Personal pension matured but not retiring yet.

stilernin

I have paid into a Standard Life personal pension for the last 15yrs or so and the final value is estimated at £42,000.

When I took this out, it was aimed at when I would be 60, which will be in a few months, but a) my state pension will not be paid until I'm just over 61 and b) I will probably continue working after that.

What are my options re the private pension? Can I leave it where it is to grow? Reinvest the lump sum somewhere? Draw the pension and reinvest the monthly amount? I just want to understand my options a little before I speak to Standard Life.

I know I can defer the state pension, which is another thing to think about.

My house is paid for and I have some capital in ISAs, bonds etc.

Thank you for any 'words of one sylable' advice, I've not really looked at this board before so it is a new 'language' to me.

oscarward

Hi, I've just turrned 60 as well.
I'm not an expert but I understand you can defer rather than buy an annuity which is what I did. If you take the pension, buy an annuity and continue working you will pay tax on it. Standard life should write to you with projections for buying an annuity and options available. There are a number of websites who will give a pension illustration for your pot of money as well.

My state pension won't be paid till 65 btw.

If you defer watch out for management charges though, one of my smaller pensions pots was eaten by this :mad:.

I have a number of pensions pots from various companies I worked at as well as private ones, which on the advice of my ifa have been consolidated in to one, which I am paying in to as well. This plan gives me the capability of doing a drawdown pension which suits my lifestyle.

My circumstances are somewhat unusual and what I have done may not suit you so take IFA advice before doing anything, it's money well spent.

Shimrod

stilernin wrote: »

When I took this out, it was aimed at when I would be 60, which will be in a few months, but a) my state pension will not be paid until I'm just over 61 and b) I will probably continue working after that.

Unless there are specific restrictions in place, the age of 60 you gave Standard Life is just a target date so they can give you projections of how much pension you will receive when you retire. If you wish to carry on working, you can advise Standard Life of your new retirement age and continue paying into the pension.

One point to consider is whether you had (and chose) a lifestyle options type fund. With this type of fund, as you near your projected retirement age, the money within the fund is moved from equities into lower risk bonds, gilts and cash funds. The aim of this is that you are unlikely to lose a huge amount of your gains if the stock market crashes just before you retire. If you intend to work on for a number of years, it would be worth reviewing what your funds your pension is currently invested in, and whether it is worth moving to different funds. It sounds like you might want to consult an IFA for advice on this.