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Old pensions of low value. Annuity or SIPP?
lucrecia15
Posts: 6 Forumite
I'm planning to retire in the next 24 months and have 3 old pensions currently losing value due to management fees.
I'm still working, nearing 40% tax bracket so I don't really want extra income right now but I'm fed up with seeing these small pensions devalue.
Any ideas? Thanks.
I'm still working, nearing 40% tax bracket so I don't really want extra income right now but I'm fed up with seeing these small pensions devalue.
Any ideas? Thanks.
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Comments
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and have 3 old pensions currently losing value due to management fees.That is highly unlikely. Theoretically possible if they are 1980s pensions which were only paid into for a few years but not the rest. Its more likely you are looking at either a short-term drop over a single year or going by the projections which have progressively used lower assumption rates which result in lower projections but are not real values.I'm still working, nearing 40% tax bracket so I don't really want extra income right now but I'm fed up with seeing these small pensions devalue.Perhaps before you look to change them you should understand them more to allow you to make an informed choice.
Any ideas? Thanks.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
There will always be fees to operate a service such as a pension.
Do you know what your fees are?
It might be that they can be transferred somewhere with lower fees but you need to know your current terms - and whether there are any safeguarded benefits - before considering that.
I assume they are DC pensions. Who are they with, what is the value and what are the fees. Once you have that info you can get better helpI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
Depends on what you mean by small? Normally pension funds will go up and down over the years, but that is due to movements in financial markets and the effect of fees is much less than that, unless they have some kind of unusual charging structure.lucrecia15 said:I'm planning to retire in the next 24 months and have 3 old pensions currently losing value due to management fees.
I'm still working, nearing 40% tax bracket so I don't really want extra income right now but I'm fed up with seeing these small pensions devalue.
Any ideas? Thanks.
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