General Pension Help

xylophone

You still have the L&G pension with which you seem to be content.

Are you able to make additional contributions to that?

Marcon

Poor_Leno wrote: »

Right now I am only paying into a workplace pension, which is pretty bad in all honesty. It does confuse me a bit that my YTD pay is equal to my taxable pay, whereas I expected a difference between the two - unless the tax break is somehow claimed back some other way.

Yes, it is. Contributions to NEST are made out of your post-tax salary. NEST then reclaims basic rate tax relief on your behalf and add this direct to your 'pot' with NEST.

If any some happy point you become a higher rate taxpayer, you may be able to claim further tax relief through your self-assessment form.

Why do you think your workplace pension is 'pretty bad' ?

Poor_Leno

Marcon wrote: »

Why do you think your workplace pension is 'pretty bad' ?

Perhaps it was misunderstood, but I meant its pretty bad that I am only currently investing in the workplace scheme and no other product alongside it (besides the cash LISA @ the max of 325 per month). Considering that, 5 years ago, I was investing 8% (+ employer 8%) into a company scheme, I am only currently putting into a pension about half of what I was before - and it does concern me.

My work colleague says I am bonkers for investing into a cash based retirement product (LISA) and the money I am putting into that, he thinks I'd be far better off either putting into a new personal pension with another provider or topping up my Legal & General scheme (I can make additional contributions to it). I don't know tbh,I just figured that 1,000 of free interest until I turn 50 is not a bad deal, and investing the 50,000 I'd have in the LISA at that point (since I can't invest beyond that) would not be a bad idea, and hopefully put something extra either into this Legal & General one or another/alternative product.

Regarding my old scheme that has a transfer value of 25,000, it says it is worth 2,950 per year when I retire. I guess right now I need to find out if I can actually do anything with this pension in terms of bringing it into my Legal & General one.

atush

Consider a S&S isa perhaps for futher investments. Not a cash isa.

And it would be foolish to transfer a DB pension into a Nest pension.

Poor_Leno

atush wrote: »

Consider a S&S isa perhaps for futher investments. Not a cash isa.

And it would be foolish to transfer a DB pension into a Nest pension.

Is that because of a reduced drawdown or what? I know Nest's fees are expensive, but I don't know enough as to how money is invested or what it would be worth down the line.

https://i.imgur.com/e1b02aa.jpg
This is from the closing brochure I have for my old scheme.

https://i.imgur.com/bvhjIiN.jpg
When I logged in last week, this was showing as being worth £7,000. The above is a statement from 20 months ago.

xylophone

Were you given a statement of deferred benefits when you left the scheme?

Do you still have the scheme booklet for your scheme?

What does it say about escalation (increases) in payment?

It would be usual for it to be index linked to give some degree of protection - thus when you retire, you would have your state pension and this small private pension as secure, index linked income for the rest of your life.

If the value of your benefits has increased above £30,000, you will need to pay for advice from a pension transfer specialist if you wish to transfer.

If the advice is negative, your chosen scheme may not accept a transfer in.

Have you read through the RL guidance - second link in post 4 above?

xylophone

And see

https://www.moneysavingexpert.com/savings/lifetime-isas/