does anyone understand pensions?

[Samcro]

so lets say you have a small work place pension.
you get to the age it comes out. take part pay out and part monthly pension.
how long do they pay that monthly amount?

Until you die usually.

Depends. Did you convert the remainder into an annuity or is it a simple draw down of the pot at X per month, meaning it could eventually run out?

You need to get financial advice from a qualified advisor. Your options will depend on your individual circumstances.

You don't necessarily need to see an IFA and if it's only a small amount it's not worth paying for advice. In any case, you can get a lot of free advice and guidance from the www.pensionsadvisoryservice.org.uk/ Sometimes employers or unions do 'preparing for retirement' courses that cover this sort of thing, or offer free sessions with financial advisors.

If it's a final salary pension, you get the monthly amount for the rest of your life.

If it's a money purchase scheme, you get an income until the money runs out - you can either take it as drawdown - leave the fund invested and withdraw a bit each month. The amount that stays invested will continue to (hopefully) grow, or at least follow the value of your fund's investment.

Or you can use your fund to buy an annuity. That will provide an income for the rest of your life, but it may be less than if you just draw down the money.

Morbid as it may seem, you need to think about how long you might live. If you're in poor health or are ill, what is right for you might be different to if you're in good health and your family generally live well into 80/90+ age.

thanks
its a pension I paid into over 30 years ago. so anythings a bonus. only paid into it for a few years. so come at a nice surprise.

It really depends on the scheme - a defined benefit scheme will be able to give you a calculation of what you will get which I think is usually for life, a defined contribution scheme usually you use the "pot" to buy an annuity which might only last a set number of years

You’ll have a pensions advisor available. Don’t be afraid to ask ‘silly’ questions. I have an appointment next week to do just this. Got to late 50s and don’t understand some basics. With mine I get a limp d’imams an annual pension also. That is paid monthly until I die. If my dp survives me they will get a proportion of that pension until they die.
Lots of different arrangement around though so make an appointment to speak to someone.

Lump sum not ‘limp d’imans’ ffs.

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