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    • mike L
    • By mike L 9th Sep 17, 10:54 PM
    • 145Posts
    • 39Thanks
    mike L
    Pension Options
    • #1
    • 9th Sep 17, 10:54 PM
    Pension Options 9th Sep 17 at 10:54 PM
    I've just had 2 years temp' work working via an umbrella company and managed to accumulate a pension of £600. (I didn't even know I was accumulating a pension!) It's not enough to retire on obviously. I also have pension from previous employment of about £9000.

    I'm 63 and due to retire (technically) in two years but will be working until I drop which is ok by me. I have nothing but the state pension and the £9000 and the £600.

    To get to the point. What do I do with the £600? The benefit statement says if I'm over 55 I can take up to 25% of the fund. I don't plan to do anything with the £9000 at the moment. I'd like to take the whole 600 plus 9000 if possible though I assume that isn't possible? I'm sure a while ago the chancellor (George Osborne?) introduced legislation allowing people to take all their pension at once.

    Anyway, I'd appreciate some suggestions from the pension experts here.
Page 2
    • xylophone
    • By xylophone 10th Sep 17, 12:09 PM
    • 23,426 Posts
    • 13,622 Thanks
    xylophone
    However, if things have changed recently hence the 'new state pension scheme' you refer to then I'll get a new forecast. I assume I'll only be getting a basic single person's pension anyway whatever that is?
    Not necessarily. And if your forecast is from "a few years ago" get a new one.



    This is old https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

    and the figures are out of date but have a look at "Jenny".

    At the point of introduction of the new state pension (6.4.2016), it was set at £155.65.

    At that point, your entitlement would have been calculated.

    It seems that you would have had an amount comprising full old "basic state pension" plus graduated pension plus SERPS plus S2P.

    This may have been less than/more than/equal to the new state pension.
    Last edited by xylophone; 10-09-2017 at 12:10 PM. Reason: add bold
    • mike L
    • By mike L 10th Sep 17, 12:18 PM
    • 145 Posts
    • 39 Thanks
    mike L
    The reason people are getting a bit insistant that you get a new forecast is that there is no such thing as a "basic single person's pension". The state pension no longer takes account of marital status, and 'basic' has no meaning in this context anymore.

    C
    Originally posted by Chickereeeee
    Right got that.
    • mike L
    • By mike L 10th Sep 17, 12:35 PM
    • 145 Posts
    • 39 Thanks
    mike L
    I have now looked a little further back in your posts.

    http://forums.moneysavingexpert.com/showthread.php?p=63535289#post63535289



    The original company scheme was not in the SHPS DB (or any other DB) scheme?

    It was a DC company scheme?

    The SHPS DC scheme became available and you opted to transfer the old DC into the new DC?

    You left that company two years ago - naturally company contributions ceased but you had the option to continue to contribute if you wished?

    Would it be possible to transfer the "Umbrella" pension to the Aviva policy?

    Would you wish to transfer both policies to (say) a SIPP which would give you the flexibility of drawdown?

    You say that you intend to continue to work for the foreseeable future - you might wish to continue to contribute to the SIPP?

    You might at some stage choose to stop work and live off your state pension and as much of your SIPP as would leave you paying no tax in retirement?

    https://www.pensionsadvisoryservice.org.uk/content/publications-files/uploads/Taking_small_pensions_Detailed_SPOT008_V1.5.pdf

    The above may be worth a read.

    You might find an appointment with Pension Wise of assistance.

    https://www.pensionwise.gov.uk/en/appointments
    Originally posted by xylophone
    The bigger pension (which ran for six years till I left the company, started 2009) was a 'defined contribution scheme' (group stakeholder?) but changed in 2013 to a 'SHPS DC' scheme. The company decided to go that way at the time and we had the option to 'opt in' which I did as we were told it would be better all round.

    Moving the 'umbrella' pension to the Aviva is what I was hoping to do merely because it simplifies things, at least in my head.

    I intend to work until I drop as that's my nature plus as you can see I have no luxury pension to live on otherwise I'd be happy to live an active retirement.

    Is there any point me contributing to any pension at all at this stage? What little I know of pensions is that you have to contribute quite a lot and for long periods to benefit much. I don't earn that much to contribute anyway.

    I'll check the links out. I've got enough info' now (more is welcome) to clarify my position.

    Thanks to all for the info'
    • xylophone
    • By xylophone 10th Sep 17, 1:47 PM
    • 23,426 Posts
    • 13,622 Thanks
    xylophone
    You can contribute to your private pension and receive tax relief up to age 75.

    Let's say you earn £2000 a month - you might choose to contribute £500 a month to a personal pension.

    This would only mean a payment of £400 a month into the scheme as the provider would claim £100 from HMRC.

    Let's suppose you wanted to cease work at age 70.

    You might choose to defer taking your state pension until then.

    Your State Pension will increase every week you defer, as long as you defer for at least 9 weeks.

    Your State Pension increases by the equivalent of 1% for every 9 weeks you defer. This works out as just under 5.8% for every full year.

    The extra amount is paid with your regular State Pension payment.


    Your private pension pot should have been growing over those years to give you a modest income.

    Your state pension and an income from your private pension could give you a more comfortable retirement.

    You may find a local IFA who would be prepared to advise, but you would pay a fee - you may or may not think that this is worth your consideration.

    https://directory.moneyadviceservice.org.uk/en
    • mike L
    • By mike L 10th Sep 17, 5:25 PM
    • 145 Posts
    • 39 Thanks
    mike L
    I was in the company pension scheme for 6 years paying £130 a month and the company equalling that, and this has given me the grand total of £4.90 per week pension. I ask myself was it worth it? I am aware I can still contribute but think it's no use at this stage.

