Pension help for a dummy

Thrugelmir

iammumtoone wrote: »

Where do I start? I am guessing the easiest thing is to start paying more into my current work pension (nest). Are there any recommended on-line calculators I can play with to work out what I pay now equates to yearly income when I retire.

Ultimately the more you can save. The better your pension will be. If there's anything you can do to cut waste out of your budget. Then this money can be channeled into your pension pot as well. However small it'll make a difference.

LHW99

If you are only paying the minimum into your NEST pension, you could see if your employer will pay in a bit more if you pay in extra.
The amount that is paid into the scheme will be increasing over the next few years anyway as NEST is an autoenrollment scheme.

iammumtoone

LHW99 wrote: »

If you are only paying the minimum into your NEST pension, you could see if your employer will pay in a bit more if you pay in extra.

Unfortunately they don't do this. I remember about it at the time, it stated that if the employee pays extra the employers contribution remains the same.

As I understand it I will get tax relief? on extra contributions so if I pay £50 from my salary then net it won't cost me that much. I also see you can make lump sum contributions direct to nest which would work out better/easier for me but would mean I lose the tax relief via wages? So I need to get organised and transfer via my wages, is that correct?

EDIT: changed the tile of the thread to Pension help for dummies as it might help others the information in here. I really am clueless when it comes to pensions.

xylophone

Make a list of your old pensions.

Are any of them deferred defined benefit pensions?

See https://www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay re your auto enrolment pension.

See also

https://www.nestpensions.org.uk/schemeweb/NestWeb/public/memberhelpcentre/contents/how-can-i-make-additional-contributions.html

https://www.nestpensions.org.uk/schemeweb/NestWeb/public/memberhelpcentre/contents/do-i-need-to-claim-tax-relief-myself.html

iammumtoone

I believe/hope I have found all my pension pot providers.

As said above Blackrock is the only one that sends me yearly statements, is this a requirement to do as I don't receive anything from anyone else. I have received some statements in the past from AXA but they seemed to have stopped

- I have one pension that is closed. I have a from from them to fill out 2 months before retirement. Will contact them to find out current value
- I think I may have a Mercer pension but can't find any details on this I need to ring them hoping they can track me down via my NI number
- The blackrock one, I need to find out how long I contributed must have only been a few months
- AXA one that I believe is my contracted out payments, will call to check.
- And my current NEST one which again I will check current value (wont be much as most of it is part time working)

xylophone

https://www.gov.uk/find-pension-contact-details

I have one pension that is closed. I have a from from them to fill out 2 months before retirement. Will contact them to find out current value

I think I may have a Mercer pension

Are the above deferred DB pensions?

It is not at all unusual not to receive annual statements for such pensions.

You should receive annual statements for your DC pensions.

Read the information about NEST in links above.

iammumtoone

xylophone wrote: »

Are any of them deferred defined benefit pensions?

I think the first one is (the one I have received the form from) as the last information I received states protected rights at the time (2002) and a guaranteed annual addition.

Is it still worth contacting them for current value or should I just calculate it myself based on the current government retirement age?

I have no information for the possible mercer one I will contact them to enquire about it, it is possible it was set up the same way as it was with the same employer.

Alice_Holt

Some sites which could be worth looking at:
https://www.moneyadviceservice.org.uk/en/categories/pensions-and-retirement
https://www.citizensadvice.org.uk/debt-and-money/pensions/
https://www.pensionwise.gov.uk/en/work-out-income
https://www.which.co.uk/money/pensions-and-retirement
http://www.candidmoney.com/calculators/

With 23 years of contributions to go, 16 years of past contributions, and heading towards a full SP I don't think you are in a bad pension situation at all.
Just keep plugging away at making the maximum monthly contributions you are able to sensibly afford, get that info on all your past pensions, and learn about the options open to you.

xylophone

I think the first one is (the one I have received the form from) as the last information I received states protected rights at the time (2002) and a guaranteed annual addition.

This could be some form of hybrid scheme.

AXA one that I believe is my contracted out payments, will call to check.

This would be a "former protected rights" pension - just an ordinary DC pension now.

If you could check on the precise nature of all your arrangements and come back with the information, other posters might make suggestions.

Or you might wish to pay for the advice of an Independent Financial Adviser? A few hundred spent on this now could improve your long term position.

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

iammumtoone

xylophone wrote: »

Or you might wish to pay for the advice of an Independent Financial Adviser? A few hundred spent on this now could improve your long term position.

Something to think about. If I am going to do that what information do I need to ask the pension providers to provide to help the FA help me?

My main problem is I don't have all the paperwork relating to them, just snip bits here and there (yes I know thats bad please don't judge I am trying to sort it now). I don't know anything about any of them and don't want to spend extra on paying the FA to find out info for me I could do myself if I know the right questions to ask.