advice about my pension please

nikanika0

Hiya,

I've got my pension with Aviva from my previous employment some defined scheme. I haven't contributed to it since Dec 2012. It means that I don't have any pension contribution at the moment, I am working but did choose not to join.
I get yearly statements and this one showed that my pot did grow by 12% after charges - 0.95%. It's 30-30-40% distributed in 3 funds I chose years ago.
I am really thinking going SIPP and starting contributing again. Should I do it, I read about it a lot but I'm bit unsure.

dunstonh

I am really thinking going SIPP and starting contributing again. Should I do it, I read about it a lot but I'm bit unsure.

SIPPs are an advanced product for experienced investors looking for more advanced investment options that are not available on stakeholder pensions or most personal pensions.

lets take it back to basics. Why do you think a SIPP is suitable for you?

nikanika0

Your question made my google Sipp pros and cons again. I thought I could have more control of how much I contribute and what funds to choose from. I really don't want to join my company pension, I'd feel restricted by them taking my money every month. It may sound very paranoid but I wanna be the one who makes decision.
And I don't know whether ordinary pension providers will give me this flexibility and freedom.

xylophone

Do your employers contribute to the pension? If they don't now they will have to soon.

You are in effect taking a salary cut if an employer contribution is available and you are not in the pension scheme?

Could you not contribute enough to get the employer contribution and then to a personal pension of your choice?

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

nikanika0

I work for Royal Mail, the company does contribute, they have introduced PSE but people could opt out of course. My problem is that I don't want to contribute monthly at all, but only when I feel like let's call it payg, but this approach goes against the idea of having pension where people save regularly. I can't close my pension account if I could I would.

dunstonh

I thought I could have more control of how much I contribute and what funds to choose from.

SIPPs do not change the control over contributions. Indeed, the most flexible type of pension on contributing is a stakeholder pension.

As for investments, yes, SIPPs do offer the most but do you need that?

I really don't want to join my company pension, I'd feel restricted by them taking my money every month.

Which is a very bad decision and one that makes you an opt out and many pension providers will refuse to accept business from opt outs.

It may sound very paranoid but I wanna be the one who makes decision.

Even when your decisions are crazy?

I can't close my pension account if I could I would.

You cant close any pension.

To be honest, you seriously need to join the Royal Mail pension and put this silliness to bed

atush

Join the work scheme. It was very silly to opt out. You are throwing away free money.

Do this now. Like tomorrow.

jem16

nikanika0 wrote: »

I work for Royal Mail, the company does contribute,

How much does your employer contribute?

Which scheme could you have joined if you hadn't opted out?

My problem is that I don't want to contribute monthly at all, but only when I feel like let's call it payg, but this approach goes against the idea of having pension where people save regularly.

Contributing monthly will mean you just pay directly from your salary and can forget about it - really the best way to go.

However more importantly you are throwing away "free" money from your employer. This is really daft.

patanne

They must love you. Taking a pay cut that they are not even allowed to suggest you take. I may be paranoid but I'm not stupid. I'd be snatching their hand off. You should do the same. There will be no pension credit when you retire, that is what this new state pension is about. So what do you plan on living on. Look at the panic people are going through that are living on benefits now. Do you really want to be that person? Even into your eighties?

The above may sound harsh, but I really hope it makes you think. I don't know much about pensions but I do know that if you don't have one your options in retirement will be limited and limiting and retirement is expensive as you have much more free time.

xylophone

PSE (aka salary sacrifice) and you aren't a member of the pension scheme?

https://www.myroyalmail.com/news/national/2015/06/pse-how-it-works

"As eligible employees start to receive their formal invitation to take part in pension salary exchange (PSE) at their home addresses, here’s a step-by-step overview of PSE:

1. If you are eligible, you are automatically enrolled into PSE, unless you tell us you want to opt out.

2. When PSE launches, you no longer make a personal contribution to your Royal Mail pension. This means contributions coming out of your weekly or monthly basic pay (see jargon buster) stop. Your basic weekly or monthly pay is reduced by the amount equal to the contribution you currently make to your Royal Mail pension. This includes any Additional Voluntary Contributions (AVCs – see jargon buster) you may be paying.

3. We pay an increased employer contribution so that the amount paid into your pension is the same as before. The payments column of your payslip will start showing your basic pay and the PSE adjustment (see jargon buster).

4. Because your basic pay has been reduced, you will start paying lower National Insurance contributions (NICs), if you pay NICs. Your take-home pay increases by the same amount as any NICs saving you make.

PSE has no effect on your pensionable pay."

Are you trollling/ being provocative for the sake of it?

jem16

jameskevill wrote: »

It is free to get your pension reviewed,

No it isn't.

My job is to introduce clients to regulated IFA'S and if anybody from this forum would like to get their pension review please feel free to contact me directly by telephone or email, (text removed) That is my business mobile and personal email, if you would like the business email just ask. Thanks.

On this forum we like to warn people about cold callers such as yourself promising free reviews.

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