What to do about my pension?

evacymru

Hello, I'm new here and hoping for some help and advice about my pension.

I have been with the civil service for two years and took out a partnership pension with Standard Life - partly because I wasn't sure how long I would stay with the service and partly because I have three other pensions, all sitting in accounts earning what seems to be not much interest!

I am wondering whether the best thing to do is to put the three other pensions into my existing Standard Life account or not?

Also, I recently received a letter telling me that there had been a mistake made with my pension contributions and that they had omitted to pay contributions (from employer and employee) for part of my salary throughout the past 3 tax years! They have sent a form for me to sign - it is to authorise backpayments - I'm not sure whether to do it. Also the letter says that the amounts owing from the first two years from my employers will be paid back to me but this will be taxable!

I'm not sure what to do about either of these two issues and would welcome insight and expertise.

Thanks
Eva

evacymru

Just wondering; if no-one feels able to make suggestions on this - can anyone guide me on how to find free independent financial advice on pensions?

Debt_Free_Chick

evacymru wrote:

Hello, I'm new here and hoping for some help and advice about my pension.

I have been with the civil service for two years and took out a partnership pension with Standard Life - partly because I wasn't sure how long I would stay with the service and partly because I have three other pensions, all sitting in accounts earning what seems to be not much interest!

I am wondering whether the best thing to do is to put the three other pensions into my existing Standard Life account or not?

This requires specific advice as one needs to compare the different features of each pension plan to determine whether the Standard Life stakeholder (Partnership Pension) is better than the others. And then you need to consider if there is any penalty imposed by the other pension plans, when you transfer out. You really need an IFA to advise on this.

Also, I recently received a letter telling me that there had been a mistake made with my pension contributions and that they had omitted to pay contributions (from employer and employee) for part of my salary throughout the past 3 tax years! They have sent a form for me to sign - it is to authorise backpayments - I'm not sure whether to do it. Also the letter says that the amounts owing from the first two years from my employers will be paid back to me but this will be taxable!

I'm not sure what to do about either of these two issues and would welcome insight and expertise.

Thanks
Eva

I'm not sure about this. Firstly, they are telling you that some payments have been missed and they are now going to pay them? The form is for you to agree that your part of the underpayment can be deducted from your pay. If you want the underpayments made, then you have to pay your share, so you should sign the form.

What I don't understand is why they are telling you that they are going to pay the employer's underpayment to you???? Why don't they just pay it to your Partnership Pension account? I think you need to call them to discuss this so you understand what they're trying to do, then post the answer back here so we can tell you what we think.

Regards

Debt_Free_Chick

evacymru wrote:

Just wondering; if no-one feels able to make suggestions on this - can anyone guide me on how to find free independent financial advice on pensions?

www.unbiased.co.uk

Put your postcode in and you'll get a list of IFAs near you

dunstonh

I will warn you in advance that it is unlikely you will get free advice. Although the first appointment will be free, once the IFA is aware what you are requesting, they will almost certainly offer fee only advice. The IFA will incur costs in dealing with your enquiry. It unlikely that they will take those costs without some remuneration. That being said, it would likely only be around £25-£50.

Its one of those cases if you already had an IFA acting for you, you would get the advice for free but for a new relationship, it's unlikely but you never know, you may get lucky.

Debt_Free_Chick

Thanks DD - I failed to spot the word "free". oops!

EdInvestor

Hi Eva

evacymru wrote:

I am wondering whether the best thing to do is to put the three other pensions into my existing Standard Life account or not?

How much money is involved?

If not a lot, you may like to post details of the pension here for a preliminary view (not advice) which might help cut the costs of the IFA fee by spotting areas you need specific technical help with.

Type of pension
Insurer
Fund the money is invested in
Date policy was taken out

for a start.

dunstonh

Actually, having a re-read of the initial post. £25-£50 would just be for the initial information. If occ schemes are involved, then you would be looking at transfer analysis reports which can cost £40-£100 each to the IFA (the IFA is charged these, not you, so they will want to pass that on).

If you then decide to proceed with the transfer, you may be able to do it on commission or fee basis. Which is best will depend on the values, the companies, type of schemes and the IFA themselves. If done on commission, the early fees would almost certainly be waived. If done on fees, you are likely looking at £1000 at least.

If occ schemes are involved, you may not be able to transfer them out without an IFA being involved. Many providers insist on occ scheme transfers being handled by IFAs due to the high risk nature of that transaction and that in a majority of cases it being the wrong action to take.

evacymru

Thanks so much for your help - I'll have another look at these accounts and maybe post up more info here, for people to be able to get a better idea. The idea of the fees is putting me off, somewhat!

Thanks for the advice about the second part of my question - I will get on the phone to them about the backpayments.

dunstonh

The idea of the fees is putting me off, somewhat!

First consultation is always free. Depending on what you have got, it may not cost as much and commission option may be available.

Remember, you may end up saving a lot more than the fee over the term, if fee does turn out to be the only option.