what are the options if I stop paying into a pension?

Prudent

I have a private pension which I pay £300 into every month (plus tax relief). I began the pension in June 2008 and am considering discontinuing the payments this year. What are my options on the money accumulated in the fund? I am 47 this year, so wont be able to draw on this fund for at least 8 years.

This is not my primary pension which is a final salary one.

Aegis

Your current options are to leave the pension where it is or to move it to a different provider. In either case, you should also have the option to tweak the investments periodically to achieve the right level of risk and diversification for your targets.

atush

But if you stop, will you have enough to retire on later at your chosen time?

Prudent

atush wrote: »

But if you stop, will you have enough to retire on later at your chosen time?

Thank you both

Yes I am hoping I will be ok. I have a final salary pension scheme. I am quite frugal, so am not looking for a huge retirement income. At present my scheme is 1/80th plus a lump sum, but will move to 1/60th with no lump sum from 2015. The accumulated benefits remain intact. I am also a really focused saver, so have put aside a good amount of capital for retirement and paid off the mortgage. I am thinking of moving the £300 to an s&s ISA as I am a basic rate tax payer and my employers do not contribute to this pension as they make a good contribution to my main pension.

jem16

Prudent wrote: »

Thank you both

Yes I am hoping I will be ok. I have a final salary pension scheme.

Teachers' Pension Scheme I believe?

At present my scheme is 1/80th plus a lump sum, but will move to 1/60th with no lump sum from 2015.

It will become career average scheme - at present I don't think the accrual rate has been finalsied but I believe 1/57ths was talked about.

I am thinking of moving the £300 to an s&s ISA as I am a basic rate tax payer and my employers do not contribute to this pension as they make a good contribution to my main pension.

It will certainly give you more flexibility. Assuming your Teachers' pension plus state pension makes you a basic rate taxpayer, you would only be gaining the 25% tax-free lump sum by making further pension contributions. Anything else would be taxed at 20% so not really gaining much from the tax relief.