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Any chance of early retirement
Comments
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someone told me that I cant have both a works pension and a separate private pension - is that correct.
No it's not. I'm sure someone will correct me instantly if I'm wrong, but I don't think there's any limit to the number of pension pots you can have as long as you don't exceed the lifetime limits. As you're currently looking at £70/mth total contributions, that doesn't look likely
As a comparison, I pay about £135/mth into my pension and I'm 12 years younger than you. If you're expecting pensions to provide most of your future income you need to pay as much as you can afford to, not as little as is possible.
What basis is your pension scheme set up on? I.e. does your employer match your contributions? If so, up to what percentage?
Also, do you know what age you can draw your pension from (even allowing for a reduction if you retire early)? If it's 60 or higher you'll need to build up additional investments to tide you over for the period between early retirement and claiming any pensions.0 -
You can have an unlimited number of different work and personal pensions today.
It used to be true that you couldn't have both work and personal pensions unless you earned under £30,000 a year but that changed on pensions A-day on 6 April 2006.
Today you can do things like using different pension plans for different types of investments to get each type at the best price and combination of features. You may also be able to do periodic transfers from a work pension to a personal pension if that interests you, the rules depend on the specific work scheme. It's potentially useful if you get cheaper or better investment choices in a personal scheme but save NI by contributing to a work scheme via salary sacrifice.0 -
No it's not. I'm sure someone will correct me instantly if I'm wrong,
You are correct. 2001 abolished it for all but final salary schemes. 2006 abolished it for them.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I can see where my friend got the wrong end of the stick with the pension thing now. I think in that case I will definitely look at setting another one up now and increasing the works one0
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