Had a good or bad experience with pensions advice or guidance?

atush

Why have you not been saving into a pension since you left?

If you had a DC pension you could live on that til age 60, and take your pension unreduced.

People with DB pensions who want to retire before scheme age, should run DC pensions alongside for this purpose.

flyforfun

My other half recently left work due to the stress they were placing on older workers there. He is in his early 60s and thankfully had a DB scheme for nearly half his working life. However trying to find out what to do with the DC pots was time consuming.

His company actually offered a pension advisory type service, however when he rang them, they were of no help as they said they don't advise, only tell you what's on offer.

He rang the official Pension Advisory Service who were of no additional help.

One of my colleagues at work was seeing a financial advisor about savings and mortgages and I got referred to them. They have been of fantastic help on collating all the various pension pots and are able to go round to the annuity providers with the final sum to get the best value offer from them all. And then going back again to see if they will improve their offer. The fee for this was going to be around 2.7% of the investment pot, but now they are saying the annuity providers will pay them.

My partner is quite confused by it all as he's not particularly financially minded and if he was on his own he'd be at the mercy of charlatans. The meeting with the financial advisor was brilliant as he was able to explain things to him in simple terms, find out what he wanted to get out of his retirement and explained the process of contacting the various pension companies to collect info and get the best offer. Even though I consider myself reasonably money savvy, I'll be using this company to help me plan my finances going forward for a small annual fee.

Bronniedog

I retired 2 years ago and took advice. I think that I got the best deal but still got stitched up by Pearl (or whatever they are called this week). I have long advocated a Pensions ISA which would be like a normal ISA but you would get tax relief on it, not just getting interest tax free. Drawing on it would be frozen until the age of 55. After that you could draw up to 10% per year, buy an annuity or let it accumulate. You would know exactly how much it was worth at any time. If drawing down, the residue, on death, would go into the estate and you would know just how much you were being stung for fees at all times. Yes a very simplistic approach but a starting point to build on a better system than was we have now!!

jem16

Bronniedog wrote: »

I have long advocated a Pensions ISA which would be like a normal ISA but you would get tax relief on it, not just getting interest tax free. Drawing on it would be frozen until the age of 55. After that you could draw up to 10% per year, buy an annuity or let it accumulate. You would know exactly how much it was worth at any time. If drawing down, the residue, on death, would go into the estate and you would know just how much you were being stung for fees at all times. Yes a very simplistic approach but a starting point to build on a better system than was we have now!!

That's what is already available and has been ( although you wouldn't have been able to drawdown as much as 10% ) since 2006 with pensions.

From April 2015 you can now drawdown as much as you want.

jem16

flyforfun wrote: »

The fee for this was going to be around 2.7% of the investment pot, but now they are saying the annuity providers will pay them.

The fee can be paid by cheque or via the annuity. If taken via the annuity the rate will be lower but it may be a better method as, I believe, it saves on VAT.

dunstonh

I retired 2 years ago and took advice. I think that I got the best deal but still got stitched up by Pearl (or whatever they are called this week).

Pearl have only ever had two names. Pearl and now Phoenix.

I have long advocated a Pensions ISA which would be like a normal ISA but you would get tax relief on it, not just getting interest tax free. Drawing on it would be frozen until the age of 55. After that you could draw up to 10% per year, buy an annuity or let it accumulate.

What you describe is a pension under the old rules. although just a bit short of 10% possible.

If drawing down, the residue, on death, would go into the estate and you would know just how much you were being stung for fees at all times.

is that because you wish to increase the tax take on the pension? Currently, pensions are outside of the estate. Bringing them into the estate would increase IHT.

Yes a very simplistic approach but a starting point to build on a better system than was we have now!!

Its barely any different to what we have now except you bringing in a cap on the withdrawal and increasing the amount of tax payable on death. Everything else exists already and has mostly been that way since 2006.

The fee can be paid by cheque or via the annuity. If taken via the annuity the rate will be lower but it may be a better method as, I believe, it saves on VAT.

it can save on VAT for firms that break down their service into chunks. However, the main saving is tax relief. £x taken from the pot has has had tax relief on it. If the fee was £1000 you could pay it directly but you would be better to pay an extra £780 into the pension. Get £220 tax relief and have the £1000 taken from the pension to pay the advice fee.

CAROL_CONEY

Hi
I have never taken part in anything like this but I feel so strongly about the government putting off the retirement age for receiving state pension.
When I started work I was given the option of signing up for what they called the married womens stamp
at a much reduced rate on the understanding that I would not get a full state pension at the age of 60.
I decided to go for the full contribution stamp (which I struggled to pay) in order to receive a full state pension at 60.
I have 42 years contributions of the full tamp.
I am 60 this year.
No pension. The government has said I must wait another 6 years until Sept 2021 to get my pension.
Surely this is wrong. I thought that I had entered into a contract with the Government that if I paid the required amount they would pay me a pension at 60.
I wasn't given much notice and am now considering my options. Should I sign on jobeekers I need an income but feel I am too old to have the added pressure of going on courses etc.
Whilst on the subject of benefits I was astounded to find that when my husband died last year widows pension is not now long term but only for 52 weeks. My husband died at 66 having only taken a years pension which he paid in for all his life and I am told that I am not entitled to a payment from this either as ued to be the case years ago.
I am not the only one everybody my age must wait another 6 years which is not too bad if you have a private pension but when you were relying on just state pension this is very hard.
I would like to know if there is any way of challenging this delay especially having 42 year contributons.

greenglide

Paying the "big" stamp gave far more than just entitlement to state pension - it also gave entitlement to sickness and unemployment benefits.

Of course you cannot challenge the change to the pension age which was done over 15 years ago.......

xylophone

I wasn't given much notice

Not quite true - http://www.web40571.clarahost.co.uk/statepensionage/SPA_history.htm

Some information about the new state pension

https://www.gov.uk/new-state-pension/overview

You can only claim JSA if you are actively seeking work.

dunstonh

I have never taken part in anything like this but I feel so strongly about the government putting off the retirement age for receiving state pension.
When I started work I was given the option of signing up for what they called the married womens stamp
at a much reduced rate on the understanding that I would not get a full state pension at the age of 60.
I decided to go for the full contribution stamp (which I struggled to pay) in order to receive a full state pension at 60.
I have 42 years contributions of the full tamp.
I am 60 this year.
No pension. The government has said I must wait another 6 years until Sept 2021 to get my pension.

The female state pension age was changed 20 years ago. All the last Government did was bring forward the increase from 65 to 66 by a short period and 66 to 67 a bit earlier as well.

Surely this is wrong. I thought that I had entered into a contract with the Government that if I paid the required amount they would pay me a pension at 60.

Show us your contract.

I wasn't given much notice

20 years notice is plenty good enough.

I would like to know if there is any way of challenging this delay especially having 42 year contributons.

None whatsoever. Be thankful your state pension age is 66. Some readers on this board wont get theirs until 67 or 68 and with the life expectancy changes, the younger readers may be lucky to get theirs at 70.