you through bad times. Not sure it is acceptable in today’s woke world but it was an essential part of mining some days.

 

[PJ87]

What did you volunteer in NH. Odd thing is dark humour is what got you through bad times. Not sure it is acceptable in today’s woke world but it was an essential part of mining some days.

Firstly the correct term is political correct world. Woke isn't a bad thing and people need to stop using it as a put down. Being awoken to situations around you and others feelings it's a fantastic thing

Also dark humour is fine

 

[NearHull]

What did you volunteer in NH. Odd thing is dark humour is what got you through bad times. Not sure it is acceptable in today’s woke world but it was an essential part of mining some days.

I may have inadvertently misled you. I haven’t , touch wood, had any mental issues when I retired, I was just explaining how I evaded the tv couch.

 

[The Fader]

Another update.

Well it's been a bluddy nightmare, and it's still on going. Why?
The pension company that had my pension had sent it to the pension company I have the draw down (DD) with. Wahooo! BUT. (I've been away) The pension company that has the DD pension won't accept defined pension (DP) and apparently told the pension company that had the money but sent it anyway. The DD pension company are returning the money!!!!! I have now contacted the pension company that sent the money out, to say please could you let me know when you get this money back, and where can I find a company that will take a DD pension. (I have found one but they want £7K AND I have to go though the rigmaroll of advice again, which I don't want or need!).

So, if anyone knows anyone out there that can sort this without fleecing me, I would be very VERY grateful.

Before I went away, I did speak to an advisor about this, he had no ideas, but I said to him at the time, "this money is going to get lost"

Unfortunately I think you are going to struggle. I am assuming you are dealing with a defined benefits pension.

Moving DBP's into Drawdown pots is tricky and expensive because of the inherent risk of switching certainty to uncertainty. The receiving pension provider will almost certainly want to see a comprehensive assessment from an accredited financial advisor that making this switch is suitable and that you understand the risk involved. Not every FA is qualified to give this kind of advice and those that do charge high fees because of the risk of being sued if it goes wrong (the old investments can go down as well as up)and therefore the high cost of their professional indemnity insurance covering their ability to recommend such a course of action.

I moved my 2 x DBP's into drawdown because I wanted to retire early and also to protect my wife. Luckily I have a family member who is an actuary who was able to recommend a great FA who gave me "mates rates". Even then it cost North of £10k.

Hope somebody knows another way!

 

[PhilTheFragger]

Unfortunately I think you are going to struggle. I am assuming you are dealing with a defined benefits pension.

Moving DBP's into Drawdown pots is tricky and expensive because of the inherent risk of switching certainty to uncertainty. The receiving pension provider will almost certainly want to see a comprehensive assessment from an accredited financial advisor that making this switch is suitable and that you understand the risk involved. Not every FA is qualified to give this kind of advice and those that do charge high fees because of the risk of being sued if it goes wrong (the old investments can go down as well as up)and therefore the high cost of their professional indemnity insurance covering their ability to recommend such a course of action.

I moved my 2 x DBP's into drawdown because I wanted to retire early and also to protect my wife. Luckily I have a family member who is an actuary who was able to recommend a great FA who gave me "mates rates". Even then it cost North of £10k.

Hope somebody knows another way!

About 7 years ago at 55 I was given my pension figures from the bank’s gold plated final salary scheme that I worked for from 1980 to 1996, never made any extra contributions and I was amazed at the size of the pension pot, especially as they were only going to pay me £4500 Pa.

I would have had to live to 130 to get all the dosh.

Took advice from a recommended IFA at a cost of £7000, who said that the final salary schemes are only allowed to invest in rock solid , safe, interest bearing products, and the low interest rates mean that they have had to artificially inflate the figures, so that if the pot was transferred to another provider, that’s what they would have to invest to provide my guaranteed minimum pension.

Moved it under advice to The Pru, where it has increased by nearly 50% in 7 years.

Best thing I ever did ( apart from getting divorced) I now have no future financial worries, and when I pop it, it forms part of my estate, so can be passed on, unlike the original bank scheme
Win win

The moral is proper financial advice is expensive, but worth it in the long run , but half baked financial advice is worthless

 

[SwingsitlikeHogan]

Unfortunately I think you are going to struggle. I am assuming you are dealing with a defined benefits pension.

