pension allowance in redundancy

maidmarian

I'm being made redundant from my current job. I need to decide whether to take the pension allowance now or wait until retirement. Money wise it's 1780of a difference on my payment. Some advice I'm getting is to leave it as it will be worth more to me when I draw my pension but others are saying to take it now as the allowance might not even be available when I retire. I'm 36, so confused as to what to do??

Mrs OBumble

Get yourself some professional financial advice - there's too much about your situation which randoms on the interweb aren't going to know to be relying on advice from here.

maidmarian

Thanks Mrs OBumble, I did have a meeting with the Pensions advisor and his recommendation was to take the lower payment now ie less the 1780 as it will be worth way more to me when i do retire. This makes sense to me but I was thrown off my thinking when a colleague commented how this allowance may not even be available to me in 30 years. Head fried

Xterminator

If you are in a defined benefit scheme, and the scheme is in arrears then you do have reason to be worried.

But a pension advisor is the best thing for you. i spoke to one and he was able to advise me on risks vs benefits, and able to show projected costs/benefits based on different scenarios, and you could work out what the true cost was etc.

I really advise you go to a pension advisor.

CramCycle

+1 on the pension adviser, without very intimate details, noone here really can advise you.

This said I am going to anyway. It is only 1780 in the grand scheme of things. Your 36. probably 30 years to retirement unless your lucky. 360months. it is less than a fiver a month, if you live long enough it may be a gamble worth taking.

maidmarian

Thanks everyone, i spoke to my adviser again and he sticks by his first recommendation to take the smaller value, as if losing my job wasn't enough to have to worry about, thanks again