private pension access - work contributions

Sparrowsmith

Hi forgive me im not very au fait in this .I had private pensions which i took at age 55 and put in some draw down scheme with a private firm linked to st james place . i took the tax free bit 3 yrs ago at age 56 and left the rest . I could have done with taking a little more recently to pay for a boiler and the rep said ok you'll pay tax on it which i did already know but then he said as i have an ongoing pension in the nhs (im 58 and still working ) if i put £200 a month or more in the nhs pension scheme then they cant put their ie employers contribution in ?so id be losing 'free'money. Is this correct ? because ,if so , i wont have any access to my private pension until i finally retire from the nhs .Just seems unfair/dodgy to me .Thank you in advance .
             

NoMore

I think your FA is talking about the MPAA (Money Purchase Annual Allowance) whereby, if you take taxable income from a DC pension, you are then limited to only 4k per year contributions to your pensions.

However I'm not sure how that interacts with your NHS pensions, as thats a DB pension not a DC pension. I think it doesn't affect it, but I'm not sure, somebody else on the forum will know.

Basically I think we need more info on exactly what your plan is an what pensions you have and wish to access.

Sparrowsmith

Thanks so much for your help .Appreciate it and I've something I can Google now 😁

Albermarle

On another thread I was reliably informed that the MPAA ( which is triggered when you take taxable income from a DC pension) does not affect ongoing contributions into a DB pension. 

.I had private pensions which i took at age 55 and put in some draw down scheme with a private firm linked to st james place 
St James Place = expensive . You may wish to consider cheaper options at some stage .

Sparrowsmith

Thanks Albermarle , yes indeed and i dont think their funds perform very well . I didnt do my homework properly , being ignorant of pensions .I do know that i am tied into this company for the next 6 yrs because of expensive get out clauses. If id have just googled the reviews i may have changed my mind and left them (pensions)where they were...

Albermarle

If id have just googled the reviews 

Or been a regular reader of this forum..... 

xylophone

On another thread I was reliably informed that the MPAA ( which is triggered when you take taxable income from a DC pension) does not affect ongoing contributions into a DB pension. 

See links in


 https://forums.moneysavingexpert.com/discussion/comment/79294449#Comment_79294449

Sparrowsmith

Thanks ,yes you're right .When i asked the finance guy to put on an email what he'd said to me he just mentioned the DC contributions knowing full well im in the nhs pension which is a DB pension. In the meantime ive put the cost of a boiler on a credit card because he said the NHS  wouldnt be able to contribute to the pension.To say hes made me feel stupid is an understatement . I have no trust in him or the company and im tied in now for the next 4 yrs . Beware who you go to to look after your investments / pensions folks.Could work out costly in more ways than one.

Kim1965

Sjp charges take a huge chunk out of the inveszment growth. The pension you have already in drawdown has presumably triggered limits to adding to dc schemes? 
 Out of intetest, did sjp try to talk you out of drawing on the pension prior to retirement? 

Sparrowsmith

Hi , i only have the drawdown pension that theyre looking after and a defined benefits nhs pension that i cant draw until the end of 2023.From what i remember (my final meeting before i signed documents  over was via video link as the Covid lockdown had kicked in ) the guy ,who has since left the company , lead me to believe that if i had any emergencies or a 'rainy day'i would be able to draw on the funds .He didnt try to talk me out of taking money out but then maybe he was too honest to be working for this company! I was then transferred to this new guy who either 1:not as honest or 2: rubbish at his job. Call me cynical but i just bet theres rich rewards/bonuses/treats for trying to keep clients' money in tact . More money = more money for SPJ to take.