Options with additional private pension

janeseemore

Hi everyone, I have a private pension with Aviva (mixed investments) that I've not paid into for years. I have been working in the NHS for around 5 years and have been contributing to the 2015 scheme since I started age 30. I don't have much built up in Aviva fund, and its predicting a yearly estimate of only £80 per year from age 55.

I'm unsure if I should leave the money in there and re-start contribution however much I can a month? What concerns me it that the fund value has been unstable and has been moving up and down. Therefore would I be better saving into a regular saving account instead?  Another option I'm thinking of is to transfer the Aviva fund into my NHS pension pot.

Otherwise ill end up keeping the money in the private pension and take out the amount out at age 55?
 

Dazed_and_C0nfused

You don't have a "pot" with the NHS.

Are you you can use the Aviva pot to purchase extra NHS pension five years after starting work with the NHS.

Brynsam

Dazed_and_C0nfused said:

You don't have a "pot" with the NHS.

Are you you can use the Aviva pot to purchase extra NHS pension five years after starting work with the NHS.

Too late to transfer in - needs to be within 12 months of becoming eligible to join the NHS 2015 scheme for the first time.

janeseemore said:

I'm unsure if I should leave the money in there and re-start contribution however much I can a month? What concerns me it that the fund value has been unstable and has been moving up and down. Therefore would I be better saving into a regular saving account instead?  
 

What are you expecting the fund value to do? Depending on the underlying investments (i.e. where your funds are actually invested), it is entirely normal for them to fluctuate, especially if your have a reasonable slug of equities (stocks and shares) in the mix. Markets go up and down the whole time.

Whether you would be 'better saving into a regular saving account' depends on what sort of savings you have in mind (they too will go up and down if you pick similar types of fund to your Aviva pension!) and what your objectives are. If you specifically want to increase your retirement provision and are sure you won't need to access the cash early, the tax advantages of a pension are considerable, but check first what options you have for increasing your NHS pension (website has more info on this: https://www.nhsbsa.nhs.uk/member-hub/increasing-your-pension).

janeseemore said:

Otherwise ill end up keeping the money in the private pension and take out the amount out at age 55?
 

Certainly an option, although given your age now, 57 is projected to be the minimum age at which you can access the Aviva pot (the change comes in wef from 2028 and could increase again before you get to 57).

janeseemore

Thank you for your help