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Pension plan - help please

andygb
andygb Posts: 14,655 Forumite
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I have a pension plan which started in 1990, and although I have had yearly statements, I really do not know what to do for the best with it.
The total fund value is £45K, but the pension which will be available to draw in 2023 is £1400 per year.
At the bottom is a note saying that the "Plan transfer value" is the same value as the plan shown above.
As this is a miniscule sum per year, would I be better off transferring it to a place where I can use the money better, in order to get a higher return from it?
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Comments

  • jamesd
    jamesd Posts: 26,103 Forumite
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    Is there a guaranteed annuity value or other no longer common benefit associated with this pension? That could substantially increase its value. Given the annuity value it doesn't appear that there is such a guarantee, or if it exists it might not be getting used for the projected income level.

    No way to know what returns it has delivered because we have no idea how much money was paid in and when, so no real way to comment on whether moving it might let you do something to increase those returns.
  • torbrex
    torbrex Posts: 71,340 Forumite
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    The £1400/year will be the projected annuity if you leave the pension with the current provider but with the pension changes you are no longer forced to buy an annuity with anyone.

    It really depends on the annual growth as to whether it is worth transferring, you will then need to consider charges for the transfer as well.
  • andygb
    andygb Posts: 14,655 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I am no longer paying into the scheme, because I have been doing mostly temp/contract work for the past ten years.
    I am wondering if the changes to pensions due to come in next year, will allow me to take the money elsewhere, or even cash it in?
  • andygb wrote: »
    I am no longer paying into the scheme, because I have been doing mostly temp/contract work for the past ten years.
    Please ensure you make pension provision out of future employment.
    I am wondering if the changes to pensions due to come in next year, will allow me to take the money elsewhere, or even cash it in?
    I think you need to answer the question in post #2.

    Is there a guaranteed annuity value or other no longer common benefit associated with this pension?
  • torbrex
    torbrex Posts: 71,340 Forumite
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    andygb wrote: »
    I am no longer paying into the scheme, because I have been doing mostly temp/contract work for the past ten years.
    I am wondering if the changes to pensions due to come in next year, will allow me to take the money elsewhere, or even cash it in?

    I am not paying into any of the 3 pension funds that I hold for the same reason but they are giving slightly better returns now than they have for a few years sot at least 2 will stay where they are.
    I am now over 55 so I will be using the third fund to draw an income from to subsidise my temporary work.

    You dont say your age but I'm guessing at about 48 so you have some time to go before you can do anything similar without incurring penalties.
  • andygb
    andygb Posts: 14,655 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    torbrex wrote: »
    I am not paying into any of the 3 pension funds that I hold for the same reason but they are giving slightly better returns now than they have for a few years sot at least 2 will stay where they are.
    I am now over 55 so I will be using the third fund to draw an income from to subsidise my temporary work.

    You dont say your age but I'm guessing at about 48 so you have some time to go before you can do anything similar without incurring penalties.


    I am slightly older than you Torbrex.
  • torbrex
    torbrex Posts: 71,340 Forumite
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    andygb wrote: »
    I am slightly older than you Torbrex.

    That being the case, you could draw an income from it now but better to wait until April for more/better options.

    PensionWise site has just been launched, it may answer some questions you have although it is very general at the moment.

    A financial advisor is a must I would suggest as you pot will probably need to be moved from your current provider and invested to give you the drawdown option.
  • atush
    atush Posts: 18,731 Forumite
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    If this amount is small now, it will be smaller later when you cash it in and spend it before you are 60. You could be in for a long, poor old age.

    Seems to me that 100+ a month added to your state pension might just buy you a few small comforts?

    In any case, if you are out of work and on benefits you will most likely get nothing from this pension. As taking it would reduce your benefits?
  • andygb
    andygb Posts: 14,655 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    atush wrote: »
    If this amount is small now, it will be smaller later when you cash it in and spend it before you are 60. You could be in for a long, poor old age.

    Seems to me that 100+ a month added to your state pension might just buy you a few small comforts?

    In any case, if you are out of work and on benefits you will most likely get nothing from this pension. As taking it would reduce your benefits?


    We don't get any benefits - no children, a few savings - the usual story.
    If we had knocked out a few children, or maybe never worked in our lives then we may well get benefits, but all we have done is work, contribute, and make sure that others are looked after.:(
  • dunstonh
    dunstonh Posts: 120,185 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I am wondering if the changes to pensions due to come in next year, will allow me to take the money elsewhere, or even cash it in?

    Why would you want to do that?

    Clearly something he made you think about it and you are not alone but most people thinking of doing that dont realise that its likely to be a very bad idea (for you but not other taxpayers)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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