pension lump sum

[Buck]

@Pat "5mph" you’re right they are.

Going bankrupt though is a different matter in that your assets can be sought by the creditor or their agent.

 

[nickyboy]

?

Not taking your tax free lump sum means more if your pension is taxable as that “benefit” doesn’t transfer when taken as income

That's the critical point re the tax free lump sum. Were you not to take the tax free lump sum, your pension pot would be bigger and thus the pension you can buy with the pot would be bigger. Depending on an individual's circumstances, that additional pension could be taxed

The general advice is that you're better to take the tax free lump sum if you have the financial discipline not to see it as a bonanza and go crazy with it. Of course go crazy a bit. But if you take the lump sum and then invest it in the same sort of way that your pension pot is invested, you get the same returns (which will be taxable) as if it was a pension but you can draw on the capital without any taxation implications

 

[Buck]

@cyberknight - did you find out if you can access financial advice via work?

 

[albion]

Careful, any independent pension advisor will take a cut, adding just a little more complexity to it.

 

[Gunk]

Careful, any independent pension advisor will take a cut, adding just a little more complexity to it.

Or you just pay a fee for their advice.

 

[mikeIow]

You can get a free hour with Pensionwise - a Government offered scheme.
They have nothing to sell you, and should be able to explain the mechanics accurately for you 👍

TBH, I’m with others here who suggest quite strongly that you should NOT touch your pension at this stage.
The next step must be to get your wife to get help with those store cards - that could be a recurring challenge if you cannot both sort that out.
Good luck 🤞

 

[cyberknight]

" can i hand my notice in when the debts cleared ? " is the talk we had yesterday , you can imagine my response .

 

[vickster]

" can i hand my notice in when the debts cleared ? " is the talk we had yesterday , you can imagine my response .

How’s she planning on clearing them, did she explain in that talk ?

 

[cyberknight]

How’s she planning on clearing them, did she explain in that talk ?

down to me basically .

 

[vickster]

down to me basically .

I hope you calmly explained that isn’t going to happen. She needs to get debt management advice, that’s down to her. Presumably none of the stuff bought on the store cards can be returned?

 

[All uphill]

Have you heard of the drama triangle?
It's a cycle some relationships get into.

Victim - They always do this to me
Rescuer - I got them out of trouble
Persecutor - I'm not letting them get away with this.

Lots on the Web explaining how to get out of the cycle.

 

[cyberknight]

Im not in the right mind anyway today
1st week back at work was a killer , 4 days with high overtime due to catch back from pre x mas break downs meant i did 42 hours in 4 days topped off with long travel times due to floods so im grumpy and tired plus i havent ridden all week because of the hours and diversions due to the floods

 

[Jameshow]

" can i hand my notice in when the debts cleared ? " is the talk we had yesterday , you can imagine my response .

I'd suggest going to relate and getting some counselling. It sounds like your both stressed with the situation and work, home and relationship wise and your both struggling to manage it.
You end up drifting apart and without acute intervention I fear for your marriage DAMHIK.

 

[simongt]

She cant just go on burying her head in the sand with all that's going on.

This is one of the long term issues with credit cards. Unless you keep a close eye on your credit card statements, it's very easy to lose track of how much you're actually spending and many folk just pay the minimum amount recommended each month which of course long term, racks up the balance with the interest.
And some then take another credit card out to pay off he existing one and so it goes on.
The problem with credit cards is that it encourages folk to spend money they don't actually have, which is exactly what the credit card companies want.

 

[rogerzilla]

The only way to decide how much lump sum to take (over and above what you might NEED to clear debts) is to make your own assumptions about life expectancy, investment growth, and inflation. Inheritance may also be a consideration. Work out the break-even point. Most financial advisers say about 26 years, so take the lump sum. I came to different conclusions.