Retiring - Small Aviva Pension Advice

wroughtironron

Hi,


I'm 60 in five weeks and left my employment this week as I'm taking my four final salary pensions from my birthday - these run from my various employers from 1976 -2010, and will give me approx. £17k a year until my state pension kicks in at age 67. I will get approx. £52k from an AVC pot as a lump sum, but I'm taking the DB pensions without lump sums.


I'm married and my wife gets the state pension already, our kids have left home, and our only debt is the mortgage of £87k, on which I'm paying 1.5% interest plus £500 per month of the capital.


I also have a private pension plan with Skandia (now Old Mutual Wealth) which I've been paying £58 net per month into since 1985 (and still am), and now has a value of £42,500.


However, from my employment 2011-2014, I have an Aviva DC pension pot, which I've just received a statement about (and which I'm no longer contributing to) stating that it is worth £10,039 with a transfer value of the same amount. At todays prices, Aviva are saying it could give me a pension of £28 per month.


I don't really want to take the Aviva pension as it is so small. Any advice as to what to do with it would be much appreciated.

Linton

Some of your options are:

1) You can take the whole £10K now as a lump sum, £2500 tax free and the rest taxed as income. You should ask Aviva about this. The option may not be available from them in which case you can transfer the pension to another provider who does support it.
2) Leave it where it is for the time being perhaps using the money to finance delaying your state pension for a year providing an increase of about 5.8%.
3) Transfer it to your Skandia pension.