Pension pittance - best way forward

purple_window_shopper

Hi, my husband has had a few jobs over the years, he is quite 'relaxed' when it comes to sorting out his pension so I am doing some research to push him along!
He has 3 company pensions, none of which have a great deal in them. He also worked at a company for two years without any pension and has just taken a new job which doesn't have a pension scheme.
My husband is now 56 and I would we really need to sort out our finances but I have no idea where to start with the pensions.
1. Is it worth collating the three pensions he has?
2. How do I go about it?
3. Is it better putting it into some sort of savings plan?

Any advice gratefully received!
Thanks

xylophone

has just taken a new job which doesn't have a pension scheme.

https://www.gov.uk/workplace-pensions/joining-a-workplace-pension

By 2018 all employers must provide a workplace pension scheme. This is called ‘automatic enrolment’.

Is it worth collating the three pensions he has?

What type of pensions are they?

His (and your) state pension?

https://yourstatepension.campaign.gov.uk/?utm_source=Mail-Online&utm_medium=Partnership&utm_campaign=GTKY

Does he need professional advice?

https://directory.moneyadviceservice.org.uk/en

GDB2222

purple_window_shopper wrote: »

1. Is it worth collating the three pensions he has?

You could look at how they are invested, what the charges are, what the early surrender discount is, if any. If you have to pay someone for advice, it might not be worth it. If you can do it yourself, with free advice from here, it might be.

Simply collating the pensions for the sake of tidiness, without making the analysis, could diminish value.

dunstonh

1. Is it worth collating the three pensions he has?
2. How do I go about it?
3. Is it better putting it into some sort of savings plan?

1 - It is vital to know what you have and what it is going to do. Consolidation may or may not be suitable but until you know what they are, you are never going to know
2 - Either do it yourself or use a local IFA.
3 - Almost certainly not. Pensions are tax efficient and get tax relief. The investments you would typically use in a pension would be expected to significantly outperform cash savings.

LHW99

With regard to your point 3, although he could access the pensions now, it would trigger a tax charge if he took more than the tax-free lump sums, so could push him into higher rate tax, depending on the amount(s).
Also, if he took more than the tax free amount from a DC pension, it would limit the amounts he could put in a pension going forward.
If any of the pensions are DB, then he would probably need advice to transfer which would be costly.

purple_window_shopper

xylophone wrote: »

https://www.gov.uk/workplace-pensions/joining-a-workplace-pension

By 2018 all employers must provide a workplace pension scheme. This is called ‘automatic enrolment’.

Apparently it's a newish company and they don't have to do it he 😕. I think it's the kind of company that will not do it until it is forced into it. It's a small, local company.

What type of pensions are they?
I am embarrassed to say I don't know. He never reads the letters or updates (I know-shocker,) so I am trying to sort it out. I will have a read through them. They are all from large corporate companies.

His (and your) state pension?
I have been a Carer for 30 years so don't have a work pension, just one tied to careers allowance.

https://yourstatepension.campaign.gov.uk/?utm_source=Mail-Online&utm_medium=Partnership&utm_campaign=GTKY

Does he need professional advice?
HELL YES. Thanks I will take a look at the links.

https://directory.moneyadviceservice.org.uk/en

Thanks for take BG the time to reply. 😊

AnotherJoe

purple_window_shopper wrote: »

Hi, my husband has had a few jobs over the years, he is quite 'relaxed' when it comes to sorting out his pension so I am doing some research to push him along!
He has 3 company pensions, none of which have a great deal in them. He also worked at a company for two years without any pension and has just taken a new job which doesn't have a pension scheme.
My husband is now 56 and I would we really need to sort out our finances but I have no idea where to start with the pensions.
1. Is it worth collating the three pensions he has?
2. How do I go about it?
3. Is it better putting it into some sort of savings plan?

Any advice gratefully received!
Thanks

Point 3 absolutely not, but really your questions are rearranging the deckchairs, main priority whilst he is earning is to maximise the tax relief he can get into a pension, I assume he is on basic rate tax but even so the payback is much better than he will get in any other way.

How many years does he intend to Work? And what about you , what are you doing ?

purple_window_shopper

Hi Another Joe
yes he is paying basic rate tax, as for retirement, the sooner the better as far as he is concerned! He is 57 this year.
I receive careers allowance for my son and support for my dad (81) since my mum died.
Thanks
PS sorry about the gobbledygook on my other post, the perils of auto correct. Proofread! 😂

Alice_Holt

AnotherJoe wrote: »

really your questions are rearranging the deckchairs, main priority whilst he is earning is to maximise the tax relief he can get into a pension,...

Totally agree with this.

https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics
https://www.moneyadviceservice.org.uk/en/articles/when-and-where-to-get-pensions-help-and-advice
https://www.moneyadviceservice.org.uk/en/articles/pension-wise

https://www.theguardian.com/money/blog/2017/apr/22/save-40-a-week-retirement-which-report

As suggested start with both your SP forecasts and see if what additional money you would need to survive during retirement.

AnotherJoe

purple_window_shopper wrote: »

Hi Another Joe
yes he is paying basic rate tax, as for retirement, the sooner the better as far as he is concerned! He is 57 this year.
I receive careers allowance for my son and support for my dad (81) since my mum died.
Thanks
PS sorry about the gobbledygook on my other post, the perils of auto correct. Proofread! 😂

I assume you do not have income from employment then ?
Are you paying £2,880 into a pension each year ? That will give you a free £720.
You can do this every year until you are 75.

purple_window_shopper

AnotherJoe wrote: »

I assume you do not have income from employment then ?
Are you paying £2,880 into a pension each year ? That will give you a free £720.
You can do this every year until you are 75.

No I am not in paid employment and I am embarrassed to say I have no idea about the pension. When I say I am clueless I mean I am truly and absolutely clueless, although I am trying to rectify that now. 😕