I just can't get my head round it all - HELP!!

2nd_time_buyer

"I've since been online and it's got a value of about £250 and the amount doesn't change when I request a transfer out quote"

Is that an annual payment of £250? (i.e. defined benefit/final salary pension)?

If so, an equivalent annuity paying that could cost upwards of £10k - so certainly not worthless 

[Deleted User]

xylophone said:

I don't know about the deferment value as it will only let me do certain things online so it could need a phone call

Do you have a copy of the scheme booklet or can you order one/look at it on the web site?

I don't have a physical copy, but I can have another look around their website. Failing that, I'll give them a call.

It's a Barclays UKRF Lifestyle .....*retirement year* Fund and I've received an updated Statement this morning.

[Deleted User]

2nd_time_buyer said:

"I've since been online and it's got a value of about £250 and the amount doesn't change when I request a transfer out quote"

Is that an annual payment of £250? (i.e. defined benefit/final salary pension)?

If so, an equivalent annuity paying that could cost upwards of £10k - so certainly not worthless 

Apologies, I should have been much clearer. That's how much the total pension is/transfer out. And it will pay just over £5.00 p.a.

xylophone

It's a Barclays UKRF Lifestyle .....*retirement year* Fund and I've received an updated Statement this morning.

https://epa.towerswatson.com/accounts/barclays/public/barclays-bank-sections-of-the-ukrf/

Were you in a DC rather than DB Section?

[Deleted User]

xylophone said:

It's a Barclays UKRF Lifestyle .....*retirement year* Fund and I've received an updated Statement this morning.

Were you in a DC rather than DB Section?

Yes, that looks like the one. 

kidmugsy

AnxiousMumofAnxious2 said:

kidmugsy said:At least, I suggest, you might wait until the Chancellor of the Exchequer's Budget speech in the autumn to see what his thinking is on this matter.

Husband's investment is an actual item, so although it will go up in value (and it already has), it will need to be sold to get any money back from it. Would that change your advice at all?

Good question. I suppose now there are three parts to my answer.  

(i) Wait until the second weekend after the Chancellor of the Exchequer's Budget speech in the autumn.  By then even the "small print" will have been publicised in the papers.  Then put another post on the Pensions forum, linking to this post of yours, and asking if the Budget should have any effect on the suggestions you received.

(ii) Waiting will also perhaps reveal how much your husband is going to make from his earnings, as distinct from his investment.  That may give you more confidence to contribute to a pension.

(iii) My own opinion, which is probably viewed as a heresy in these parts, is that there is a lot to be said for so-called "market timing" i.e. waiting for a nice stock market crash before you invest.  That might be another reason to wait until the winter.  If everything still looks awfully expensive you could even leave the money in your pension as cash rather than investing it right away.  The trouble is that I may be entirely wrong in my crystal-ball gazing and anyway you'll have to grasp the nettle at some point and invest.  Mind you I was pretty bang on in judging the absurd market high of 1999/2000.  Yippee!

2nd_time_buyer

AnxiousMumofAnxious2 said:

kidmugsy said:

kidmugsy said: ... the most you can contribute to a pension is an annual £2,880 (net) = £3,600 (gross).  If you feel that you can afford that then it's probably the most tax-efficient thing you can do.

On second thoughts: you have a nice sum available for emergencies - it might be unwise to tie any of that up in a pension until it is clear that your husband's new investment is going to pay off by giving you higher income.  So you could wait until just before the end of the tax year (5th April) before contributing to your new pension.

There's another reason to delay but it's rather speculative.  The papers routinely carry the suggestion that tax relief may be increased for basic rate taxpayers (and presumably for non-taxpayers like you) while being reduced for higher rate taxpayers.  There could therefore be a case for hesitating in hopes that you can contribute in future and get this bigger tax relief.

At least, I suggest, you might wait until the Chancellor of the Exchequer's Budget speech in the autumn to see what his thinking is on this matter.

In summary there's probably a decent case for you to wait until the winter before you make a contribution.  That gives you lots of time to help decide which provider you might like to use and for the success of your husband's investment to become clearer.

Thank you for pointing this out.

Husband's investment is an actual item, so although it will go up in value (and it already has), it will need to be sold to get any money back from it. Would that change your advice at all?

I must admit I am very intrigued as to what the investment is. I am struggling to think of a single (legal)  asset other than perhaps bricks and mortar that would be considered as suitable to base a retirement on. Certainly sticking it all in one of the usual suspects e.g. gold, jewellery, wine, cars, etc. would be fraught with danger.