pension income combine pensions

deltadog

my wife has 4 small pensions totaling 202.74 per month would it be to any advantage to combine these 4 small pensions
£9.15  £76,48  £35.54  & £81.57

MallyGirl

There's unlikely to be a financial one with such small numbers but there might be an administrative one - less people to deal with/update address at etc.
Are they all normal DC pensions?

Brie

Are they already in payment?  If so I don't think it's possible.

If they aren't - are they all defined contribution?  In which case it might be an idea.

But if they are that tiddly it might be worthwhile to contact the scheme administrators and see if they can be paid out in full as being trivial.  

Of course the other option would be to shift them all into her current work scheme if that's an option.

len1950

Hi   
As a Pensioner who has taken out two extra Pensions for my retirement plus my State pension so I would not become a financial burden to the state and could live my life in retirement independently. I am now being penalised for doing this with TAX ? . Would you recommend any 40 year old to take out Extra pensions knowing that when their Retirement comes along, It was a Pointless saving. So Should you be urging people NOT to take out Extra pensions . just live of the state and be mean’s tested , ?????

Silvertabby

len1950 said:

Hi   
As a Pensioner who has taken out two extra Pensions for my retirement plus my State pension so I would not become a financial burden to the state and could live my life in retirement independently. I am now being penalised for doing this with TAX ? . Would you recommend any 40 year old to take out Extra pensions knowing that when their Retirement comes along, It was a Pointless saving. So Should you be urging people NOT to take out Extra pensions . just live of the state and be mean’s tested , ?????

Well, this tax paying pensioner, for one,  absolutely disagrees with you.  I'd much rather live comfortably in retirement than subsist on means tested benefits.

After all, the 80% left after tax is way more than nothing.

xylophone

As a Pensioner who has taken out two extra Pensions for my retirement 

Did you not realise that pension income would be taxable if in excess of your personal allowance?

dunstonh

Would you recommend any 40 year old to take out Extra pensions knowing that when their Retirement comes along, It was a Pointless saving. 

Why do you think it is pointless?

If you put nothing into a pension you get nothing in retirement.  So, just your state pension of around £9500 a year and a little bit of benefits to bring you to the breadline.  You can then enjoy 25-30 years of retirement in near poverty.

Alternatively, you can put money into the pension.  Get tax relief on the contributions, tax free growth and when you take withdrawals from the pension, 25% of it tax free and 75% taxable (above your personal allowance).   If you are a basic rate taxpayer whilst contributing to the pension and a basic rate taxpayer in retirement, that is a boost of 6.25%  (but don't forget that you get almost £3000 tax free earnings above the state pension which the pension can use).

So Should you be urging people NOT to take out Extra pensions . just live of the state and be mean’s tested , ?????

With such a bizarre statement, this has to be a troll.

Flugelhorn

len1950 said:

Hi   
As a Pensioner who has taken out two extra Pensions for my retirement plus my State pension so I would not become a financial burden to the state and could live my life in retirement independently. I am now being penalised for doing this with TAX ? . Would you recommend any 40 year old to take out Extra pensions knowing that when their Retirement comes along, It was a Pointless saving. So Should you be urging people NOT to take out Extra pensions . just live of the state and be mean’s tested , ?????

presume you mean income tax - yep that goes with the  territory, what I wasn't expecting when I started an extra pension was the lifetime allowance tax - 55% if I want to empty the pot 

dunstonh

Flugelhorn said:

len1950 said:

Hi   
As a Pensioner who has taken out two extra Pensions for my retirement plus my State pension so I would not become a financial burden to the state and could live my life in retirement independently. I am now being penalised for doing this with TAX ? . Would you recommend any 40 year old to take out Extra pensions knowing that when their Retirement comes along, It was a Pointless saving. So Should you be urging people NOT to take out Extra pensions . just live of the state and be mean’s tested , ?????

presume you mean income tax - yep that goes with the  territory, what I wasn't expecting when I started an extra pension was the lifetime allowance tax - 55% if I want to empty the pot 

Given the choice of a pension fund of over 1 million or zero, I bet I know what you would choose.

Flugelhorn

dunstonh said:

Flugelhorn said:

len1950 said:

Hi   
As a Pensioner who has taken out two extra Pensions for my retirement plus my State pension so I would not become a financial burden to the state and could live my life in retirement independently. I am now being penalised for doing this with TAX ? . Would you recommend any 40 year old to take out Extra pensions knowing that when their Retirement comes along, It was a Pointless saving. So Should you be urging people NOT to take out Extra pensions . just live of the state and be mean’s tested , ?????

presume you mean income tax - yep that goes with the  territory, what I wasn't expecting when I started an extra pension was the lifetime allowance tax - 55% if I want to empty the pot 

Given the choice of a pension fund of over 1 million or zero, I bet I know what you would choose.

Quite true - it was just a tax  that I didn't appreciate (well it didn't exist) when I thought it would  be a good idea to open AVCs to top up pension