can i start a new pension?

aptuspm

I am over 50 and recently took the cash free lump sums from a number of small pensions I had and now receive small pension amounts each month. However I have been offered a new job with a non -contributory pension scheme as part of the package. Is there anything against starting another pension when you have cashed in existing ones and are receiving monthly payments?
In addition I anticipate leaving this job in 3 to 5 years, I would like then just to take the accumulated money in the new pension as a lump sum , would this be possible or am I doomed to yet another small monthly amount being sent to me. Many thanks for any help.

margaretclare

No, as I understand it following A-day (6th April this year) you can start as many pensions as you like, and there isn't the requirement to take yet another annuity. You can also continue saving into your 'retirement' years and still benefit from the taxman's contribution of 22% (i.e. if you put in £78 a month it immediately becomes £100 which can be invested).

Best wishes

Margaret Clare

EdInvestor

aptuspm wrote:

I am over 50 and recently took the cash free lump sums from a number of small pensions I had and now receive small pension amounts each month. However I have been offered a new job with a non -contributory pension scheme as part of the package. Is there anything against starting another pension when you have cashed in existing ones and are receiving monthly payments?

No problem

In addition I anticipate leaving this job in 3 to 5 years, I would like then just to take the accumulated money in the new pension as a lump sum , would this be possible or am I doomed to yet another small monthly amount being sent to me. Many thanks for any help.

It wouldn't be possible to take it as a lump sum unless the optal of all pensions you have is 15k or less ( Multiply exisiting annual annuity payments by 25 to get total assumed value of pension fund in payment ).

If it is below this amount you could take it in cash after the age of 60.

You could also put the pension into income drawdown instead of buying an annuity.This would involve moving it to a SIPP and then investing it.This would enable the fund to keep growing while providing an income. Of course there could be an element of risk here, depending on what you invest the money in.But it does enable holding onto the capital, albeit you still can't get it out of the pension except as income. But you can pass it on.