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Pension Advice
Options
Ian9999_2
Posts: 14 Forumite
Hi all
I am looking for some advice as to what my best course of action maybe
I am currently 38 years old and plan to retire at 65, I am a lower rate tax payer
I have in total 3 pensions, although 2 of those are frozen. The remaining one which I am currently contributing £129.04 per month, in addition I have opted out of SERPS which means gross contribution is £165.43 per month.
I have listed the details for all 3 pensions below
Prudential – Frozen, figure quoted as of 16/07/2007
Transfer Value £1867.97
Deferred Pension Value of £140.00 per annum
Littlewoods Pensions – Frozen
Transfer Value £10261.68
Deferred Pension Value of £1409.60 per annum
Zurich Pension – As at 07/03/2008
Current Value £9879.81
Values projected with 5% Growth
Projected fund £107,000
Tax Free Cash Sum £26,900
Plus Annual Pension £3,800
OR
Annual Pension £5,070
With a projected pension in today’s terms of £2,880 per year
Would you advise combining all 3 pensions into a single new pension with a better pension provider, or combining with a current pension provider or do nothing?
If you require any additional info just ask
Regards
Ian
I am looking for some advice as to what my best course of action maybe
I am currently 38 years old and plan to retire at 65, I am a lower rate tax payer
I have in total 3 pensions, although 2 of those are frozen. The remaining one which I am currently contributing £129.04 per month, in addition I have opted out of SERPS which means gross contribution is £165.43 per month.
I have listed the details for all 3 pensions below
Prudential – Frozen, figure quoted as of 16/07/2007
Transfer Value £1867.97
Deferred Pension Value of £140.00 per annum
Littlewoods Pensions – Frozen
Transfer Value £10261.68
Deferred Pension Value of £1409.60 per annum
Zurich Pension – As at 07/03/2008
Current Value £9879.81
Values projected with 5% Growth
Projected fund £107,000
Tax Free Cash Sum £26,900
Plus Annual Pension £3,800
OR
Annual Pension £5,070
With a projected pension in today’s terms of £2,880 per year
Would you advise combining all 3 pensions into a single new pension with a better pension provider, or combining with a current pension provider or do nothing?
If you require any additional info just ask
Regards
Ian
0
Comments
-
Sorry I meant to add, in 9 months time I have an option to join my current employers pension scheme, which appears to be a decent one, and I have listed some key facts below.
Death benefit 4 times salary up to a maximum £105,600, plus a refund of your own contributions to the plan with interest
Your / Contributions Company = Contributions Total
All Members 3% / 5% = 8%
Option available to
members at age of 30 4% / 7.5% = 11.5%
Option available to
members at age of 40 5% / 10% = 15%
Thanks
Ian0 -
Is the Littlewoods scheme final salary? If so, best to leave it.
The other two could be amalgamated.
You could look at transferring them later into your new scheme.Trying to keep it simple...
0 -
Thanks for the reply
The littlewoods scheme when I was with contributing originally it was a 1/60th scheme, then they reviewed the terms and changed all future contributions at 1/70th, with the 1/60th not affected
I have requested a more upto date annual pension value from Mercer, so just waiting to find out
Ian0 -
Can you recomend a decent pension scheme or provider?0
-
OK, leave the Littlewoods scheme where it is as it will be revalued up by inflation until you retire.
More important than the provider is what funds the money is invested in.Trying to keep it simple...0 -
Where you would suggest is the best place to have the money invested
Once i know that i will be able to find a provider0 -
Where you would suggest is the best place to have the money invested
Ask 10 people and you will get 10 different answers.Once i know that i will be able to find a provider
Investing decisions are made on your knowledge, experience, risk profile, timescale and how you intend to review the investments in future. If you intend to invest and forget then you basically have to accept that you will almost certainly get lower returns over the long run and should use more basic investments such as trackers or even a balanced or cautious managed fund (and I dislike those last two but they do have to be used from time to time).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I now have received my statement back from Mercer about my Littlewoods frozen pension scheme, which i written word for word
"Your benefits in the scheme are currently deferred until normal retirement age. The value of your deferred pension at date of leaving the scheme, was £1,409.60
The deferred pension accrued prior to 6th April 2005 will increase for each complete year between date of leaving and Normal Retirement Date, in line with the RPI subject to a maximum of 5% per annum. Your pension benefits accrued after 5 April 2005 will increase in the same but subject to a maximum of 2.5% per annum"
Does this sound ok? and should I still not transfer the funds to another pension?
Many thanks for all of the advice previously provided
Ian0
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