Baffled

woolly_wombat

atush wrote: »

The best thing to do would be - IF this is his only pension (dont see that you answered that one) to add more to that or another pension.

Then take all pensions at 67 when he retires. They will grow more in the interim, plus you will pay less tax on them then (as he will have a PA larger than his state pension) plus he will be able to use some of your unused PA.

He won't be able to make any further contributions to his ELAS WP policy unless he has invested at least once in every policy year to date (unlikely given the value quoted).

For further information on guarantees, capital distribution etc etc see
http://www.equitable.co.uk/ifa/the-equitable-personal-pension-plan/

WW

atush

So open a personal pension and pay in.

My point was 8K does not a comfortable retirement make.

jamesd

His best option is probably to take it as cash. If he wants it in a pension he can then pay that money as new contributions into a pension and get tax relief on it all on the way in. This will produce more money inside the pension than just transferring it.

Buying an annuity isn't appropriate because he's planning to retire around his state pension age and deferring his state pension would pay something like twice the amount an inflation-linked annuity would pay. Unlike the annuity choice, deferring is a good deal.

woolly_wombat

jamesd wrote: »

His best option is probably to take it as cash. If he wants it in a pension he can then pay that money as new contributions into a pension and get tax relief on it all on the way in. This will produce more money inside the pension than just transferring it.

Even though he's still working and will be taxed on 75% of the fund?

Buying an annuity isn't appropriate because he's planning to retire around his state pension age and deferring his state pension would pay something like twice the amount an inflation-linked annuity would pay. Unlike the annuity choice, deferring is a good deal.

Do you think it'll still be a good deal when he retires in 7 years time?

tkeenan31

If my husband takes this cash does his employer, who claims to know little about pensions cease to contribute further? And will THIS have ay impact on his state pension? And any advice on how to find what my pension pot consists of? Help please, although we are not completely stupid, we are unfortunately, financially uneducated.

xylophone

Do you mean that this is your husband's only pension (apart from state pension) and is the one to which he and his employer are currently contributing?

xylophone

If my husband takes this cash does his employer, who claims to know little about pensions cease to contribute further?

What about auto enrolment?

https://www.gov.uk/workplace-pensions

How old are you? Do you have any pension provision other than state
pension?

Have you and your husband obtained state pension statements?

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

Your husband can book an appointment with Pension Wise
https://www.pensionwise.gov.uk/

zygurat789

tkeenan31 wrote: »

If my husband takes this cash does his employer, who claims to know little about pensions cease to contribute further? And will THIS have ay impact on his state pension? And any advice on how to find what my pension pot consists of? Help please, although we are not completely stupid, we are unfortunately, financially uneducated.

And pensions are a very complicated subject and you have given next to no information.
When this pension was taken out your husband would have been asked for a retirement age, it looks like he said 60 which is why you are getting this list of options now.
Is this pension still being paid into by your husband and his employer, if the employer isn't paying into it it is nothing to do with him. Whatever your husband does with the EL pension will have no effect upon his state pension.
The original purpose of the pension was to provide income in retirement, has this changed?

Goldiegirl

If she was baffled to start with, I reckon she is even more baffled now

xylophone

If she was baffled to start with, I reckon she is even more baffled now

It seems to me that people have been as helpful as possible given the information provided.

The OP has been asked whether or not she and her husband have obtained state pension statements.

She has been asked whether or not the EL Pension is her husband's only pension or if not, what other pension provision he has made.

She has been asked about her age and her own pension provision

She has been directed to information about automatic enrolment.

If she comes back with the information requested, it might be possible to make useful comments?

She has been directed to information about Pension Wise.