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Would you consider cashing in your pension for a lump sum?

Retired workers could be given the right to sell their pensions under plans floated by the pensions minister.

From April, working people will be able to cash in their pension savings for a lump sum when they retire.

Lib Dem Steve Webb said he wanted to extend this to existing pensioners.

His plan would allow pensioners, if they wanted, to sell the annuities they had been required to buy under the old rules to the highest bidder.

This would allow them a lump sum to spend on what they liked, and could be used alongside other pensions they have accumulated, Mr Webb said.

He told BBC News his proposal would not be implemented by April when the changes affecting working people, announced in Chancellor George Osborne’s 2014 budget, come into force.

Mr Webb has previously said pensioners should be free to spend their pension savings on a Lamborghini if they wish.

Under the changes previously announced, people reaching retirement age will no longer have to buy a guaranteed annual income, in the form of an annuity.

Do you understand what the tax implications would be if you took a lump sum? Are you going to throw your cares to the wind and have some fun and let the future take care of itself?  Or do you feel responsible for your own future? 

What are your views?

Would you consider cashing in your pension for a lump sum?

1421 people have already voted, what's your opinion? Yes No

What are your views on this?

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djbowden59
6th Nov 2015
0
Thanks for voting!
If only i could, as i have little to survive on
scandiman
24th Jun 2015
0
Thanks for voting!
I am retired. I have a public sector pension, and took my small private one as 25% tax free, the rest taxable. Even though it will take me well below 40% tax thresh-hold, HMRC have taxed at that level. Contacting them is pointless, an electronic voice told me they will contact me in July. Why take 40% in the first place? They're a law unto themselves.
kabb
14th Mar 2015
1
Thanks for voting!
Check that your pension gives a tax free sum and since you get a better investment % wise from them rather then savings leave an amount in there for the following year.
banjo
6th Mar 2015
2
Thanks for voting!
my pension is only a very small amount so I will take it if & when the offer comes along.
Jonny
21st Feb 2015
3
Thanks for voting!
All very well, but do you trust any Government to provide you with an adequate state pension if, having taken cash from your pension pot, you have insfficient income?

