What do I do with my Pension Pots?

Brightspark87

hi

lots of things to note, firstly the deferring of the state pension. Is it really worth it? the government have halved the accrual rate if you do choose to defer, only c 5%. Would it be worth you taking and using this to increase personal pension payments.
with regards to the rest - can I honestly suggest that you look how you take the PCLS lump sum to pay off the mortgage? Perhaps increase repayments before retirement? Good luck though

brewerdave

Brightspark87 wrote: »

lots of things to note, firstly the deferring of the state pension. Is it really worth it? the government have halved the accrual rate if you do choose to defer, only c 5%. Would it be worth you taking and using this to increase personal pension payments.

EH?...as I understand it, the accrual rate for a pension deferred currently is 10.4% and will be for the OP as he reaches retirement age in January. Only changing for people retiring after April 2016 under Govt. proposals.

Brightspark87

April 2015. So first year yes 10.4 but when i spoke to hmrc this drops for everyone.

brewerdave

Brightspark87 wrote: »

April 2015. So first year yes 10.4 but when i spoke to hmrc this drops for everyone.

NOPE! - see
https://www.gov.uk/deferring-state-pension/what-you-may-get

mgdavid

Brightspark87 wrote: »

April 2015. So first year yes 10.4 but when i spoke to hmrc this drops for everyone.

NO!
as above...

atush

Brightspark87 wrote: »

April 2015. So first year yes 10.4 but when i spoke to hmrc this drops for everyone.

You and whoever you spoke to need to read up and not confuse the flat rate SP coming in 2016, with the pension reforms starting april 2015.

Deferrals for those retiring BEFORE the new flat rate comes in 2016 will get over 10%.

LXdaddy

atush wrote: »

You and whoever you spoke to need to read up and not confuse the flat rate SP coming in 2016, with the pension reforms starting april 2015.

Deferrals for those retiring BEFORE the new flat rate comes in 2016 will get over 10%.

Deferals for those "reaching State Riterment age" before 6 April 2016 will contine to increase by 1% per 5 weeks. It is not the actual retirement date which determines the rate of increase.

atush

by retirement date in reference to SP as opposed to private pensions, I meant reaching retirement age.

My point was the other poster was confusing the two- SP after april 2016 with PP reforms starting a year earlier.

Marco_Polo

Thanks to all for your valuable contributions to my original question.


It seems an absolute minefield to me with so many changes taking place right now. I think I will seek the advice of an IFA. What would be a reasonable hourly rate for expert pension advice?

mgdavid

Marco_Polo wrote: »

Thanks to all for your valuable contributions to my original question.

It seems an absolute minefield to me with so many changes taking place right now. I think I will seek the advice of an IFA. What would be a reasonable hourly rate for expert pension advice?

Reasonable to the IFA, or to the customer?