Advice re: stakeholder pension required!!!

linzwebb

Hello fellow Moneysavers,

I recently remembered about an old stakeholder pension with Aviva (was Norwich Union I think) that I set up through an old job a few years ago.

It doesn't have much in it - and I called them just now and they said I can either start paying back into it, or transfer it to another pension - which I don't have.

Is this the case? Even though there's not much in it at all (approx £1600) I would rather it was being used for something and not just sitting there! If anyone has any ideas or advice I'd be really grateful to hear from you.

Many thanks!

Tammer

Hi,

If you don't have any other pensions elsewhere then your best bet is probably to leave it where it is, for now.

In a few years, you may start up a pension again (if you have a job) and, depending what type it is, you may want to transfer the stakeholder into it.

Just out of interest, how will you finance your retirement if you don't have any pensions other than the Aviva one?

Little_Mankties

Even if you don't currently have a job (not sure if this is case or not) you can still pay into if it is a stakeholder pension.

dunstonh

Is this the case?

Yes. As you would expect, the information given by your pension company is correct.

I would rather it was being used for something and not just sitting there!

It is being used for something. It is being used towards your retirement.

linzwebb

Thanks for your replies - I've been in debt up until very recently so have not even thought about my future - been busy keeping my head above water and food on the table!
I'm very late in starting to now save, and wanted to know if there were any other options as saving has been an alien thing to me for so many years now. The amount of money in my pension is tiny - yet what I really wanted to know is if I had any other options with it... That's all.

Loughton_Monkey

Your small amount of retirement savings is not just doing nothing. It's growing within a pension fund - roughly the same as it would if you transferred it anywhere else. So why not leave it? You certainly can't get the cash and spend it (law).

If you haven't done so yet - having just come out of debt - the best thing you can do now is start to think 'what am I going to live on when I retire?'