Withdrawal of pension

  natdoor 11:44 10 Apr 2015

The new regulations may not affect many forumites because of our age and probable defined benefit pensions. It is probably true that annuities do not in general provide good returns and there may be complete justifiction for someone with no need for a survivor's pension to withdraw money if, sadly, having a short life-expectancy due to ill-health.

There has been a lot of speculation that many will withdraw all or most of their pension pot and spend it on holidays or expensive purchases such as classic cars. It is often said that individuals are able to manage their financial affairs better than, say, the state. However, there is ample evidence that there are many to whom this does not apply. Perhaps some will not worry about the longer term because the state will be there to help with benefits. I would suggest that the legislation should have included a clause that anyone withdrawing more that 25% of their pot would be assumed in retirement to be receiving the amount of money they would have got if it had not been withdrawn when assessing entitlement to benfits.

  BT 12:31 10 Apr 2015

..withdraw money if, sadly, having a short life-expectancy due to ill-health.

In my opinion probably the only sensible reason to take your money early even allowing for the Tax Liability.

I had 2 pensions when I retired one of which had been frozen for 20 years and both gave me a good lump sum plus a reasonably decent monthly payment.

  natdoor 15:19 10 Apr 2015

Rumpleteazer, I agree. I suspect that Osborne is hoping to reap large tax benefits in the short-term. The cost impact would begin to arise in 10 years or so when he will no longer have to deal with the problem.

  Nontek 17:17 10 Apr 2015

I don't have any choice, the Govt effectively stole my pension when I left the army in 1973 after 21 years unbroken service - I now dependon benefits and diaabled assistance.

  cream. 19:24 10 Apr 2015

Spot on natdoor, it will increase the coffers, short term.

Probably the best long term return will be in buying new property and renting out. This should give a modest monthly income and let your capital grow in the value of the property.

Those who flitter away ALL of their pension deserve all they get.

  natdoor 07:25 11 Apr 2015


I am sorry that you feel that you have been deprived a rightful income. I am unaware of the circumstances which gave rise to that. To be clear, I fully support benefits for those who, through no fault of their own, are in straitened circumstances. But I'm sure that there are some who blow everything and let the state support them afterwards.

  BT 08:21 11 Apr 2015

'But I'm sure that there are some who blow everything and let the state support them afterwards.'

Can't find it at the moment but the DWP has stated that people who take out their money and in effect 'Waste' it rather than use it sensibly will be regarded as receiving the equivalent pension when they retire and any Benefits will be assessed accordingly.

  natdoor 08:45 11 Apr 2015


I look forward to seeing that statement from DWP. I would have thought that if that were to be the case, it should have been made clear in the budget statement, when the ability to withdraw was introduced. It should also be made clear on the government Pensions Wise site but I can find no reference there. Also, all other advisors should be informed.

  Nontek 15:58 11 Apr 2015


Stolen, not deprived! Though I am not alone, all Service personel who left the Services before completing a 22yr contract, during a roughly three year period around 1973, had their pensions stolen - regardless of the fact that this was never mentioned before-hand in our original contracts.

I am still most agrieved, so any legal options I have to take as much from the so-called benefits system as I can, I will do so - though this will never cover that which was stolen.

Can you imagine any civillian employer getting away with this - "we are keeping your pension and you will not get a penny for your loyal 21years service because you did not complete 22yrs" I left the Army when I did because I was awarded sole custody of my two very young children when I divorced.

  john bunyan 16:04 11 Apr 2015


Your treatment by MOD / Pensions seems disgraceful. I assume you have exhausted all avenues of redress, including getting your MP involved?

I wish I could do more than sympathise; I am so lucky to have a company pension and would find it hard to rely solely on the State Retirement pension. Do try for, example, for Attendance Allowance if you qualify.

  Nontek 16:17 11 Apr 2015

john bunyan

Thanks - yes, I have tried all options including joining what was called The Armed Forces Pension Group (now disbanded after so many years of battling the govt) even with the help of various MPs - a pity we did not have Joanna Lumley in our 'corner'.

I do get the lower rate of Attendance Allowance, shortly to be upgraded to the higher rate due to worsening circumstances.

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