Pension and 55yrs old

jean594

Hi I am new to this forum so wondering what I can do with my pensions, I have a dormant pension from previous employer which is only growing by interest only, not adding to it as new employers started a new Pension, It is worth very little when I retire , the company reckon it would product £160 a year!! I also have a pension which started when we had the opportunity to op out many years ago, again I stopped payments many yrs ago as on maternity leave and part time work so couldn't afford it. Is it worth transferring it into one pot or removing the money completely and using it to pay of debts ie credit card and loan for a car. Any advice would be really helpful, I was 55 in April which I assumes means I can withdraw some ?:)

kidmugsy

Paying off expensive debt is usually a good idea especially if you then choose to contribute to a pension a decent chunk of the money you no longer need to pay on the loans.

As for cashing in your old pensions: just check to ensure that you don't force your income in this tax year over the higher rate threshold (£45k; £43k in Scotland).

xylophone

I have a dormant pension from previous employer which is only growing by interest only,

Are you sure that you understand this pension?
What kind of pension is it? A deferred Defined Benefit?

I also have a pension which started when we had the opportunity to op out many years ago,

You mean you have a pension which accepted contracted out rebates (former protected rights)? What is the value of this pension?

Lace_lady

Hi , the value of the pension is about £9,000 so not very much , don't understand all the terms . I have got in contact with a financial advisor and hope they can make sense of them all

greenglide

It seems unlikely that a financial advisor would be appropriate for a pension which is worth £9,000 as the fees involved would be a huge chunk lost.

You could initially try Pension Wise? This is free and should be able to understand your options. This is not, however, an advice service.

See the Web site here https://www.pensionwise.gov.uk/en/appointments?ici=top-financial-advice&icn=book-appointment

xylophone

When you left your employer, were you by any chance given a "statement of deferred benefits"?

If so, what did it say?

Otherwise, who was the former employer and when did you work for the company?