# Should I take my Pension Early



## owen (27 Jan 2012)

I have a Pension Bond with about 100K in it with 10 years to run Should I let it run on in the hope it will increase in value or should I think of cashing it in now and take a Lump sum and a small yearly pension for life. I think I could make better use of the lump sum now than wait for another 10 years.


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## ClubMan (27 Jan 2012)

Not sure that your question can be addressed adequately without more info...

What do you mean by "10 years to run"?
Are you at an age at which you can take "early" benefits from this?
I presume you mean 25% tax free limp sum and then roll the rest into an _A[M?]RF_ or something?
Do you have any other pension cover?
Are you still working?


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## owen (27 Jan 2012)

I am unemployed and the PRB is from a previous Employers Pension Scheme I don't pay anything into that Bond it depends on the market returns. The PRB is due to run to my retirement in 2019 I can take the benefits now if I take a buy out bond. I have another small private pension that will run to my retirement along with the State Pension. My fear is that if I leave the PRB it may go down in value and I would be better off having a lower pension now (that's guaranteed for both my and my wife's life if she outlives me) along with a lump sum that I can use now.


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## ClubMan (27 Jan 2012)

I don't understand. What you have seems to be a _PRB _already so what's the point in switching to another one? A _PRB _is the same thing as a buy out bond as far as I know. And you won't get your hands on any cash from it before 2019 as far as I can see.


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## owen (27 Jan 2012)

The Bond is due to run up to 2019 but I can take a Buy out Bond now which will give me a Lump Sum now and a small yearly Annuity Pension now


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## ClubMan (28 Jan 2012)

Sorry - still don't understand. If you only reach retirement in 2019 how can you take any benefits now? I'm not aware of buy out bonds that give you access to any cash and an annuity as opposed to investing the money until retirement age. You might need to post more specific details about the bond that you hold, the products that you are looking at rolling it over into and your overall personal/financial circumstances.


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## Baracuda (28 Jan 2012)

When Owen left his previous employment he was given a number of options for his Occ pension. He decided to take a BOB aka PRB. The rules of a PRB are different to a Occ and personal pension.

As Owen now has a PRB and is over the age of 50 he can now access his TFLS and with the remainder, he is required to purchase an annuity.

_OR_ if I am not mistaken (and I hope that someone will correct me if I am wrong) Owen can defer buying an annuity for upto 2 years after taking his TFLS so therefore he would have to purchase another PRB with the remainder with a maturity date of 2 years from the date he took his TFLS.

This option was introduced for a two year period a few years ago when the average pension fund was down by up to 45%. It gave retirees the oppertunity to take their TFLS at retirement and give the remainding fund a chance to recover. This option was further extended for another two year period in the 2011 budget.

Owen you can switch funds to a lower risk fund and you should talk to your pension's advisor who can advise you which is the most suitable funds for you based on your objectives. Taking a TFLS and annuity may effect your unemployment assitance and other benefits if you are in receipt of same so there is a number of factors that you would need to consider before you make your decision


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## owen (30 Jan 2012)

Thanks Baracuda


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