Pension need to knows Official MSE Guide Discussion

Options
145791024

Comments

  • foreverleeds
    Options
    Thank you for your replies, you have explained it sooo much better than the papers they sent to me.I thought it would be too late at my age to make a difference.
  • Bazofts_Revenge
    Options
    Forever Leeds. Do you have any dependants? A Pension scheme like that will payout anything between 3 and 4 times your salary or in real terms £43200 to £57600 tax free lump sum for your dependants. My dad got a driving job with the NHS at about 65 years old and passed away from Lung Cancer whilst still employed at 72. The lump sum my mum got has helped her move home from a 3 story terrace house to a nice bungalow with a garden. There is also a widows pension too so don't discount those other benefits they could give you peace of mind.
    Solar PV cost £5760 (15/03/13)
    FIT inc + Electricity saved £3746 (65% Paid back) Tax free
    Last update 30/09/17
  • foreverleeds
    foreverleeds Posts: 44 Forumite
    edited 24 October 2013 at 8:51PM
    Options
    No dependents, both children grown up and married. just me and the hubby.
  • jem16
    jem16 Posts: 19,404 Forumite
    Name Dropper First Post First Anniversary Photogenic
    Options
    No dependents, both children grown up and married. just me and the hubby.

    Your husband is the person who would receive the lump sum should you die in service. He will also receive a pension should you die first.
  • zaralocke
    Options
    Hi I was wondering if I can get some advice?

    I'm currently working on a temp contract that ends at the end of jan 2014. I'm being offered the NEST pension through the agency with 1% from them and 1-5% from me. I am unsure yet if my temp contract will be extended or if I will get taken on permanently by the company I am working at.

    I'm 28 and earning about £19,500 pre-tax. My question is should I take the NEST pension, and how much should I put in? What happens if I get made permanent in Feb and get the company pension? Will the money paid into NEST be wasted? And the same if my temp contract is extended before becoming permanent? Should I just wait (maybe upto 6 months) until I am permanent and take the company pension?

    Thanks for any advice people can offer me

    Zara
  • [Deleted User]
    Options
    I've been scouring the guides on the site for some help on this, and can't seem to find what I need.


    I have an old stakeholder pension plan which I contributed to over 10 years ago. I haven't touched it since, as I have ongoing pension provision through my employer. I am looking at 20-25 years before I expect to draw anything from my pension, and this old stakeholder plan is too small to be meaningful when I eventually retire. But I am wary of just letting it sit there in case I'm paying over the odds on fees.


    What I'm really looking for is some guidance on transferring or consolidating old stakeholder plans.


    I've been lucky with performance to date, but I'm not expecting wonders in terms of returns, and 0.7% annual management charge is a real drag on the kinds of returns I'm expecting.


    I guess my questions are really:


    1. How do I find out if my current annual management charge is over the odds?
    2. Do I have the right to transfer to another provider who will let me put my fund into a passive fund with ultra low fees, and where would I find such a provider?
    3. Given that this is a small pension pot that I probably won't touch for a quarter of a century and will never have to rely on, should I forget passive and just pay up for an active manager in the hope of a pleasant surprise. (I'm sceptical.)
    4. Should I be trying to amalgamate this with my workplace defined-contribution pension pot, to keep everything in the same place and maximise the chances that someone is actually keeping an eye on it?


    Lots of questions I know. I can't be the only person with some old pension pots floating around and not properly keeping an eye on them. I've been meaning to look into this for years and now is the time. Any input or pointers would be much appreciated.


    Thank you!
  • dunstonh
    dunstonh Posts: 116,675 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    But I am wary of just letting it sit there in case I'm paying over the odds on fees.

    It is a stakeholder. You wont be paying over the odds. You say its 0.7% which is good for a small fund.
    1. How do I find out if my current annual management charge is over the odds?

    its not.
    2. Do I have the right to transfer to another provider who will let me put my fund into a passive fund with ultra low fees, and where would I find such a provider?

    Yes you can transfer if you wish. However, you need to do your own research if you DIY. You would need to research personal pensions and stakeholders to find which is best for you. There is no one best option.
    3. Given that this is a small pension pot that I probably won't touch for a quarter of a century and will never have to rely on, should I forget passive and just pay up for an active manager in the hope of a pleasant surprise. (I'm sceptical.)

    Internal managed pension funds often cost no more than passive funds. So, it is more about where they invest rather than how they invest.
    4. Should I be trying to amalgamate this with my workplace defined-contribution pension pot, to keep everything in the same place and maximise the chances that someone is actually keeping an eye on it?

    if that is the best option for you then yes. If not, then no.
    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.
  • [Deleted User]
    [Deleted User] Posts: 0 Forumite
    First Post First Anniversary Combo Breaker
    edited 1 February 2014 at 11:22PM
    Options
    Here's the thing...

    Sorry, posted this in the wrong place :-(

    Thank you.
  • dunstonh
    dunstonh Posts: 116,675 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    Dont buy into a pension with exit charges if you plan to exit in the short term.

    If you are not exiting in the short term then you will not suffer exit charges.
    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.
  • [Deleted User]
    Options
    Sorry, dunstonh, not sure if your response was meant for me :-)

    I'm hoping my contract will be extended, and the suggestion is it will, but I was just really trying to avoid the tax and (hopefully) get it back at the end.

    I'm required to leave the scheme, once I leave public sector employment, but I don't need to 'cash in' until the end of the 5 year period, I think.
Meet your Ambassadors

Categories

  • All Categories
  • 343.8K Banking & Borrowing
  • 250.3K Reduce Debt & Boost Income
  • 450K Spending & Discounts
  • 236K Work, Benefits & Business
  • 609.1K Mortgages, Homes & Bills
  • 173.4K Life & Family
  • 248.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards