Leave British steel pension pay off rental??

gwynny

Hi I'm currently 35 with 16 years of payment into my pension pot (TaTa or British steel pension fund) there is a lot of talk of this pension fund heading towards PPF.

I wonder as I still probably have 35 years to go in the industry if paying off my rental property with this money would be a better investment??

I'm seeing lots of guys at 55 sweating about getting out now, then using their lumper to buy a rental property?

So do I use my monthly contributions towards property or carry on paying

AllyMac

Do you mean stop paying into this pension and use your contributions towards a mortgage on a BTL?

Or do you mean take out the transfer value built up now? Because if you mean this, you can't, at your age. Only age 55 which may rise for your age to 57 or state pension age minus 10 years.

gwynny

Sorry I mean use my monthly contributions to pay mortgage

veryintrigued

Hasn't the reported deficit been slashed hugely?

Surely carry on paying until Tata make an offer to close any gap or any pension changes go to consultation (i.e. before any changes).

i.e. still pay into and accrue benefits of a very good scheme until you know more?

gwynny

It's looking like march time
So getting some info

veryintrigued

gwynny wrote: »

It's looking like march time
So getting some info

March time for what?

What does 'getting some info' mean?

Tata look committed to UK steelmaking for 10 years now.

https://www.theguardian.com/business/2016/nov/25/tata-commit-uk-steel-next-decade

IMO now they're not walking away (big, big issues at Tata group the last few weeks) they'll be more keen to resolve the B.S. Pension scheme in a more amicable way.

In any case pension consultation can take months once started.

gwynny

Inrelevant what

Wonder if anyone have an advice on my future plans thanks

veryintrigued

You drunk?

Good luck with any decision

gwynny

Thanks for your help
For you information informed yesterday regarding unions plans to ballot for industrial action regarding tatas plans for pension scheme

hyubh

gwynny wrote: »

For you information informed yesterday regarding unions plans to ballot for industrial action regarding tatas plans for pension scheme

You should be advocating the union accepts closure of the DB scheme in favour of a decent DC arrangement. The DB scheme will ultimately close at some point, and an emphasis on it will only lead to a situation that overly favours older workers. E.g., keeping a DB scheme open at all costs can lead to measures like caps on pensionable pay increases that favour older members whose basic pay isn't realistically going to rise much before retirement vs. younger members whose basic pay probably will. Also, the longer it stays open, the bigger the chances it falls into the PPF at a later date.

For examples of the above, check out what happened with Royal Mail pensions when the company was privatised -

DB scheme - increases in pensionable pay capped
https://www.myroyalmail.com/pensions/rm-pension-plan

DC scheme - company contributions upped
https://www.myroyalmail.com/pensions/royal-mail-defined-contribution-plan

All in all, the union involved (the CWU) did OK for its members.

That said... while the BSPS is still open to future accrual, I wouldn't opt out. As things stand, the effective employer contribution is a significant part of your total renumeration package, so you would essentially be taking a big pay cut by opting out.