Consolidation of 3 pensions

imavillan

Hello all,

I would like some advice, thoughts and opinions on my situation and my train of thought.

I am approaching 55 and i have retired as my partner has already retired (early 60's) and has a good pension which has an income which is enough to cover both our needs.
I have 3 small pension pots and i am no longer paying into any of them, 1x13.5k with Aviva, 1x11k teachers pension, 1x78k LGPS.
With the LGPS i can take the following at 55
1) 3k pa - 3k lump sum
2) 2kpa - 14.5k lum sum

As my partners pension covers our needs and this is a relatively small amount my train of thought is to combine all into one SIPP and drawdown all of it tax free using my yearly tax allowance. Either taking 25% tax free allowance and then 7/8k pa for holidays and the like or not bothering with the 25% and just drawing down the 7/8kpa. I could drawdown an amount until i get my state pension which would then replace my 'empty' pot.
If may partner passes away before me i will be adequately covered as the SIPP pot will carry over to me. We own our property outright, circa 400k, so i/we could always downsize.

Keeping things simple maybe using Pensionbee to consolidate the 3 pots to drawdown from.

Thanks

Linton

Arent the LGPS and teachers pensions DB (Defined benefit/"final salary")?  If so you can only transfer the LGPS pension into a SIPP with some difficulty and cost which may not be justified given its size. Again assuming your pension is DB, I believe that unless you have been in it for less than two years you cannot transfer the Teachers Pension at all as it is "unfunded", ie paid out of general taxation rather than there being some money in the pot.  Others will be able to confirm that point.

As regards drawdown from a SIPP, rather than foregoing the tax free lump sum you can take each payment as 25% tax free and 75% taxed using "UFPLS".

Silvertabby

Your TPS pension can't be transferred to a SIPP/personal pension (being an unfunded public sector pension scheme) so that's off the table straight away 

In theory, you can transfer your LGPS benefits - subject to finding (and paying for) an IFA willing to act for you.  Just because you can access your LGPS benefits at 55 doesn't mean that you should - leaving them deferred until at least 60 will drastically reduce the early payment reductions.  And leaving them until you reach your NRA, when nil reductions apply, could be an option if you don't need the money straight away.

Albermarle

As above , you have two completely different types of pensions,
The Aviva one is a DC ( defined contribution )
and the other two are DB ( defined benefits ) 
https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/workplace-pension-schemes

imavillan

Thanks for the replies.

Just to confirm, i have less than 2 years in the teachers pension so i am able to transfer that out. I have checked with the provider who has confirmed this.

I was concerned that i would not be able to transfer the LGPS one and i have a telephone meeting with my partners FA tomorrow. It appears that i can transfer from what i have read. Obviously i will factor in any associated costs to do this in relation to the value. It may well be too expensive to do for what i am after. We'll see.

Albermarle

Transferring out of a defined benefit is a process that is much discussed on this forum . Try searching the forum for the many threads on the subject . As its is not a large figure you might get away with £3K for the financial advice and the recommendation will almost certainly not to transfer . An inflation linked  guaranteed income for maybe the next 30 years or more is a big thing to give up, and usually it is not a good idea. 

squirrelpie

imavillan said:

i have a telephone meeting with my partners FA tomorrow.

Just to note that it is generally always better to rely on an IFA (the I stands for independent) for any advice. So if your partner's FA is not an IFA treat everything they say very cautiously.