Approaching retirement

fife_flyer_2

I am about to be 60 and my pension is vastly underfunded. I have about £70,000 in a workplace pension, and about £30,000 in a with profits scheme. I also have another personal pension plan with a transfer value of around £9,000. Does it make sense to transfer the £9,000 into my workplace pension?


I hope to work until I'm 65 but my job might come to an end before that.

Linton

Whether it is worthwhile transferring depends on the details of the two pensions. In particular the costs of reach and the range and quality of the investments they provide. It is probably pretty marginal either way.

You would seem to have more important issues to worry about. Can you make a significant increase in the pension contributions you can make in your remaining working years? Have you checked whether you will be entitled to a full state pension? See https://www.gov.uk/check-state-pension

Marcon

Given that your state pension won't be payable until you are 66, perhaps aiming to work until 66 rather than 65 would be one helpful strategy?

geoffers4

Sorry to hear your pension pots aren't where you'd like them to be.
Some good suggestions above - also, have you considered clearing any remaining debts/mortgage while you are still working. And replacing the car/central heating/anything else likely to create big bills later if not sorted now.

fife_flyer_2

Thanks for the advice so far. I can see the advantage of working until I am 66 but my employer might have other ideas. Could hopefully find other employment but probably at lower salary. I also own a property which can be rented out so will not be solely dependent on pension for income

JoeCrystal

fife_flyer wrote: »

I am about to be 60 and my pension is vastly underfunded. I have about £70,000 in a workplace pension, and about £30,000 in a with profits scheme. I also have another personal pension plan with a transfer value of around £9,000. Does it make sense to transfer the £9,000 into my workplace pension?


I hope to work until I'm 65, but my job might come to an end before that.

I know you may be disappointed with the value of the pension pot, but it is better to have something than none at all. First of all, you need to work out how much you do need to live on? You would also have the state pension in six years so that can go a long way toward your retirement provision. I see you got BTL property so that might help but have you consider selling the property to raise more funds for your retirement?

tacpot12

JoeCrystal wrote: »

... I see you got BTL property so that might help but have you consider selling the property to raise more funds for your retirement?

I think this will only be necessary if you needs more additional income than renting the property will produce natural (or if you become too infirm to manage the property).

That said, if you are not already letting the property, you are missing out on a major opportunity to fund your pension plan adequately. Get it let out now if it can be let, and if it can't be let, sort out the problem now while you can afford to do so.

eastcorkram

fife_flyer wrote: »

I am about to be 60 and my pension is vastly underfunded. I have about £70,000 in a workplace pension, and about £30,000 in a with profits scheme. I also have another personal pension plan with a transfer value of around £9,000. Does it make sense to transfer the £9,000 into my workplace pension?


I hope to work until I'm 65 but my job might come to an end before that.

I wouldn't worry too much. You are probably far better placed than the majority of private sector employees.