The Retirement Newsletter: Pension news
Issue Number: 12 — Did I get my pension?
Welcome
Welcome to issue number 12.
This week, I reveal the outcome of my close call with my pension.
Did I lose 12%?
Me and My Pension
Back in issue -0.5 (remember, I was counting down to my retirement, hence the negative issue number) — Have I lost 12% of my pension? — I revealed how I may have lost 12% of my pension.
A quick recap…
My original plan was to retire on February 1st, 2024 (see Issue Number: -9.5), and I had a pension quote for that date, and the figures looked OK. I could just about afford to retire.
When I told my boss my plans, she persuaded me to stay until the end of the term to do some teaching and some assessments. I checked the impact of this change of date using the online calculator on the pension website. The calculator assured me there was no impact, and my pension would increase a small amount for each month I delayed. Hence, I agreed to change the date to early April.
I told the pension company of the date change.
I received a new quote around mid-March and was shocked that my pension income had dropped by 12%.
Twelve per cent.
Think about that.
That is a lot.
For me, it was the difference between retiring and not retiring. I could not afford to take that sort of hit.
After the initial shock, I checked the pension website, and it still gave the same figures as the one I had seen in February. Which was wrong, the letter or the website?
I called the pension company, and they assured me the letter was correct. When I asked where the 12% had gone, they said it was due to changes in the ‘early retirement penalty’ coming in on the 1st of April. This surprised me as it was the first I had heard of it, and it wasn’t reflected in their online pension calculator.
When I pressed them about this, they told me where the information could be found (three clicks down from the homepage) and that the changes were not incorporated into the online model.
Luckily, the HR department at work came to the rescue and moved my retirement date so I hopefully wouldn’t be hit by what I viewed as a hidden and unfair penalty.
And…. This week, I found out I had been successful, and the original pension quote had been honoured as I had officially retired before the changed — a huge relief.
However, the pension company couldn’t even get that right.
The first clue I got that things were moving ahead (although I had no idea what the outcome would be) was a questionnaire asking how the company had performed setting up my pension payments. I didn’t know what they had or hadn’t done at this stage, so they scored very poorly.
A ‘lump sum’ arrived in my bank account five days later. There was no notice this was happening nor indication if it was a lump sum or lump sum plus pension.
A day after the lump sum, a letter arrived explaining what would be happening and when!
You can’t make this sort of stuff up.
Anyway, the bottom line, I have my pension.
So, why am I telling you all this? Well, if there is a moral to this story, it is to stick to your plans, read the small print, and get things in writing. There is nothing new in any of that, but it’s worth remembering.
This week in the Retirement Hustle
In The Retirement Side Hustle this week, I examine YouTube and Side Hustles and argue that YouTube is a great place to launch a side hustle. If you are thinking of starting a side hustle or getting into YouTube, have a look at my other newsletter.
Next week, in The Retirement Side Hustle, I will continue my series of newsletters about YouTube by explaining the type of content you should consider making.
Travel — Nostalgia Corner
This week, some more stories from Hanoi, Vietnam:
Vietnam — Lăng Chủ Tịch Hồ Chí Minh (Ho Chi Minh Mausoleum), Quảng Trường Ba Đình, Quận Ba Đình, Thành Phố Hà Nội, Hanoi, Vietnam — While trying to get a good shot of Ho Chi Minh Mausoleum in Hanoi, I accidentally crossed the line.
Vietnam — Chùa Một Cột (One Pillar Pagoda), Chùa Một Cột (Ông Ích Khiêm), Quận Ba Đình, Thành Phố Hà Nội, Hanoi, Vietnam — Why all the fuss? Why was this building such a big deal?
Vietnam — Bảo Tàng Lịch Sử Quân Sự Việt Nam (Vietnam Military History Museum), 28A Điện Biên Phủ (nr. Nguyễn Tri Phương), Hanoi, Thành Phố Hà Nội, Hanoi, Vietnam — Sadly, it was closed.
Vietnam — Motorbikes of Hanoi, Vietnam — You will need eyes in the back of your head. Watch out for the electric ones.
Vietnam — Street shots of Hanoi, Vietnam — Street photography in Hanoi.
Vietnam — Crossing the road in Hanoi, Vietnam — Easier said than done! And I have a special trick to help me get across the streets.
Next week, stories from Ha Long Bay, Vietnam — what did I think of the bay?
Useful links
UK Government Website:
Next week
Next week, in issue 13, I review my predictions and resolutions in issue -6 — What will 2024 bring? — and reveal which predictions I have got right, and which resolutions I have kept.
Thanks
Thanks for taking the time to read this newsletter, and please don't hesitate to share it with your friends or on social media using the buttons below.
If you want to say 'thanks' for the newsletter, why not buy me a cup of tea?
Until next time,
Nick
PS: If you want to contribute something to the newsletter—a story, advice, or anything else — please get in touch.
Please note: I am not a financial advisor. When I write about money and financial matters, I base my opinions on what I have read over the years about money and retirement preparation. IT IS NOT FINANCIAL ADVICE.