Pension Questions:

magicdogsbrain

My wife worked full time from 1998 until 2003. In 2001 her company started a stakeholder group pension. I think it was a salary sacrifice scheme. The company was friends provident administered by Hargreves Landsdown.

She subscribed in a very small way to that pension from 2001 to 2003, then she left the company to have babies.

In 2007 she rejoined the same company working part time. We tried to continue contribitions into her pension but they told us that this scheme was now closed and part of a global account (there was a new number). She could not contribute to this scheme as it was closed.

However, she could open another pension with F-P and start contributions to that scheme. This scheme was 1% AMC instead of 0.6 AMC.

We asked to transfer the closed scheme funds to the new pension but they advised against it as the closed fund only charges 0.6%.

Question 1:

If we keep the closed fund (its only worth 3k), will we be able to draw on that when she retires and put it towards an annuity along with her other pensions – or will she be able to draw on it as cash?

Question 2:

She has also started a SIPP with H-L, would I be better transferring the funds to that?

Question 3:

Her new group stakeholder pension is salary sacrifice. She is paying in about 200 pounds a month, but her gross salary is only about 16K. I know there is an issue with SS where if you contribute beyond a particular percentage, it affects your state second pension etc. Is she affected by this? This is why I told here to start a SIPP but I am not sure of the exact threshold (and she may already be contributing too much).

P.S. the closed pension is just invested in the generic managed fund whereas her new group pension, we have specified some good funds ( JPM natural resources for example).

Any advice welcome.

magicdogsbrain

Anyone want to comment?

EdInvestor

magicdogsbrain wrote: »

My wife worked full time from 1998 until 2003. In 2001 her company started a stakeholder group pension. I think it was a salary sacrifice scheme. The company was friends provident administered by Hargreves Landsdown.

Where is this pension now?Is it at H-L?

We asked to transfer the closed scheme funds to the new pension but they advised against it as the closed fund only charges 0.6%.

It might be worth paying higher charges if moving it gives acccess to bettter fund choices and more convenience.

If we keep the closed fund (its only worth 3k), will we be able to draw on that when she retires and put it towards an annuity along with her other pensions

Yes

– or will she be able to draw on it as cash?

Might be possible under triviality rules.

She has also started a SIPP with H-L, would I be better transferring the funds to that?

Again fund choice would be bettter, but charges higher.Is the closed pension already at HL?

Her new group stakeholder pension is salary sacrifice. She is paying in about 200 pounds a month, but her gross salary is only about 16K. I know there is an issue with SS where if you contribute beyond a particular percentage, it affects your state second pension etc. Is she affected by this?

Could well be, ask HR for details.

This is why I told here to start a SIPP

Is the SIPP taking conts from her salary?Otherwise it's not relevant.

magicdogsbrain

EdInvestor wrote: »

Where is this pension now?Is it at H-L?




It might be worth paying higher charges if moving it gives acccess to bettter fund choices and more convenience.



Yes

Might be possible under triviality rules.



Again fund choice would be bettter, but charges higher.Is the closed pension already at HL?



Could well be, ask HR for details.



Is the SIPP taking conts from her salary?Otherwise it's not relevant.

1) No its at FP
2) No its at FP
3) We did ask HR and they said "could be".
4) No the SIPP is not taking conts from salary. Why is it not relavant?

EdInvestor

The chpice apppears to be whether or not to pay higher charges for bettter fund choice at either the new FP pension or the HL SIPP. Up to you reallly.

Press HR on the SS issues or you could check with the Pension Service.

The SIPP is a separate investment not related to her work,NI or state pension entitlement