Pension need to knows Official MSE Guide Discussion

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  • Linton
    Linton Posts: 17,246 Forumite
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    alahol2 wrote: »
    I've had a look round the web but been unable to find an answer.
    I took early retirement on a defined benefit pension from my employer. How safe (or otherwise) is a DB pension in payment?
    What would be the absolutely worst case scenario (other than dying:)).


    On first consideration the worst case scenario would seem to be that your scheme goes bust. But it isnt because of the Pension Protection Fund which will largely or completely cover you.

    Ignoring the chances of global economic collapse or a hostile visitation from the planet Zog, the biggest real danger may be inflation. I guess your pension increases with RPI up to a maximum of say 3% or 5%. So any period of major inflation like we experienced 30-40 years ago could be unpleasant.
  • dunstonh
    dunstonh Posts: 116,655 Forumite
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    edited 21 November 2012 at 1:03PM
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    888z888 wrote: »
    NEWBIE ADVICE . i have not paid into my pension pot fund for 8 years. its held by aviva . 8 years ago it was transfered to them from a previous employer, it totalled £75.000 now (8 years later ) it stands at £79,000 that looks like a very poor return ?? ...VERY POOR...
    how can i improve it . im not planing to pay into it ever again . were do i move it to ?? obviously i just want the best growth and minimum fees.. thank you.

    Please dont post on multiple threads. That is [STRIKE]three [/STRIKE] four times I have seen this message so far.
    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.
  • Machupiku
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    what happens with temp workers and the new auto enrolment. Ive just left full time teaching with decent pension to go temp with an agency. Cannot pay into teachers scheme. Are my new employers going to have to provide a pension, or do i need to look for one elsewhere?
  • Laurad090
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    Im 22 and thinking of starting my pension.
    My work announced they are starting to contribute in 2014. If i start a private pension do they contribute to that? or a separate one? (but all goes into 1 pension pot?) If it is a separate one do i have to put in twice, one with work and one with my private company?
    Am i right in saying they contribute a percentage to what i put in?
    Also when i retire do i receive the £107 (or whatever it is then) per week on top of what i have coming out of my pot per month? Im assuming i will get taxed on this also?

    Sorry if this has been covered or if im totally in the wrong frame of mind with this but would like some confirmation so i can get my head round this pension malarky!
    Thanks
  • nuttydede
    nuttydede Posts: 25 Forumite
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    Hi
    I had a call before christmas from 'the pension review centre @ Covered UK' saying about the changes in Private Pensions and how I can change it to better ones! I have a couple of frozen pensions (11 yrs old) that I do not intend to start up again until I return to work (full time mum at the mo) with the scottish widows. The chap on the phone said the Scottish widows are not performing well and he can send an advisor to my house to review my pensions and if he could find a better one for me to change it to. Busy wrapping presents before my kids came home I accepted an appt on Monday. Now rethinking! Dont really like cold calling or salesmen in my house. Any one had any dealings with them? What shall I do? ASAP on the replies please!!! :j
  • innovate
    innovate Posts: 16,217 Forumite
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    What changes in private pensions were they talking about?

    Who are "Covered UK"? Do you have your pensions with them? Did you ask them to call you?

    If no, don't under any circumstance let them into your house, or talk any further with them. They are most likely scamsters.

    If yes, are the Independent Financial Advisors? Then you could talk to them. But if not, stall them and do find an IFA that you can be sure will advise you properly.

    EDIT: Just seen you did say they cold-called - - so cancel, don't talk to them any more. Put the phone down if necessary. Don't let them into your house.
  • dunstonh
    dunstonh Posts: 116,655 Forumite
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    I had a call before christmas from 'the pension review centre @ Covered UK' saying about the changes in Private Pensions and how I can change it to better ones!

    Be wary of cold calls on pensions. There are a lot of scams out there or dodgy processes where cold calling non-regulated introducers phone up people telling them they can get better pensions or bonuses for pension reviews etc. No genuine financial services company will cold call you.
    I have a couple of frozen pensions (11 yrs old) that I do not intend to start up again until I return to work

    Frozen applies to a specific type of pension and its unlikely you will be able to restart them. I suspect you dont mean frozen.
    The chap on the phone said the Scottish widows are not performing well

    There is your first indication its a scam or dodgy. Scottish Widows pensions do not perform. They are containers for investments. They have multiple contracts offering from a very small range of investments to a near fund supermarket level offering thousands of investments.

    Cancel the appointment and use an IFA of your choice from a local selection. Not some cold calling company who is not regulated or authorised to give pension advice and is already giving you dodgy information.
    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.
  • nuttydede
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    Hi

    Firstly a big thanks for both replying so fast, you confirmed what my inner voice was telling me.

    Can't remember what changes they said now and haven't a clue of who they are as I have had no dealings with them in the past.

    Think pension on hold or something like that until I return to work and can pay back into it.

    My pension is a Scottish Widows Stakeholder Pension Plan, is that not a to bad pension then? As pensions go.

    Cheers again guys x :beer:
  • gotbeef
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    Hi, first time posting on any forum so apologies if I get anything wrong.

    Need advice on pensions. I have a relatively low income under £20K but I work within a local authority and opted out of the pension due to effect it will have on my income. My wife is paying into a sate pension. The problem is I don't plan to stay in my current job therefore no point having the work pension as there pretty is no option to get promotions etc.


    I'm in my thirties and know I should have a pension. I save a bit here and there in an ISA and have started joint 'rainy day savings with my wife' both these are not monthly fixed so we put in what we can afford. I just want a simple straight forward pension that I can I can pay into. That's not going to hit my pocket too hard and where hopefully I can increase what's going in over time if I get a higher paid job. Any advice would be appreciated. Thank you.
  • jem16
    jem16 Posts: 19,404 Forumite
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    gotbeef wrote: »
    Hi, first time posting on any forum so apologies if I get anything wrong.

    Need advice on pensions. I have a relatively low income under £20K but I work within a local authority and opted out of the pension due to effect it will have on my income.

    Really a very bad decision.
    My wife is paying into a sate pension.

    As is everyone who pays NI contributions. There is no other way to pay into a state pension.
    The problem is I don't plan to stay in my current job therefore no point having the work pension as there pretty is no option to get promotions etc.

    There is every point to being in it as you are throwing away free money and a defined benefit pension.
    I just want a simple straight forward pension that I can I can pay into. That's not going to hit my pocket too hard and where hopefully I can increase what's going in over time if I get a higher paid job. Any advice would be appreciated. Thank you.

    The best option is to join the LGPS immediately. Nothing you can do otherwise will come even remotely close to this.
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