Have old pension no idea what to do

cydney65

Total newbie with pensions alert-I do not have the foggiest idea about pensions. If you answer this, can you please explain in really, really basic terms!

I have an old pension from Tesco. I have had it 20 years. I haven't worked for them for 16 years as I left there to join the prison service. I had to take medical retirement from the prison service in 2005 and I get a small pension each month from them.

Now this Tesco pension is with Equitable life. Last year I had a letter, which I ignored as I was a bit scared of money, which says that my with-profits fund is worth £958.64 and that my pension at 65 would be £20 a year! What do I do? Can I transfer this money to some other scheme and if I do, how do I go about it? I'm 48 by the way.

Remember really, really basic replies thank you guys.

atush

I thought Tesco has (or had when you were there) a Final salary scheme?

If so, could this be an AVC (additional voluntary contributions?)

cydney65

Thank you atush...don't know if it is an AVC. I've read this letter and there is no mention of that but it does say that they have assumed that no further contributions will be paid. Could that be it?

The letter basically seems to be pushing you to transfer to to some other investment fund choices whatever that is.

If it is an AVC does that mean I could put more money in it?

atush

Generally not- when you leave a firm you usually can't add to work pensions esp defined benefit ones.

Get in contact with the Tesco pension HR people and ask about your pension from when you worked there. Ask of ran up to date prediction of benefits, and ask for a scheme booklet.

Have you done a search of this forum for Tesco pension?

cydney65

Thank you atush for being so patient with me.

I have been reading around pensions for the last couple of days and now have a fair basic knowledge. I have done a search of this forum and of several pension sites and I have come to realise that I really need some expert advice.

I am a carer for my OH so have very little money (although I'm saving as much as I can at the moment) and I also have a serious medical condition which may limit my life expectancy, so there are these factors to consider when looking at my pension provision.

I will do as you suggest tomorrow and give them a ring. I have also contacted an IFA who is well known to the family and has given some excellent advice in the past, so I know he can be trusted and he may also be persuaded to lower his fees for me :-) Hopefully this can get sorted out. On a bright note I have also discovered that I have over 200 shares in Tesco, so this may provide me with some money to invest.

Thank you again for your advice.

GeorgeCarranza

why dont you look up for the mutual fund and sip investment policies. that would work well here

cydney65

Thank you George

I've had a look at SIPPS and I'm just looking at mutual funds now. I have to admit I'm not even sure a pension is the right way to go. I've read through the ISAs vs pension thread and had a think about my situation. Is this right; if I die before I take the pension, then my beneficiaries will be able to take the sum tax free, but if I manage the ripe old age of 67 and enjoy a couple of years of the pension, then they either get an income or can get a lump sum but pay tax on it?

I could just leave this pension and concentrate on building up my ISAs, both cash and S&S and maybe look at bonds as well, or I take out another pension, transfer the Tesco one over and pay into that.

Oh the IFA recommends that I talk to a specialist pension advisor, so I'm having a think about that. Decisions, decisions.