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How does pension work?

13

Comments

  • theshed
    theshed Posts: 225 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    I have a final Salary Pension with my current Employer but also three smaller pensions with previous employers.
    I am planning to combine the three into one and possibly add to it. If I do this is it possible to still receive tax relief on the total amount I put in ?
    Any particular benefits in the different type of Pension ?
    Thanks
  • xylophone
    xylophone Posts: 45,757 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    but also three smaller pensions with previous employers.

    What kind of pensions?
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Unless you do it near to the start, you cant generally add old DC pensions on to new DB/final salary type pensions.
  • molerat
    molerat Posts: 35,072 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    theshed wrote: »
    I have a final Salary Pension with my current Employer but also three smaller pensions with previous employers.
    I am planning to combine the three into one and possibly add to it. If I do this is it possible to still receive tax relief on the total amount I put in ?
    Any particular benefits in the different type of Pension ?
    Thanks
    You can get tax relief on any new money you put in, you will not get it on money you transfer in from another pension.
  • theshed
    theshed Posts: 225 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    The three Pensions I would like to combine are The Buy out Policy, which was a Money Purchase Pension, value around £2000.
    A Personal Pension Plan value £2000 and an APP value £22,000.
    I also had an AVC which used up all it's value in costs !
    Ideally I would like to combine these three and contribute toward a single pension, excluding my Employers scheme.
  • xylophone
    xylophone Posts: 45,757 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The Buy out Policy, which was a Money Purchase Pension, value around £2000.

    See post 15. Is there a GMP?
  • theshed
    theshed Posts: 225 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    No, there is no GMP. From what I can see my best option is transferring the three Pensions into a SIPP.
    Hopefully I can then claim Tax relief on future payments. But which one ? ...
  • theshed
    theshed Posts: 225 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Hi, Yes. I was thinking the SIPP was the best way to go. Thanks for the link.
  • theshed
    theshed Posts: 225 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Thanks for all advice received, as of now I am considering two SIPP options.Hargreaves Landsdown which has an annual charge of 0.45% with no set up fee.
    Or Standard Life which has higher charges but also has higher return.
    I am struggling to find direct comparison, does anyone know where or how to compare ?
    Thanks
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