#RetirementPlanning #Pension #FinancialAdvice
Hey everyone! 💬 Have you ever considered the risk of overdoing your pension contributions? 🤔 I recently realized that my partner and I have around £40k in our DB pension, with more to come each year. But with no savings and some debt to clear, I’m starting to wonder if we might end up with more pension than we actually need.
Here are some thoughts and questions for discussion:
– Is it possible to adjust our pension contributions to free up some cash now?
– What are the options for bringing forward some of our pension income for a more comfortable life in the present?
– Any tips for balancing retirement savings with current financial needs?
Looking forward to hearing your insights and suggestions! 🌟 Let’s navigate this together and make the most of our financial future! 💰 #MoneyTalks #FinancialFreedom
Is that £40k of DB pension between 2? So say £20k each accrued to date? At what age can you claim the pension without reduction for early retirement? Assuming that you are still members of DB schemes how much additional pension do each of you accrue each year?
Is it £40k combined, and with £12k of state pension each too, for about £64k per year? Does it go up with inflation every year?
Does it all start from age 67/68 or does some of it start earlier? Do you want to retire early?
The optimum way to “bring it forward” might be to keep contributing so as to keep the impact of the employer contribution, but really eat into any of your other savings as you approach retirement especially when you are past the minimum retirement age.
What’s does 40k dB mean in this context? Can you claim 20k each of DB pension at retirement age (likely to move) or something else?
My two pence for what they’re worth is that you’d be foolish to rely on state pension supplementing you by the time you retire. Highly likely to be means tested in the future.