How do penions work once you retire? Using the last scenario here I have about a million squid accumalated, how is that then redistributed back to me?
Secondly, a million (on the high interest scenario of course) pounds seems like rather a lot. I have no idea what's a reasonable size pension pot though.
To be blunt, you're not going to be able to access your pension for 35 years. They're planning on changing the way you can take your pensions later this year, well the tax position on the way in and the way out, so fuck knows what it'll be like then. There's no way it'll be the same.
Fuck me are pensions purposefully obfuscated so that nobody understands them ?
I only just started mine, paid in twice, for some reason my place of work puts in 100 pound a month and it all goes to some group called Blackrock who keep putting it in stocks.
The rules are complicated and subject to change, but basically:
You can take up to 25% of the money as a cash lump sum and buy an annuity with the rest. An annuity is a bit like a reverse life insurance policy that pays out a fixed amount every month for the rest of your life.
The amount paid out by an annuity depends on the age at which you retire and your health. A £100,000 bought at age 65 currently gets you about £2,800 per year adjusted for inflation. That amount is likely to fall as life expectancies increase. Your million pound pension pot should provide a comfortable retirement, but it won't make you rich.
You can just take money from your pension fund (drawdown), but that's a risky strategy as you could run out of money.
So I worked in the public sector for a year and got started on a cushy state pension. Now that I have left that position they've told me to transfer it. I have no idea what I'm doing. Though I read that if I join the public sector within 18 months I can go back onto the scheme.
Any advice? Besides go back into the public sector.
