pension investment

cliffk

Hi

I have recently reached pensionable age but I am continuing to work.
I had decided to defer my state pention whilst I am still working but now I am thinking about changing my mind.

I have an idea to take my state pension but as I dont need the extra cash I would like to open an account and have the pension paid directly into it each month.
I plan to work for another 3 years health permitting so wouldnt expect to have to touch that money for at least that length of time.
Any advice as to wether this is a good idea? if so any good advice on banks or accounts which would be best.
I still have my ISA allowance for this year.

Eco_Miser

Pay it into a First Direct current account, and from there into a First Direct Regular saver by Standing Order, for 6% AER. Or Club Lloyds for 4%. But deferring your pension by 3 years will add over 30% to each payment, though you would have to wait over twelve years from today for that increment to replace the pension you lost by deferring it. Whether that is worth it depends on how long you will be around to collect.

innovate

TSB Plus, 5%

Daniel54

innovate wrote: »

TSB Plus, 5%

The deferred state pension is 10.4% guaranteed for life.One of the best financial deals available

https://www.gov.uk/deferring-state-pension

innovate

Bit of a no-brainer then.

cliffk

HI yes I have seen that for every 5 weeks you defer the pension you get 1% but I have been told that currently the government are looking at altering that to 10 weeks for 1% which is a 50% drop.


One of my concerns is that should anything happen to me whilst the pension is deferred is that money unobtainable by my wife?


This is what set me thinking that if I draw the pension and pay it into an account with decent interest then at least the money will be there.
Can anyone enlighten me on this?


Regards
Cliff

innovate

If and when they drop the rate to, effectively, 5%, that would for now still be a marvellous interest rate. So I wouldn't worry.

What happens if you die before your wife: read this document, it has all the details about deferring: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/299286/dwp024-apr-14.pdf

xylophone

You have reached state pension age under the current rules.

https://www.gov.uk/deferring-state-pension/tax-and-inheritance

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181235/derived-inherited-entitlement.pdf might be relevant if your wife will reach SPA under single tier.

cliffk

Thanks for all the advice and the links to the publications plenty to go at now to help me decide