Moving DBP's into Drawdown pots is tricky and expensive because of the inherent risk of switching certainty to uncertainty. The receiving pension provider will almost certainly want to see a comprehensive assessment from an accredited financial advisor that making this switch is suitable and that you understand the risk involved. Not every FA is qualified to give this kind of advice and those that do charge high fees because of the risk of being sued if it goes wrong (the old investments can go down as well as up)and therefore the high cost of their professional indemnity insurance covering their ability to recommend such a course of action.

I moved my 2 x DBP's into drawdown because I wanted to retire early and also to protect my wife. Luckily I have a family member who is an actuary who was able to recommend a great FA who gave me "mates rates". Even then it cost North of £10k.

Hope somebody knows another way!

I moved a DB pension into drawdown as I wanted me and my Mrs to be able to do a long travel (she being in remission from C)..with her retired and me on unpaid leave. We had our financial advisor engage a qualified pensions transfer specialist in his company. Bottom line is that the specialist assessment was that the transfer factor was high enough and the risk to us was acceptable, but pretty much only because my wife’s index-linked NHS pension was sufficient to cover our regular household outgoings after we paid off our mortgage by crystallising in one go all of the 25% of the transfer value, plus we had to have my funds invested very ‘conservatively’.

I’ll note that the Suitability Report was extremely extensive, thorough and detailed - and covered every reasonable alternative to a transfer from DBP to Drawdown. Hence the potential, and often, high cost.

 

[The Fader]

I moved a DB pension into drawdown as I wanted me and my Mrs to be able to do a long travel (she being in remission from C)..with her retired and me on unpaid leave. We had our financial advisor engage a qualified pensions transfer specialist in his company. Bottom line is that the specialist assessment was that the transfer factor was high enough and the risk to us was acceptable, but pretty much only because my wife’s index-linked NHS pension was sufficient to cover our regular household outgoings after we paid off our mortgage by crystallising in one go all of the 25% of the transfer value, plus we had to have my funds invested very ‘conservatively’.

I’ll note that the Suitability Report was extremely extensive, thorough and detailed - and covered every reasonable alternative to a transfer from DBP to Drawdown. Hence the potential, and often, high cost.

Sorry, I didn't realise you had already had the assessment done.

Can't understand why the Drawdown company would refuse funds.

Good luck and I hoped you get sorted and away on your travels sooner rather than later.

 

[SwingsitlikeHogan]

Sorry, I didn't realise you had already had the assessment done.

Can't understand why the Drawdown company would refuse funds.

Good luck and I hoped you get sorted and away on your travels sooner rather than later.

I did the transfer and our travelling back in 2019…but thank you in any case.

I can’t think of any obvious reason why the drawdown company would refuse funds from a DBP…unless FCA rules mean that they are not allowed to unless a full Suitability Assessment has been carried out for you by a qualified pensions transfer advisor - and a transfer is deemed an appropriate strategy for you. The drawdown company will make money out of your funds transferred and the FCA will, I am sure, want to protect those with a DBP from unsuitable transfers and also from transfers into unsuitable funds.

 

[jim8flog]

Initially announced in 1991, enacted I believe in 1993 - seems enough time to me. Many, many more things in life have changed with little or no notice. We would have been better off if it remained as was but it all seems right and reasonable to me.

I too take a bit of this view.

Pension age changing....

I am a man and I knew all about the changes when they were made and reckon they were very well advertised at the time. It not only affected pensions but various other 'benefits as well' eg (from memory) when you got the heating allowance.

I had quite a bit of a 'row' with another member at the club who was complaining loudly about it happening to his daughter.

Has it not always been the view that ignorance of the law is no excuse.

 

[IanM]

The moral is proper financial advice is expensive, but worth it in the long run , but half baked financial advice is DANGEROUS

An additional thought.

 

[SwingsitlikeHogan]

I did the transfer and our travelling back in 2019…but thank you in any case.

