Inherited pension pots and new pension freedoms

jamesd

With £300k in cash already it seems to me that it is more sensible to leave all of the money in the pension because it's already going to take a long time to get just the cash into a S&S ISA and that has first priority.

Neither FA is exactly wrong now, it's more just a case of relative priorities. I'm less worried about the chance of a restriction in pension money access for you than I am about the tax cost of the income if you take the money out of the pension. So overall I'm more impressed by the first FA and inclined to say that that one is the better choice.

What makes you nervous about the Nucleus wrap? With potentially £700,000 there it doesn't seem like an unreasonable choice. What is the other one proposing?

What else is each of them suggesting so far as a general plan?

kidmugsy

Do you have children to whom you'd like eventually to leave a bequest? The inherited pension might be more tax-efficient for that; you'd have to watch to see whether Osborne's laws on that survive the next government.

That £300k cash sum could be used first to fill ISAs, and even put £2880 p.a. into pensions, and also give you some interest income, and you could spend some of the capital too. Do you have an ill-health retirement pension? Any other income?

I suggest also that you get a forecast of your future State Retirement Pension. It might suggest that a good investment would be buying more years of National Insurance Contributions. That would clearly depend on the nature of your ill-health, and your life expectancy.

Aged

jamesd wrote: »

With £300k in cash already it seems to me that it is more sensible to leave all of the money in the pension because it's already going to take a long time to get just the cash into a S&S ISA and that has first priority.

Neither FA is exactly wrong now, it's more just a case of relative priorities. I'm less worried about the chance of a restriction in pension money access for you than I am about the tax cost of the income if you take the money out of the pension. So overall I'm more impressed by the first FA and inclined to say that that one is the better choice.

What makes you nervous about the Nucleus wrap? With potentially £700,000 there it doesn't seem like an unreasonable choice. What is the other one proposing?

What else is each of them suggesting so far as a general plan?

'Nucleus' just seems a bit obscure compared with household and trusted names like say, Scottish Widows. I worry that our money is 100% safe there. I don't know what the other adviser proposes as we've only had one meeting to discuss things in principle. I guess I need to take the plunge and formally engage one or other of them before they will give me any further or more specific advice.

jamesd

Nucleus is one of the platforms that doesn't market direct to consumers so it's no surprise that you haven't heard of it. It's around the fifth or six sort of level in adviser use, with Cofunds, Fidelity and Hargreaves Lansdown at the top measured by money held via them. Scottish Widows use is pretty minimal for advisers.Nucleus isn't small enough for its size to be a safety concern. Nor would it matter if it went bankrupt because it doesn't hold your money, other than the uninvested cash.

dunstonh

'Nucleus' just seems a bit obscure compared with household and trusted names like say, Scottish Widows.

I would take Nucleus over Scottish Widows every day. Scottish Widows is a big brand but their products have lacked development since Lloyds bought them.

in reality, you probably havent heard of most of the platforms unless you in the insdustry. Nucleus is a well known name within the industry.

Aged

Many thanks for all the help given. I think it's becoming clear now what direction I should take. It has been a very stressful time and I've been struggling to figure it all out by myself. I'm very cautious by nature which doesn't help!

kidmugsy

Take your time. Being cautious is no sin. Coping with financial matters while you are still afflicted by grief is no easy matter. Best wishes.