6% growth - old with profits pension

2stixoftwix

I have got an old legal and general with profits pension that I've had for about 25 years.
It started off as a works contacting out pension that was worth about £23k when I stopped paying into it (around 1997)
It has just been building up slowly over the years largely ignored but is now worth £58k

It has grown an average of 5% year on year which I know isn't much, but it is still growth.

I have just become a company director and know that it it will be far better use of the money to put into the pension than take it as a dividend.

Considering my company year end is next week, and we are nearly at the end of the tax year I am working on the idea that it will be good to put a lump sum (around £10k) into it

My questions are

1) is 6% average growth really bad or ok
2) if I don't put it in, I will lose the chance for this tax year?
3) with a week to go add it to the existing with profits, or open up a new pension scheme?

Any advice will be helpful

dunstonh

It has grown an average of 5% year on year which I know isn't much, but it is still growth.

Its not bad either given the lower risk level and the fact there is some capital security.

1) is 6% average growth really bad or ok

For the risk level it is fine. Whether you are that risk level or not is a different matter.

2) if I don't put it in, I will lose the chance for this tax year?

No.

The only thing you lose at the end of this tax year is 2014/15 allowance. However, that isnt an issue as you were only looking at £10k.

3) with a week to go add it to the existing with profits, or open up a new pension scheme?

Without an analysis of what you have and alternatives, we cant answer that. You may not be able to add to the old pension. You may not be able to add to that fund but have to select a different fund.

2stixoftwix

Thanks I can add to this fund, there are 3 different ones. ( not sure how maybe employee, employer and personal)

I was unsure about the time allowance due to it being paid by the company.

How would that work once a dividend was taken and the company didn't have any extra cash left, say from last year?

dunstonh

I was unsure about the time allowance due to it being paid by the company.

How it is paid is irrelevant.

How would that work once a dividend was taken and the company didn't have any extra cash left, say from last year?

Put the money back into the company as directors loan or a return of money to cancel out dividends. Speak to your accountant.