0.2% charges on deferred pension.

waveydavey48

AnotherJoe wrote: »

Is there a transaction history to see how its changed over the past few years? You may have been shifted into cash and gilts very recently. Or if you've been in cash and gilts the last 7 years then you dont want to try and work out what that £155k would be now had you been 100% in Blackrock instead


p.s. should have asked, i cant see from what you've written, whats the split of these three?

The split of funds alters as age 60 approaches and is currently something like (it's on a chart and not precisely stated) 40% "concensus fund", 45% "over 15 years gilt fund" and 15% "cash fund".

I will have to read closely to see exact performance over the last 6 years or so but from memory and very roughly I think it's about 6 or 7% which when combine with low charges seems OK?

AnotherJoe

At least the cash hasnt been dragging you down too much and the gilt fund has been respectable.
If you are going to be invested another 10-15 years you dont really want 15% or more in cash. I dont know anything about gilts but the performance of that fund has been decent so youve not lost out too much if at all, its pretty much tracked VLS60 for example which everyone here holds up as the ultimate. And with low charges like you have I'd stay as you are in the default except get rid of the lifestyling strategy otherwise you will probably find yourself 100% in cash in 2 years time and then for the next ten years.

waveydavey48

Thanks, much appreciated.

Albermarle

40% "concensus fund", 45% "over 15 years gilt fund" and 15% "cash fund".

The Blackrock Consensus funds are low cost multi asset funds . There is a range of them from '35' to '100' . The higher the number the higher proportion of equities . Over the last 5 years the '35' has grown by 6% a year . The '85 ' by 7.5% a year and the '100' by 13% a year . If you were to use a Consensus fund for more of your money in future you need to think about which one .
I will have to read closely to see exact performance over the last 6 years or so but from memory and very roughly I think it's about 6 or 7% which when combine with low charges seems OK?
The last 6 years have been very good for equities , except for a couple of blips, even for relatively unadventurous investors ( like me !) so in theory at least the next 6 years will be trickier.

waveydavey48

Thanks Albemarle. I'm pretty unadventurous myself but I think a bit of tweak is on the cards. I appreciate all your help folks.

waveydavey48

A further thought has occurred to me and I would appreciate your input folks.

I will be 58 in February and my DB pension starts at age 60. I will be leaving my little part time job around the end of this year and if I understand it correctly that means I can withdraw some money from my DC pension pot without paying tax.

Is it the case that in April next year (when the new tax year starts) I can take 25% TFLS and also my personal allowance of £12,500, and then in the next tax year £12,500 from my DC pot and pay no tax?

If so, in April 2019 I could open a S&S ISA with £20k and invest it in a Vanguard Lifestrategy fund (maybe 60/40), give £20k to my wife to do the same and then in 2020 open another S&S ISA and do the same.

I would then just leave the remainder invested with Fidelity.

I would welcome further thoughts.

Thanks again
Dave

Albermarle

Is it the case that in April next year (when the new tax year starts) I can take 25% TFLS and also my personal allowance of £12,500, and then in the next tax year £12,500 from my DC pot and pay no tax?

Presuming you have no other income then this is OK

If so, in April 2019 I could open a S&S ISA with £20k and invest it in a Vanguard Lifestrategy fund (maybe 60/40), give £20k to my wife to do the same and then in 2020 open another S&S ISA and do the same.

Yes that would be OK . Some people would be wary about investing the whole £20K in one go ( or £40K in your case) in case the markets fell a lot just after you invested. You could spread it over three payments every three months for example.

Dazed_and_confused

I will be 58 in February and my DB pension starts at age 60

Is it the case that in April next year (when the new tax year starts) I can take 25% TFLS and also my personal allowance of £12,500, and then in the next tax year £12,500 from my DC pot and pay no tax?

So 58 in the 2019:20 tax year (and working for most of it)

59 in the 2020:21 tax year (no work or DB pension)

60 in the 2021:22 tax year (DB pension starts)

What you suggest is fine as long as you realise you will be liable to tax on 100% of the DB pension payable in the 2021:22 tax year. Was that your intention?

AnotherJoe

Albermarle wrote: »

Presuming you have no other income then this is OK

Yes that would be OK . Some people would be wary about investing the whole £20K in one go ( or £40K in your case) in case the markets fell a lot just after you invested. You could spread it over three payments every three months for example.

The OP is, I think, looking at using the £40k that came out of his pension where it was already invested, so he'd just be reinvesting it. Its logically no different to selling 25% of his pension investments, and then reinvesting them at 1/3 each month over the next 3 months.

waveydavey48

Dazed_and_confused wrote: »

So 58 in the 2019:20 tax year (and working for most of it)

No, apologies if I didn't make it clear. Plan is to stop working by the end of this year (when I will still be 57). Then next April, when the new tax year starts, withdraw the TFLS and £12,500 personal allowance and open S&S ISA and invest in VLS60 (self and wife).

On reflection I suppose the problem would come in the following tax year because if I withdrew another £12,500 I would be using up my personal allowance so when my DB pension commences in February 2022 it would all be taxed.

I'm just thinking that the fact I will have zero taxable earnings from April 20 - April 21 presents me with a window of opportunity and what I have outlined is a way to take advantage of it.

Thank you.