The reputation of the so far hugely successful auto enrolment initiative to get people saving for old age could suffer a huge hit if workers belatedly found their entire pots had been eaten by fees.
I am about to retire and I am keeping my final salary pension as I do not like risk.
But I was just wondering, is it more financially viable to take the 25 per cent lump sum (it would be around £100,000) and just put it in a bank account to gain the tax-free element of this?
Or, would the annual rises if it remains part of a pension eradicate this? I do not really need the lump sum.
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Money dilemma: Should I take 25% from my final salary pension, or leave it and get a bigger income during retirement?
Steve Webb replies: You raise an important point about the rather unfair way in which different parts of the system treat couples who live together.
There is however a possible way round this (short of getting married) which you may want to consider.
Starting with the benefits system, this has always looked at people as a household, even if they are not legally married.
The argument would be that if you are living ‘as a couple’, then you probably have joint bills which have to be met from your combined income.
If your joint income is lower than your needs as a couple then you could get pension credit, but you are assessed as a household.
Former UK Pensions Minister Baroness Ros Altmann Joins Cushon Date
04/05/2021
Cushon, the fintech provider of savings and pensions, today announces the appointment of former Pensions Minister, Baroness Ros Altmann, to its advisory board.
Ros was UK Minister of State for Pensions from 2015 to 2016 and is a member of the House of Lords. She is a leading authority and policy adviser on pensions, pension investment, social care and retirement. She is best known for championing pensions for ordinary people, campaigning for better recognition of women’s pension needs and the injustices of the annuities market.
In her new role, she will provide strategic input on Cushon’s proposition and product development, as well as helping to drive positive disruption in the pensions industry.