Stakeholders Pension After 60

Lost_Soul_5

I am 60 years old and have recently taken a level annuity from my company pension. During the process I had a complaint with my IFA and was offered and accepted a lump sum of £2000 as a "gesture of goodwill." I now wish to invest this money (plus perhaps a regular monthly amount) to cover future inflation, say in 8 to 10 years time. In addition to my annuity, I receive a good state pension (inc SERPS), am a basic rate tax payer and neither my husband nor I would be entitled to pension credits.

My question is: Would it be beneficial to start a Stakeholders Pension to take advantage of the tax break especially as there now appears to be more optimism in the stock market?

Thank you in anticipation of your replies.

dunstonh

Would it be beneficial to start a Stakeholders Pension to take advantage of the tax break

personal pensions are very common for the already retired. The benefits can be very useful. Especially where income is lop sided with a spouse/partner or you want to effectively give yourself an increasing income later in retirement.

especially as there now appears to be more optimism in the stock market?

Obviously the pension itself has nothing to do with the stockmarket. However, if you choose to put stockmarket investments inside of the pension then you will get returns linked to the stockmarket. In the same way you would get returns appropriate to cash if you used a cash fund or fixed interest securities if you used those or property etc etc.

Lost_Soul_5

Hi - many thanks. I was thinking of a managed fund with NU whose charges are pretty good I understand.

dunstonh

The Aviva personal pension is better than the stakeholder as it has a wider fund range. However, the stakeholder is one of the better ones. If it offers you the investments you want then its fine.