Pensions advice sought

Nurselayer

Hi everyone,

I'm hoping that you can give me some honest, straightforward advice.

I'm 35 and have been contracted out of SERPS since I was 18. I am currently employed in a temporary position and earn c. £40k pa. I opened a Scottish Widows stakeholder pension some years ago - but then never paid anything into it. At the moment I have no personal or private pension. I know that I should be looking to pay at least 17% of my earnings into some sort of plan but I'm unsure as to where, which or who with. There's also the chance that my job will become permanent in the next 3 months and if so I'll be entitled to a contributory work pension. I'm also likely to come into a small inheritance of which I'm considering putting £5-10k into a pension.

Here's my question(s) -

1) Should I start paying into my stakeholder pension - if so which provider should I go for?
2) Should I wait until I find out whether or not I'll be getting the permanent job and then start paying into their plan?
3) Should I invest the inheritance into a stakeholder pension?
4) I've heard that it's possible to buy other people's pensions at a greatly reduced rate - is this an option?
5) Can I transfer my SERPs into my stakeholder pension? Or should I be considering contracting back into the state scheme?
6) Can stakeholder pensions be transferred between providers, if so should I start a stakeholder pension and then transfer it into the work pension scheme if I end up permanently employed?

Sorry for so many questions but I know I've left it too long and really want to start paying something in somewhere as best as possible.

Thanks in advance

dunstonh

1) Should I start paying into my stakeholder pension

Maybe. Or it may be better to combine the contracted out pension with your new pension and get fund based discounts with a stakeholder or personal pension. The access to employers scheme in 3 months potentially means making a regular contribution should be held until then.

if so which provider should I go for?

It would depend on how you would intend to purchase, what options you want and how you want to invest.

3) Should I invest the inheritance into a stakeholder pension?

depends on your financial circumstances and what you are looking for from the money.

4) I've heard that it's possible to buy other people's pensions at a greatly reduced rate - is this an option?

You cant buy someone elses pension. Whoever told you that is wrong.

5) Can I transfer my SERPs into my stakeholder pension?

yes

Or should I be considering contracting back into the state scheme?

you are still within an acceptable age to contract out. If the benefits appeal to you then you should stay contracted out. If not, then contract back in.

) Can stakeholder pensions be transferred between providers

all personal pensions can.

if so should I start a stakeholder pension and then transfer it into the work pension scheme if I end up permanently employed?

with just 3 months to go I would wait.

Nurselayer

Many thanks for that dunstonh, much appreciated.

EdInvestor

When you say you have been contracted out since age 18, where have the NI rebates been going? They must have been paid into a pension somewhere - is oit the SW pension? How much is that fund now worth?


Also suggest you check out your state pension entitlement:

https://www.thepensionservice.gov.uk

That will tell you the effect of contracting out. You need to compare what the fund is likely to pay compared with ehat you would get from the second state pension which you are currently opted out of.

This assumes you are not classed as self employed, if you are, then you are not eligible for S2P or contracting out.