I for one do not.
paisley pattern
18th Feb 2015
3
Thanks for voting!
Yes, definitely. I could do with some of the money now.
banjo
11th Feb 2015
3
Thanks for voting!
I only have a very small occupational pension so I would consider cashing my pension in.
Kinesco
11th Feb 2015
3
Thanks for voting!
For the past eight years I have managed my own SIPP and drawndown on a monthly basis what I have been allowed to do under HMRC rules .
Although I have drawn down substantial annual amounts I now have more in my account than I started with due to my careful equities trading.
If I had an annuity I would now be in a disasterous situation.
So having my cash now released to me from April 6th, I can now decide how much I need to drawdown without any interference from so called 'investment experts'.
As from April 6th I will only draw down sufficient sums that take me up to the 25% Tax bracket, but over the next five years I will take out all my money and stop the 1.25% annual management fee over the total value of my SIPP that I am currently charged.
The SIPP managers do absolutly nothing accept use my cash to make themseleves large amounts of interest whilst they offer me absolutely zero interest.
These, government approved, modern day Robin Hoods, need to be closed down and fast.
Kinesco
11th Feb 2015
3
Thanks for voting!
For those pensioners that need real returns, here is a way to achieve them. www.kinesco.com and the company is operated by pensioners for pensioners.
Munsterlander
7th Feb 2015
3
Thanks for voting!
I think we are very lucky now to have the choice. The old system has been a disaster for many and it is so unfair to the people who had to buy a low rate annuity.
I think we should all live a bit and splash the cash, but keep some back for that rainy day.
meggie83
6th Feb 2015
3
Thanks for voting!
I took out equity release on my house and invested the money to add to my pension.and carried out improvements to my house. It's worked for me.
davie4586
6th Feb 2015
3
Thanks for voting!
Worked hard and long all my life contracting on building sites and construction and wish to enjoy my retirement when I am reasonably healthy.
Archiebald
7th Feb 2015
4
Thanks for voting!
Agreed Davie and you need to enjoy today and now. I think a lot of our parents worked towards 65 to retire and then unfortunately many died young. One of my uncles did this it was such a shame. Saved all his life to retire and died at 65
Annabella
6th Feb 2015
3
Thanks for voting!
No I would want to cash pension for a lump, mainly you never know what is going to,happen long term
percival 41
6th Feb 2015
3
Thanks for voting!
no because we never know what happens long term
flickylou
18th Jan 2015
4
Thanks for voting!
So annoyed I had no choice 5 years ago and now have a pathetic annuity
issy1234
16th Jan 2015
2
Thanks for voting!
I WOULDN'T CASH IN MY PENSION AS WHO KNOWS WHAT WE WILL NEED AS WE AGE, IT WOULD BE GREAT TO GO AND BUY A NEW JAG CAR, BUT DREAMING WILL HAVE TO DO, IT WOULDNT BE PRACTICAL. SORRY FOR LARGE PRINT AND ERRORS IN MY WRITING AS STATED I HAVE A VISION PROBLEM
jaegergran
13th Jan 2015
6
Thanks for voting!
There was a programme on last night and I was quite surprised at how many were just going to blow their pensions on holidays etc. but then the amounts in many of their pension pots e.g. Some had only£30,0000 this would hardly make any difference to their income anyway, as a monthly pension, I think probably best to get electric, boilers, roof etc up to scratch or replaced so hopefully no big future money worries if you don't have much, or perhaps buy a flat and rent it our for an income if your pot is bigger.
One lady had a terminal illness and had just bought an annuity when it was announced, she would rather have left her money to her children and is now wondering what happens to the rest of her money we she goes, is it just lost.
Archiebald
13th Jan 2015
5
Thanks for voting!
I saw that programme as well with Michael Burke and thought it was very interesting. I cannot believe the schemes that people are peddling to us out there-Garages in the Middle East?...Trees in South America...where is the information from the government and the help and advice. Its not much better when looking at some of the pension providers site. The 62 page document that Michael Burke had from one was as he said just loaded with jargon and very difficult to understand. Surly it cannot be that hard to give us decent information?
Baxi
28th Jan 2015
3
Thanks for voting!
I agree Archiebald - sound advice and a bit of prudence will be important in all of this. Also tax advice - the big elephant in the room .... take the lump sum and get taxed AGAIN!!
lindaw
11th Jan 2015
6
Thanks for voting!
I did this - I've used the money to start x2 very interesting and hopefully lucrative new businesses. Time will tell if this was the right thing to do, but if all else fails I'll have 2 lovely narrow boats I can either live aboard or sell:)
dmbrewer
6th Feb 2015
3
Thanks for voting!
lindaw
7th Feb 2015
3
Thanks for voting!
Thank you, dmbrewer 🙂

