I will be retiring at end of next month and have some choices to make. I am in a DB scheme and have to decide whether to take a monthly pension or transfer out all the benefits into drawdown. All depends on how long I think I will live!
I will be seeing 2 or 3 pension consultants shortly and will let you know what I decide as I know it all depends on not only my health but also my particular financial situation and my family circumstances.
Interested in what others have done in the same situation and how many full metal jacket club members we have on BHF?
Many thanks.
Written by
jon22
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Incidentally, you made it sound like you have only two options, DB pension or drawdown. In fact you have many, many more options than that, including an infinite number of permutations and combinations. I'm sure your Financial Advisor will outline the main ones for you.
An actuarial estimate of life expectancy tends to have more significance in the aggregate, in other words estimating life expectancy for a large number of people who share a similar medical condition. When you're talking about just one person, (ie you!), then you have to be very aware that you could be one of the outliers, either dying much earlier or much later than the central prediction. So you absolutely must be careful to run alternate scenarios.
Finally, I've met people (I'm the chairman of the trustees of a DB pension scheme) who deliberately understate their life expectancy in order to justify some crackpot scheme where basically they take their pension pot and blow it on daft indulgences. I won't tell you what I think of them, but hey ho, their money so their choice.
"Cardiologists use the term "full metal jacket" to refer to a long series of stents in one of the heart's three major arteries. Stents are tiny metal cylinders, often with drug coatings, that help prop open arteries to restore blood flow to the heart."
I had 4 stents all overlapping in my right coronary artery. Total length 87mm or around 3.5 inches.
Never heard of full metal jacket club ? Regarding pensions you will have 5 alternative choices. I took early retirement at 60yrs old after working overseas. You advisor will explain options available but cannot advise you on the best for you that is your decision. For me I combined 5 pensions into one and took a drop down option 25% cash tax free and a monthly amount lasting up too 25yrs. But everyone needs and plans will be different. Currently my monthly amount is under the tax threshold but this will change in three years when my state pension starts. Really that is what you need to remember if you intend staying in the UK you will be liable for tax.
Full Metal Jacket threw me as well. I assumed it was open heart surgery rather than the shooting club in Waltham Abbey! A friend's mother is over 40 years post heart attack and a former colleague's father over 40 years post bypass. Both are now fairly fit and in their nineties! The secret seems to be keep moving and exercising, a reasonably healthy diet, healthy weight, and taking the prescribed medication. With diet a decent portion size also seems important. How long will you live - no idea!
Quick Question is how old are you now ?? It is a vital piece of information in your question !!
Got called for Tea. Back now
What I was referring to is how long you have to live to get the maximum return. Take me as an example I was allowed to draw my pension at age 50 and I am 73 on the weekend so I have had 23 years on a very very good final salary pension scheme. Even at £5k per year that amounts to £115k over a few years, so we can be playing with quite decent sums of money !!
Professional advice is required I was lucky my company provided it but it's so important. So watch out there are plenty of people out there looking to part you from your well earned pension so take care and take your time in deciding.
Hi. Thanks for your reply. I am 62 next April and yes agree the numbers are quite decent.
My dilemma at my age and my HA is I am tempted to take the cash out and invest very low risk. Prior to my HA I was always going to take the monthly pension but the HA was a game changer !
Fortunately like you my company pays for the pension advice so will see what they say.
Another consideration in my case I had a H A aged 34 by the way was that should I die my wife has 80% of my pension for the rest of her life. So again a lot depends on your scheme I wish you luck whatever you decide to do !!!
I am a member of the full metal jacket club. I have 3 long stents in LAD and 4 in Right coronary artery with CX 60+% occluded. Remember the cardiologist saying you have a lot of metal work in their, your heart is worth a fortune lol.
Hi, not sure if mine are overlapping or not but I’ve had three fitted, two in my LAD...always makes me chuckle saying that..
Anyway pension wise I retired earlier this year from a DB pension. My advice is to take professional advice and see what is the best fit with your circumstances.
My company arranged a days finance awareness with advisors and you could then get a personal assessment and take up their options or go elsewhere.
There are many options available and I certainly didn’t know half of them.
For me I took 25% tax free then the reduced company pension. Added to that I’ve “levelled up” so effectively get the state pension early, then at 67 my company pension reduces appropriately when the real state pension kicks in; so the total amount I get stays about the same? I’m 59 at the moment and had just over 40 years service, all with the same company.
