Pension advice

ArcticBlue

Hi, so I am about to start a job and I can have either a civil servants Alpha pension scheme or the Partnership scheme, I have read up on the Alpha pension and I am leaning towards that, I read I can upgrade the scheme and make extra payments? however I am 45, I do plan on working here as long as possible (retirement) or until I can no longer pass the fitness tests which might mean I lose my job or get a lower paid job.

According to the info they have given me so far regarding the Partnership scheme is they will match what I contribute up to 3% plus contribute something towards it based on my age?

1 last thing, I currently have a private pension, will I have to freeze that or can I continue paying into it while having 1 of the above pensions?

Thanks for any info.

JoeCrystal

You can look into seeing what a transfer in of your private pension will buy you in term of DB pension in Alpha as well.

Albermarle

1 last thing, I currently have a private pension, will I have to freeze that or can I continue paying into it while having 1 of the above pensions?

You can pay into as many pensions as you like, as long as you do not breach the overall annual limit for contributions of £40K, or contribute more than you actually earn .
Even if you do not contribute to your private pension, it is not 'frozen ' as the investments within it will continue to grow ( hopefully ) . You can also stop contributions and start them again later.

ArcticBlue

OK thanks, the private pension matures when I am 55 would it be better to let that run its course, take the full amount and then use that money to buy extra over the following years, or just see about doing it now?

After reading a bit more it seems I might also be able to buy extra every year at a specific time, does that sound correct?

SonOf

OK thanks, the private pension matures when I am 55

That seems unlikely. Most personal schemes have no fixed maturity date. 55 is just the earliest you can access the pension. The statement projection may say 55 but it doesnt mean you need to take it at 55.

atush

The question re transferring your old pension is, when do you plan to retire? At SP age, scheme age, or earlier?

If earlier, it is good to have a DC pension to use while waiting for your main pension to pay out unreduced.

atush

i personally think that also goes for buying added pension. Not much point in buying it, then having it reduced by taking it early.

But if you dont transfer your old one, and will leave the DB until your scheme age, then buying more going forwards is a good idea.

ArcticBlue

Well the private pension I took out when I was about 22, I had to give an age so I said 55, depending on how I get on with the new job they offer early retirement, the aplha pension I am being offered I believe allows for this with no penalties, I believe the "early" retirement age is 65, so that would give me 20 years.

The forecast on my private pension is poor, so maybe reinvesting it into the new pension at some point would be a better option.

SonOf

The forecast on my private pension is poor, so maybe reinvesting it into the new pension at some point would be a better option.

Pensions do not give forecasts. They give projections. A very different meaning. The assumptions in the projections are intentionally pessimistic and are displayed into todays terms. Not future money terms.

Any new pension would use similar projections as the FCA set the format.

AnotherJoe

ArcticBlue wrote: »

Well the private pension I took out when I was about 22, I had to give an age so I said 55, depending on how I get on with the new job they offer early retirement, the aplha pension I am being offered I believe allows for this with no penalties, I believe the "early" retirement age is 65, so that would give me 20 years.

The forecast on my private pension is poor, so maybe reinvesting it into the new pension at some point would be a better option.

Unless you know why its poor, and poor relative to what, there;s no point moving it, you might be frying pan into fire. OR, a really good place to a really bad one.

Is it poor because your expectations are unrealistic? if theres hardly any money in it you cant expect to geta lot from it.Is it poor compared to other pensions (which ones if so?) ?

Is it poor because, as SonOf says, the projections are based on unrealistically low growth?
Or because it assumes you'll take an annuity, which you almost certainly wouldnt?

ArcticBlue

the projected amount of money it would pay per month is very poor, it does not have a lot of money in it, maybe 15k at the moment, if this civil servant alpha pension scheme could be boosted by this private pension would that not give overall better returns in 20 odd years?