stakeholder pension

xylophone

I am a housewife and have basically not paid into any company pension pots... I didn't work

Are you employed now? Does your employer offer a pension scheme?

hostertlady

xylophone wrote: »

Are you employed now? Does your employer offer a pension scheme?

hiya, I have a little cleaning job a few hours a week( .. but no pension pot with this one)
x

Russe11

worried_jim wrote: »

I am transferring it to another pension scheme and being paid £11,948 to do so.

One way of putting it, clearly its more of a surrending the benefit of the current scheme for a fixed sum.

Bit like having the choice of £12k today or £3k a year over the next ten years.

xylophone

I know that because of my DOB I cant start drawing my state pension till I am 68!

If you are 56 (born 1958) then your SPA will be 66?

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

Have you checked your eligibility for the new state pension?

https://www.gov.uk/new-state-pension/overview

You are aware that you can pay up to the total of your earnings (before deduction of personal allowance) into your stakeholder pension- your pension provider will claim the tax relief. For every £80 paid into your pension HMRC will add £20.

If you have no earnings, you can still pay up to £2880 per tax year into the pension and HMRC will add £720.


You might prefer to continue to contribute to the pension until you need to access it?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301563/Pensions_fact_sheet_v8.pdf

Arfermo1

I am completely befuddled about my wife's L&G Stakeholder Pension fund. She was 74 last month, the fund is worth circa £61,000 (and going down lately) and we want to take as much cash as possible before it is too late. We have more than enough assets and income already for our needs for as long as we are around, even though my wife's income, including share/ISA dividends and BS interest etc are within her Personal Tax Allowance. L&G say that the Stakeholder policy does not allow any drawdown facilities and they will not commit themselves as to what they might have to do when the new rules re drawdown announced yesterday come into effect. As I read the new rules, drawdown or encashment should be available whatever the original terms of the policy but no doubt they will find a way around it. L&G say that my wife can transfer the funds into another type of policy that allows drawdown but they will only accept any such instruction via an IFA. I don't like IFAs and have self invested and managed all our financial affairs without any IFA for some 14 years now due to the cartel like system that operates and the exceedingly high charges they ask for.
A local IFA is now asking for £750 for putting her name to a simple transfer to another provider with a more flexible policy and attitude. Anybody got any views or advice or an IFA who is likely to be more reasonable that we can use - if so Telno please? We are in Shropshire but for this trivial exercise we don't care where the IFA is. Thanks.

hostertlady

xylophone wrote: »

If you are 56 (born 1958) then your SPA will be 66?

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

Have you checked your eligibility for the new state pension?

https://www.gov.uk/new-state-pension/overview

You are aware that you can pay up to the total of your earnings (before deduction of personal allowance) into your stakeholder pension- your pension provider will claim the tax relief. For every £80 paid into your pension HMRC will add £20.

If you have no earnings, you can still pay up to £2880 per tax year into the pension and HMRC will add £720.


You might prefer to continue to contribute to the pension until you need to access it?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301563/Pensions_fact_sheet_v8.pdf

interesting..... better return rates than an ISA.....

kidmugsy

Arfermo1 wrote: »

I am completely befuddled about my wife's L&G Stakeholder Pension fund. She was 74 last month... and we want to take as much cash as possible before it is too late. We have more than enough assets and income already ...

Before what is too late? Why do you want to take the cash if you already have enough?


Anyway, if you want to leave L & G, I suggest you phone another provider (I like the service at Hargreaves Lansdown) and ask them whether they can arrange a transfer for that Stakeholder without need of an IFA.

worried_jim

hostertlady wrote: »

hiya, just a quick question, I know your sceme is different to mine but are you still paying into yours?
x

Not this scheme, it was an employer I left in 1999. I also have a personal pension worth about £20k that I no longer pay into. Currently I am saving 18% of my salary into my current employee scheme with the bank I work for.

I have always paid into a pension(s) since leaving school and I am 40 now so have 20 years savings behind me. Once a year I sit down and get all the paperwork together form my providers so I a good idea of how things are proceeding. I also use a pension calculator to give me rough indications of the direction I am going in.