With the lump sum, invested half with an advisor, and as the mortgage still has 5 years I’ve invested enough to cover that into premium bonds and will withdraw enough for years payments.It’s a bit of secure fun just in case I get the big one.
The kids have drained some of the rest as will a new kitchen and bathroom. Covid has put paid to the lazy holidays and cruise.....
Good luck with the health and pension choice. Ultimately all depends on how long you think up you’ll be alive and kicking.
Thanks Joliv61, I have been in my company DB scheme for 39 years, Cant make my mind up whether to go for 25% tax free + reduced pension or take everything out so its protected for the family? As you say it depends on how long I live! Unfortunately my wife only gets 50% which I think is standard, never heard of Prada47 80% for your spouse!
I will see what my company appointed advisor says and I think I will also see an independent one.
Just had my cardiologist appointment through for early next month and will ask him for his crystal ball assessment and see what he says!
I had the same considerations, full metal jacket and pensions. I opted to take the 25% lump sum and monthly pension as nothing else would pay out an equivalent sum for life. The 25% is now invested thro my financial adviser. Also my wife will be entitled to 50% of what my pension would have been without the 25% tax free lump sum being withdrawn, this is payable for lifetime. Having looked at the options it was a no-brainer at the end of the day, really it's a gamble as to how long you think you will live, stents should give you normal life expectancy. 👍
Thanks Stubax. You are getting me wavering now - I had thought of taking my DB pension out and investing was a real option , but given I am very risk averse I may just stick with 25% lump sum and pension for life.
I will be asking my cardiologist for his opinion of the future when I see him!
Hi Jon, I think you need to assume the stent work the cardiologists have done will do its job and you will keep ticking along for a good while yet. In your discharge letter did they give the final result of the work a grading? After my HA I had a 38mm stent put in the middle of my RCA but at some point it will probably need the 'full jacket'. I was supposed to go back soon after to have a bypass but ended up with a 35mm stent in my LAD 'kissing' another 35mm stent in the opening of my D1 branch. It is not quite a bifurication and not a 'full metal jacket', but it is formally termed a 'complex' PCI that they were very wary of performing. I was having a few problems afterwards and managed to briefly speak to the cardiologist and, though he admitted he had initial concerns over the procedure, he very confidently said "the stenting results are excellent; you are not dying from a heart attack any time soon!". Obviously he will look daft if I drop dead tomorrow but I have to assume he is correct and not let concerns over whether the stents will fail stop me doing from what I want to do. That said, as a side note, I do not remember my dad having a day ill in his life, not even a cold. However, one day at 63 he was jaundice and within a week was diagnosed with bile duct cancer and spent a year almost bed ridden and suffering before passing away. He had done next to nothing in his life, worked flat out for 45 years and had been waiting for his retirement to enjoy himself and do all the thing he wanted to do. Unfortunately, the poor bugger never made retirement and missed out on all the things he had planned because he spent his life planning for a tomorrow that never came. Moral of the story: assume your 'jacket' is doing its job and you are going to be here a while yet, but if you are financially able, enjoy yourself in the here and now because you never know what is around the corner.
Difficult one isn’t it once you’re confronted with your own mortality. Nothing does that better than a heart “event.”
I’m sure the cardiologist will say something along the lines that there’s no reason you shouldn’t have a normal life expectancy - without defining what that is.
I always recall a good friend who sadly passed a few years ago. Probably the fittest and healthiest guy I ever knew. Came in the top 1% of all the company in a health check. Sadly died of a brain tumour.
There are no guarantees and you never know. Whatever you decide, will be the right decision.
I took my 25% as work was needed on my home. The meagre amount left is on drawdown. No way on this earth will I ever take out an annuity - particularly in this financial climate.
A couple of considerations you need to ask the Financial people the 25% is tax free whereas it depends on your Tax position with your Pension when you reach retirement age, as they add both pensions together and tax it as one income !!
The scheme I am in increases by up to 5% per annum to reflect increases in the RPI . Increases in excess of the Guaranteed amount, will be granted if appropriate and will be granted at the trustees discretion with the consent of the company.
Again another consideration lol
Hands Face Space to keep Safe
Just kept reading because I took my Pension at age 50 instead of aged 60 it was reduced by 8.25 %
I will be retiring next September aged 65 and I will be taking my 25% plus a monthly pay out for 10 years on drawdown.After having 10 good years it will be time for the state to look after me having worked for 50 years of my life.God willing.x
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Hello from a new member! :-)
New very worried member
Metal v Prosthetic valve replacement
Not a ‘full blown heart attack’
Celebratory Full English.
