A little pensions advice

PaulAshby

I have 3 pensions, the first was with AXA then became FriendsLife and recently became Aviva. This is in two plans, one had a previous company pension transferred into it the second I paid into over a 5 year period. I then went back to work with the original company again (should have kept that pension, grr) and paid into their scheme for 5 years. I then had a period where I was not paying to a pension before starting a Virgin money stakeholder pension.
I am wondering if I should combine all these into one, the Aviva one does not feel like it has done very well and as I look though some old statements seems to be paying less and less pension even though the unit value is going up. This in 2016 had a value of £30,000. Would pay a pension of £1486 pa from 2021 (age 55) and an extra £302 pa from 2031.
The company pension will pay £5414 pa from 2029 (age 63).
The Virgin pension pot has £23,600 in it.
The company pension says it has an LTA value (?) of £108,280 and a CETV of £158,096, not sure what these really mean to me.
The Aviva plan 1 has a value of £17,744 and a transfer value of £26,577.
Plan 2 has a value of £11,869 and a transfer value of £17,650 (no idea why these together do not add up to the £30k on their front sheet)
I will be 52 in May and do not think the original plan to retire at 55 is likely and could do with a little advice on how to proceed with these pension pots or just leave them as they are.
Thanks
Paul

xylophone

Have you obtained a new state pension statement?


https://www.gov.uk/check-state-pension

For explanation of terms

http://www.thepensionsregulator.gov.uk/glossary.aspx

Is one of the Aviva plans a S32 arrangement?

http://www.financialadvice.net/s32_buy_out_plan/zone/1288

You have a deferred Defined Benefit Pension with the company?

It may be worth considering consolidating the Virgin pension and one at least of the Aviva policies.

You might wish to take personal advice from an IFA.

https://www.moneyadviceservice.org.uk/en/articles/choosing-a-financial-adviser

AnotherJoe

PaulAshby wrote: »

The company pension says it has an LTA value (?) of £108,280 and a CETV of £158,096, not sure what these really mean to me.

LTA means how much of your total £1M pension allowance this uses. With a defined benefit pension that is calculated by mutiplying the annual payment by 20. So £5414 x 20 = £108,280.

The CETV is what they would pay into a different pension plan if you wanted to give up the £5414 per year pension and manage the pension pot yourself. £158,096 / £5414 = 29. A pretty decent "cash in" multiple that many would say makes it worthwhile considering.

sandsy

Is the Aviva plan a S32 with Aviva plan 2 being a GMP payable from age 65?

The sum of the two fund values is close to £30k. I wonder if the transfer values are actually CETVs for advice requirement purposes.

PaulAshby

When I checked last year I had paid enough NI to get the higher state pension when I retire, annoyingly I cant seem to log in now, something is wrong with my password and username.
I do not think either of the Aviva plans is an S32, at least nothing I read on the documentations leads me to think it is. I am thinking of putting both the Aviva plans into the Virgin pot, I get no online access to them and imagine I am paying monthly fee's to the original pension advisers
I did send an email out to them last night expressing my concerns of the advice they gave regarding the first company pension transferred. You never know something may come from it.
Can see myself having to have a chat with an IFA sometime soon.

xylophone

It might be best to consult an IFA before you take any action over the pensions.

Are you currently employed? If so, is a workplace pension on offer?

dunstonh

I do not think either of the Aviva plans is an S32, at least nothing I read on the documentations leads me to think it is. I am thinking of putting both the Aviva plans into the Virgin pot, I get no online access to them and imagine I am paying monthly fee's to the original pension advisers

If you are paying a fee to the original advisers then they should be providing an ongoing service. Only commission on cases arranged prior to 2013 is exempt. not fee. (An Aviva stakeholder has no fee but is cheaper than a Virgin Stakeholder. An Aviva PPP from around 2007 or earlier wouldnt have a fee. Aviva platform is fee based).

Virgin is one of the worst pensions going. Twice the cost of what an IFA can arrange or you can get better on the DIY market. You could actually end up paying more in charges than you are currently as well as having the pretty poor quality Virgin investment options.