UK Pensions

[merlin]

I commuted my small Graduated and SERPS pension funds (taking the max lump sum and a smaller annual pension payment instead.) I rejected a pension increasing in payment as the reduced pension that would have arisen from age 65 would have taken until I was 92 years old to break even compared with the larger sum received now.

My father died aged 68, and his father died of TB when only 34, though my mother was almost 84 and her mother was 86 when they died. My maternal grandfather was 77, and my paternal grandmother made it to 92.

I decided that the odds were stacked against me profiting from payments increasing in retirement!

 

[Prakhonchai Nick]

I commuted my small Graduated and SERPS pension funds (taking the max lump sum and a smaller annual pension payment instead.) I rejected a pension increasing in payment as the reduced pension that would have arisen from age 65 would have taken until I was 92 years old to break even compared with the larger sum received now.

My father died aged 68, and his father died of TB when only 34, though my mother was almost 84 and her mother was 86 when they died. My maternal grandfather was 77, and my paternal grandmother made it to 92.

I decided that the odds were stacked against me profiting from payments increasing in retirement!

Did you also factor in tax?

 

[merlin]

I did indeed Nick, considering tax on the lump sum (it was a trivial commutation) as well as on the regular pension payment. Naturally, I had to assume that income tax rates would neither increase nor reduce in receipt in order to make a valid comparison. It is unlikely that future changes in the personal allowances would be great enough to affect the calculation.

The level of annuity rates at the time were so meagre that it was a very simple decision to make.

 

[Prakhonchai Nick]

I too took a lump sum from my occupational pension. No SERPS- was contracted out. Taking all into account I would have lost out at 87. Interestingly, after my passing, my widows pension is based on the full pension amount (ignoring the taking of the lump sum)

Unfortunately my lump sum arrived in April 1997, just 2 weeks before the baht devalued. I got an exchange rate of around 40 instead of 60

 

[merlin]

I too took a lump sum from my occupational pension. No SERPS- was contracted out. Taking all into account I would have lost out at 87. Interestingly, after my passing, my widows pension is based on the full pension amount (ignoring the taking of the lump sum)

Unfortunately my lump sum arrived in April 1997, just 2 weeks before the baht devalued. I got an exchange rate of around 40 instead of 60

I also considered using the lump sum (on which there was a little tax due in my case) to make a single payment into a UK pension plan where that payment would benefit from the addition of tax relief paid into it by the taxman, e.g. a lump sup payment (up to the maximum of £40,000 that attracts such tax-relief) means that if the lump sum was say £20,000 then an additional £5,000 - that's the 20% standard rate tax deducted from income of £25,000 - would be recovered from HMRC for the fund by the pension provider. It's one of the few investments available upon which an instant return of 25% can be guaranteed! (less any nominal pension fund charges of course.)

 

[merlin]

The possible reason for the difference between PN's break-even age of 87 and mine of 92 might be that PN opted for a widow's pension. That element of my pension planning dies with me - I wasn't intending to have a wife when my annuity was purchased, - the option of a widow's pension would have reduced the amount that I'd have received each year by a significant amount.

Additionally, it appears that PN made his decision at a time when annuity rates might well have been higher than when I made mine.

 

[Prakhonchai Nick]

The possible reason for the difference between PN's break-even age of 87 and mine of 92 might be that PN opted for a widow's pension. That element of my pension planning dies with me - I wasn't intending to have a wife when my annuity was purchased, - the option of a widow's pension would have reduced the amount that I'd have received each year by a significant amount.

Additionally, it appears that PN made his decision at a time when annuity rates might well have been higher than when I made mine.

Not sure at the time I had the option of buying an annuity. But quite happy with what I have.

Via Thai Widows & Expats, we have assisted 4 widows during the past year. The husbands of 3 had sole life annuities, and with the absense of Bereavement Benefits since April 2017, (2 would have previously qualified for Widowed Parents Allowance), the widows ended up with very very little, especially after in each case splashing out upwards of 150,000baht on the funerals.

To all members I would stress the need to make sure your loved ones, wives, partners and children are adequately provided for after your demise if that is possible.

 

[Yorky]

To all members I would stress the need to make sure your loved ones, wives, partners and children are adequately provided for after your demise if that is possible.

The one thing that I keep repeating to my wife - "there will be no requirement for a Bht 150,000.00 funeral for me". I used to tell her it will be a few grand for the cremation and ten grand behind the bar at FC. Not sure what to do now. Maybe 10 grand behind the bar at Bamboozeled?

 

[Yorky]

The difference between yours and mine probably is the result of me taking my company pension at 50 (almost 51).

 

[CO-CO]

The one thing that I keep repeating to my wife - "there will be no requirement for a Bht 150,000.00 funeral for me". I used to tell her it will be a few grand for the cremation and ten grand behind the bar at FC. Not sure what to do now. Maybe 10 grand behind the bar at Bamboozeled?

Why not put it behind the bar before your demise, so we can all enjoy your company and share the beer with you while you are still (fairly) compos mentos.

 

[Prakhonchai Nick]

Why not put it behind the bar before your demise, so we can all enjoy your company and share the beer with you while you are still (fairly) compos mentos.

Would be a good idea, if it was not Archa that we would be drinking.

 

[Yorky]

Would be a good idea, if it was not Archa that we would be drinking.

I didn't say 240 bottles of Archa, I said 10k. The advantage of Bamboozeled is that they don't sell the hi-so overpriced crap, e.g. Heineken and Singha.

 

[Yorky]

Why not put it behind the bar before your demise, so we can all enjoy your company and share the beer with you while you are still (fairly) compos mentos.

If you could predict when I'm going to die, I could do that. I just hope that it tallies with your prediction of when the pound will hit 50 again!

 

[CO-CO]

If you could predict when I'm going to die, I could do that. I just hope that it tallies with your prediction of when the pound will hit 50 again!

Both events are certain.


I am just not sure which will happen first.

 

[ColinW]

The one thing that I keep repeating to my wife - "there will be no requirement for a Bht 150,000.00 funeral for me". I used to tell her it will be a few grand for the cremation and ten grand behind the bar at FC. Not sure what to do now. Maybe 10 grand behind the bar at Bamboozeled?

And do you think for one minute that she is listening.
It frustrates me to hell to think of the money that will be wasted when my day arrives

 

[Ivor the Engine]

And do you think for one minute that she is listening.
It frustrates me to hell to think of the money that will be wasted when my day arrives

I’ll probably be thrown in the klong with the other dead dogs!


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[Yorky]

And do you think for one minute that she is listening.

Luckily (or unluckily) she has been to a number of Farang funerals only one of which was "over the top". She has "face" of course but she's not from around these parts so I doubt that she will be putting on much of a "show". However, as you say, one will have no control.

 

[Surin]

Why not put it behind the bar before your demise, so we can all enjoy your company and share the beer with you while you are still (fairly) compos mentos.

Then we take you outside and get it done!

 

[Ivor the Engine]

Luckily (or unluckily) she has been to a number of Farang funerals only one of which was "over the top". She has "face" of course but she's not from around these parts so I doubt that she will be putting on much of a "show". However, as you say, one will have no control.

Can I come in fancy dress and keep pointing at people???

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[Yorky]

Can I come in fancy dress and keep pointing at people???

Of course!

If you outlive me!