If you're ever in Lancashire look for us on the Lancaster canal - we're pretty distinctive. See Facebook Graydees Dream. You'd be most welcome to come on board - the kettle is always on !
Baxi
28th Jan 2015
3
Thanks for voting!
What a brilliant thing to do Lindaw. Is that in the UK or overseas?
lindaw
28th Jan 2015
3
Thanks for voting!
In the UK, Baxi - on the lovely Lancaster canal. One boat is for my husband to operate.
He's also taken his 'draw down' and retrained as an RYA Inland Waterways Instructor. He'll be helping people get their Competent Crew, Helmsman and CEVNI qualifications so they can get the most out of their canal holidays, help protect the environment, get discounts from some hire companies on the network and hire boats on the continent.
The other boat is to be used as a skippered charter hotel boat for celebration cruises. So we'll be creating jobs in the area too.
To pull it all together, we're also in the process of setting up a charity to help young people access the training.
Our hope is to be able to commission a purpose-built wide beam boat that anyone ( mobility impaired; sight impaired etc) can crew and helm - we want people with disabilities to be able to take their family and friends on boating holidays, instead of them being taken by others.
Our other aim is to have the first disabled RYA Inland Waterways Instructor on our team. And a 'home-grown' one to boot.
We're having positive feedback from the RYA, Canal and Rivers Trust and Inland Waterways Association people we have spoken to. Other charities involved with young people and people with disabilities are being very helpful and encouraging. All this is very exciting and more than a little scary, but if can't think of anything I would prefer to do with my pension pot - regardless of the very real financial risks involved. We've sunk everything into the projects.
Now I need some other active, interested and young people-friendly 'mature' people to want to come and work with us - doesn't matter whether they're experienced boaters or not. We will give training as required. We need people with life experience to help train and mentor the youngsters in customer care as well as boating. Hopefully some of the youngsters will also turn out to be entrepreneurs and we hope to be able to get themselves launched in business. There are also waterways jobs in the UK and abroad, which holders of the qualifications can access.
Sorry to go on so long, Baxi, but I am passionate about this. If you would like to know more about the projects - or know someone who might be interested - please drop me a line : [email protected]. We also welcome visitors to Graydees Dream if you're ever in our area.
lindaw
28th Jan 2015
3
Thanks for voting!
Just thought - I ought to add that we had excellent advice from an IFA before we went down this route. He explained all the options open to us in no- nonsense and impartial terms. It helps that I had a 'final salary' pension and had bought AVCs over the years. We have a modest, but sufficient income from this. My husband has only a small pension, but together we are able to support our 2 sons who are still in education.
pengi
11th Jan 2015
4
Thanks for voting!
Is this an election ploy to win our vote
Archiebald
11th Jan 2015
4
Thanks for voting!
Probably if you think about it Mr Osbourne appears to be giving us pensioners the ability to cash in our pensions but when you do that after the first 25% its all taxed anyway
ronnieboy
11th Jan 2015
5
Thanks for voting!
this should be given serious consideration by all concerned, take advice from trusted recommended people,do your homework, do not rush into anything, one size will not fit all, take care, happy and healthy new year to all silversurfers.
Archiebald
11th Jan 2015
4
Thanks for voting!
Totally agree Ronnie..its worth reading up closely on these new rules as lump sums will still be taxed
Mike Brightman
10th Jan 2015
4
Thanks for voting!
How about the government bringing out a fail safe system where pensions can be topped up and awarded a guaranteed interest rate - not thrown out to the "free markets" where collapse and loss of all savings are not unknown! I know several people where this has happened in the past. And who do we trust? What sounds like a great idea to live for toady, recklessly, could turn out into a nightmare - I know what financial near disaster is like from the long distant past, thank God, and have helped people via Charity work who struggle to make ends meet by seeking grants, benefits not claimed etc - I'm a great one for having fun but don't let's go too wild - tempting though it is!!!! - Sorry to be a misery! (Michael Brightman author Mystery Factor ebook)
Wilf
10th Jan 2015
4
Thanks for voting!
Think you could be right Mike. I worry that people will blast away all their pensions. Also looking carefully at how it works it will be subject to tax and therefore the one off cash payment could be taxed at up to 45%...nice for HMRC...not so good for all of us!
Munsterlander
8th Jan 2015
5
Thanks for voting!
If it allows you to have a good time, when you still can get out, then go for it.
Peter
6th Jan 2015
6
Thanks for voting!
Anything that give us more flexibility and control over our pension options has to be a good thing.
shortyshah
6th Jan 2015
4
Thanks for voting!
I would like a percentage to keep me going whilst i am not working as this would allow me to do the things whilst i am still fit and able
.
janwa
5th Jan 2015
2
Thanks for voting!
I can see the workhouses coming back to this country. If you sell your annuity then run out of money they will make you sell your home and then put you in a home. No and No again
dougasteadman
5th Jan 2015
5
Thanks for voting!
I was allowed 25% of my pension (tax free ) and the rest as an annuity.
Depending on how sensible you are, taking the 100% of the pot up front (not sure about the tax implications) may be a bit risky. Xxx
Baxi
5th Jan 2015
6
Thanks for voting!
I think there are pros and cons. Some people will be sensible and make sure their money lasts and others will not ...
Gareth
5th Jan 2015
8
Thanks for voting!
Annuities are a rip off and I can only imagine this proposal will be as well......I have no trust in pension companies(look at there mega offices and charges)and even less In government ministers!!!!
Wilf
4th Jan 2015
3
Thanks for voting!
The only problem I see with all this is what happens when many people quickly spend their cash when taking this option. I have not read enough about it but I presume if a person was say 65 takes out an annuity in the form of cash...spends it in a couple of years...we are going to have a lot of poor pensioners and maybe the government will have to start bailing these folk out.
Archiebald
4th Jan 2015
4
Thanks for voting!
Yes I definitely would. I have always thought annuities were a nonsense. The average person didn't really understand them and I have kept an article from the Daily Mail of about 10 years ago which compared the amounts from different companies and the differences were substantial. Why should the government insist on annuities. I know they are changing it for new pensions but they should also change it for existing ones as Steve Webb has suggested. Its a good move and about time as well! get it sorted asap I say!

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