    If I can take as much as possible then at least I could do something with it but receiving less than a fiver a week is almost useless. I won't refuse it but it makes no real difference does it. I'll need to work (which is ok) beyond retirement to have any liveable income.

    I didn't know about deferring the state pension, that's a good point which I'll def' consider doing and seems worthwhile if deferred long enough. Whatever extra amount I accrue is bunged in with the pension when I do take it right?

    I'm not sure how much the private pension will increase over the next few years but it surely won't be that much? As said it's only a fiver a week now if taken as an income.
    • xylophone
    • By xylophone 10th Sep 17, 10:41 PM
    • 23,426 Posts
    • 13,622 Thanks
    xylophone
    http://forums.moneysavingexpert.com/showthread.php?p=29262037#post29262037

    Are you still receiving payments from the "defunct pension"?

    With regard to the "£9000" pension, do you actually have two pensions from this employment, one now with Friends Life /Aviva but formerly AXA and one with SHPS?

    This?

    http://www.tpt.org.uk/docs/default-source/schemes/shps/scheme-info-for-employers-and-members-dc/shps-dc-membership-benefits-employee-document

    You also have the tiny "umbrella " pension?

    I am wondering whether a personal appointment with Pension Wise would help clarify your thoughts.

    But you will not get personal advice from Pension Wise - for that you would need an IFA who would charge.

    Are you receiving annual statements from FL/Aviva or from SHPS?
    • mike L
    • By mike L 11th Sep 17, 9:16 PM
    • 145 Posts
    • 39 Thanks
    mike L
    I'm not receiving anything from any pension. The bigger pension is just sitting there waiting for me. There is only one pension, the Friends Life DC scheme was replaced by a SHPS DC scheme in 2013.

    I still get yearly updates from Friends Life. I see from my last statement July 2017 that Friends Life is now 'part of' the Aviva Group, so I'm still with F' Life.

    The tiny umbrella pension is separate, and as I said I didn't even know I was in any pension scheme until I got the statement in April 2017.

    I have a much better idea now where I stand now and will slowly start to enquire here and there what to do with the pensions. I still don't understand why I need to 'move' the pension to draw some or all of it?

    I sent off my Pension forecast request today so I'll discover what state pension I'l get soon.
    • xylophone
    • By xylophone 11th Sep 17, 11:36 PM
    • 23,426 Posts
    • 13,622 Thanks
    xylophone
    You never contributed to the SHPS DC scheme?

    With regard to the possible need to move a pension, this may be necessary if you wished to use drawdown - older plans may not facilitate this.

    You might wish to contact FL to ask about your options.

    You may find a personal appointment with Pension Wise helpful.

    I sent off my Pension forecast request today
    Come back with the results.
    • atush
    • By atush 12th Sep 17, 1:35 PM
    • 16,333 Posts
    • 10,081 Thanks
    atush
    The reason people are getting a bit insistant that you get a new forecast is that there is no such thing as a "basic single person's pension". The state pension no longer takes account of marital status, and 'basic' has no meaning in this context anymore.

    C
    Originally posted by Chickereeeee
    Exactly. There is a baisc under the old rules, plus andy serps s2p which you probably had. So you might get the new 155 etc after all, or you might get over that.

    You need your foundation amount as of april 2016, and your number of years.

    "Thanks. So I'll need to find out the amount the pension providers will allow me to take. Seems to be 25% on the £600 pension."

    You should be able to take all of this one under small pots rules.
    • mike L
    • By mike L 12th Sep 17, 9:01 PM
    • 145 Posts
    • 39 Thanks
    mike L
    You never contributed to the SHPS DC scheme?

    With regard to the possible need to move a pension, this may be necessary if you wished to use drawdown - older plans may not facilitate this.

    You might wish to contact FL to ask about your options.

    You may find a personal appointment with Pension Wise helpful.


    Come back with the results.
    Originally posted by xylophone
    Yes, I contributed £130 a month and the company the same, so £260 per month for six years from day one till I left.

    As for the little pension, the umbrella company obviously ran a scheme which I was unaware of. I suspect they opted me into this after I started, they also provided a couple of other benefits later on (BUPA membership). They maybe did update me on this but I missed it. As umbrella companies go they're pretty good.

    I'll get back when the State forecast comes.
    • mike L
    • By mike L 12th Sep 17, 9:04 PM
    • 145 Posts
    • 39 Thanks
    mike L
    Exactly. There is a baisc under the old rules, plus andy serps s2p which you probably had. So you might get the new 155 etc after all, or you might get over that.

    You need your foundation amount as of april 2016, and your number of years.

    "Thanks. So I'll need to find out the amount the pension providers will allow me to take. Seems to be 25% on the £600 pension."

    You should be able to take all of this one under small pots rules.
    Originally posted by atush
    Thanks, I'll check that one out.
    • xylophone
    • By xylophone 12th Sep 17, 10:56 PM
    • 23,426 Posts
    • 13,622 Thanks
    xylophone
    Yes, I contributed £130 a month and the company the same, so £260 per month for six years from day one till I left.
    What is puzzling me is that you refer to the DC SHPS Scheme as though it were a continuation of the FL Scheme or as though the FL Scheme were transferred into it, but looking at the information concerning the DC SHPS Scheme it doesn't appear to have anything to do with FL.

    You are sure that you do not have a pension with SHPS as well as FL?

    Or did you transfer out of SHPS into FL?

    With regard to "small pot" had you looked at the links in posts 3 and 19?
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