I can’t think of any obvious reason why the drawdown company would refuse funds from a DBP…unless FCA rules mean that they are not allowed to unless a full Suitability Assessment has been carried out for you by a qualified pensions transfer advisor - and a transfer is deemed an appropriate strategy for you. The drawdown company will make money out of your funds transferred and the FCA will, I am sure, want to protect those with a DBP from unsuitable transfers and also from transfers into unsuitable funds.

Little update on transferring from DBP.

They are hardly happening at the moment…in fact over the last three years they have become quite rare. The problem is that the Cash Equivalent Transfer Value being offered by the DBP providers just isn’t enough…the transfer factors that drive the CETV are too low at the moment (and have been for a few years) for a Sustainability Assessment to be able to recommend a transfer. As a result a Drawdown provider simply will not accept any transfers - the FCA just won’t let them even if they were willing. The risk is just too high that the CETV won’t deliver a pension over a reasonable period.

 

[Crazyface]

Little update on transferring from DBP.

They are hardly happening at the moment…in fact over the last three years they have become quite rare. The problem is that the Cash Equivalent Transfer Value being offered by the DBP providers just isn’t enough…the transfer factors that drive the CETV are too low at the moment (and have been for a few years) for a Sustainability Assessment to be able to recommend a transfer. As a result a Drawdown provider simply will not accept any transfers - the FCA just won’t let them even if they were willing. The risk is just too high that the CETV won’t deliver a pension over a reasonable period.

It's (almost) impossible to find anyone that will touch these. I just don't get it. My pot is only £73K and is only quoted to pay out £3K a year. (£270 a month). Where as If I was in a draw down I could grab it as quick as possible and lock it away in a savings at 5%. Lots of other info was provided, but despite me telling the supposed smart aleck that I knew what I was doing, he thought better and now I'm stuffed. When I tell people (who are coming up for retirement) they don't believe me. "But it's your money!"
Just had a tel con with a pension advisor. They just will not touch these things!

 

[SwingsitlikeHogan]

It's (almost) impossible to find anyone that will touch these. I just don't get it. My pot is only £73K and is only quoted to pay out £3K a year. (£270 a month). Where as If I was in a draw down I could grab it as quick as possible and lock it away in a savings at 5%. Lots of other info was provided, but despite me telling the supposed smart aleck that I knew what I was doing, he thought better and now I'm stuffed. When I tell people (who are coming up for retirement) they don't believe me. "But it's your money!"
Just had a tel con with a pension advisor. They just will not touch these things!

I think the issue is the pressure from the FCA on the Drawdown providers. You perhaps have a chance if you get a full Suitability Assessment done and in that you have included all the personal factors that are driving your wish to transfer.

In my case my wife was in remission from C and we wished to travel, and I would have to take unpaid leave. For my wife’s NHS pensions to cover our ongoing monthly costs I had to do a transfer and crystallise the full 25% of the CETV to pay off the mortgage. But as I noted earlier…even with the multiple I was able to get it was touch and go whether the SR could OK it…and it only went ahead on the basis of my wife’s income…unfortunately the advice I got from my FCA friend on this is that at the moment transfers are not happening seemingly no matter the specific individual circumstances.

The issue the pensions advisor will have even doing a SR for you is that the conversion multiples are very low, and as a result no pension advisor will give the OK to a transfer, and that will be stated in the SR. As a result no Drawdown company will accept the transfer given the SR.

 

[PJ87]

It's (almost) impossible to find anyone that will touch these. I just don't get it. My pot is only £73K and is only quoted to pay out £3K a year. (£270 a month). Where as If I was in a draw down I could grab it as quick as possible and lock it away in a savings at 5%. Lots of other info was provided, but despite me telling the supposed smart aleck that I knew what I was doing, he thought better and now I'm stuffed. When I tell people (who are coming up for retirement) they don't believe me. "But it's your money!"
Just had a tel con with a pension advisor. They just will not touch these things!

Perhaps he was a member on here and thought best not to let you go about with one of your ideas

 

[Crazyface]

Perhaps he was a member on here and thought best not to let you go about with one of your ideas

Another rib gone.

 

[PJ87]

Another rib gone.

The point is they have to provide the full advise, it's the law. No matter how smart you are. It stops people making bad decisions

So it's a good thing. Would you rather be told too much or not enough?