Living on own savings with no /small pension

gorgeousme

 (Dazed_and_C0nfused said:

 I have found out that on top of the management charges/ admin fees of the pension fund, I will lose a few more £’000s when I want to retire because I have to get financial advice by law before I take my pension.

Can you expand on the reason for that?

Excerpt:

Section 48 of the Pension Schemes Act 2015 and regulations made under it require pension scheme members who have subsisting rights in respect of safeguarded benefits worth more than £30,000 under the scheme to take appropriate independent advice from an Financial Conduct Authority

gorgeousme

ouraggie said:

“A DC pension is normally invested , so the only difference between living off investments and living off a DC pension, is that the pension has gained some tax benefits in the past.”

Surely the employer pays a chunk into a DC pension, as well as you, but they don’t pay into your ISA.

I’m self employed 

Marcon

gorgeousme said:

 (Dazed_and_C0nfused said:

 I have found out that on top of the management charges/ admin fees of the pension fund, I will lose a few more £’000s when I want to retire because I have to get financial advice by law before I take my pension.

Can you expand on the reason for that?

Excerpt:

Section 48 of the Pension Schemes Act 2015 and regulations made under it require pension scheme members who have subsisting rights in respect of safeguarded benefits worth more than £30,000 under the scheme to take appropriate independent advice from an Financial Conduct Authority

A Section 48 certificate only applies if you want to transfer a pension with 'safeguarded rights' (either a defined benefit pension; or a defined contribution scheme with some sort of promise or guarantee included in the rules/policy). You don't have to take advice just to take your pension from where it is at present.

Are you still considering transferring as per your earlier thread: https://forums.moneysavingexpert.com/discussion/6333334/transferring-db-pension-to-dc#latest

gorgeousme

Marcon said:

gorgeousme said:

 (Dazed_and_C0nfused said:

 I have found out that on top of the management charges/ admin fees of the pension fund, I will lose a few more £’000s when I want to retire because I have to get financial advice by law before I take my pension.

Can you expand on the reason for that?

Excerpt:

Section 48 of the Pension Schemes Act 2015 and regulations made under it require pension scheme members who have subsisting rights in respect of safeguarded benefits worth more than £30,000 under the scheme to take appropriate independent advice from an Financial Conduct Authority

A Section 48 certificate only applies if you want to transfer a pension with 'safeguarded rights' (either a defined benefit pension; or a defined contribution scheme with some sort of promise or guarantee included in the rules/policy). You don't have to take advice just to take your pension from where it is at present.

Are you still considering transferring as per your earlier thread: https://forums.moneysavingexpert.com/discussion/6333334/transferring-db-pension-to-dc#latest

Yes  I am.  Although this question refers to my dc pension.. like I said, I’m  disillusioned 

Linton

gorgeousme said:

Marcon said:

gorgeousme said:

 (Dazed_and_C0nfused said:

 I have found out that on top of the management charges/ admin fees of the pension fund, I will lose a few more £’000s when I want to retire because I have to get financial advice by law before I take my pension.

Can you expand on the reason for that?

Excerpt:

Section 48 of the Pension Schemes Act 2015 and regulations made under it require pension scheme members who have subsisting rights in respect of safeguarded benefits worth more than £30,000 under the scheme to take appropriate independent advice from an Financial Conduct Authority

A Section 48 certificate only applies if you want to transfer a pension with 'safeguarded rights' (either a defined benefit pension; or a defined contribution scheme with some sort of promise or guarantee included in the rules/policy). You don't have to take advice just to take your pension from where it is at present.

Are you still considering transferring as per your earlier thread: https://forums.moneysavingexpert.com/discussion/6333334/transferring-db-pension-to-dc#latest

Yes  I am.  Although this question refers to my dc pension.. like I said, I’m  disillusioned 

No advice is needed to take normal DC pensions.  Some DC pension  schemes, probably from employer's, with guarantees dating back to the 1990's or before may require advice to transfer. 

MEM62

gorgeousme said:

Just wondering if anyone is living on own savings and investments as opposed to having annuities and drawdown pensions.

Income drawdown is living off your investments.  I just happens that they are in a tax wrapper.  

gorgeousme said:

The value of my pension has dropped and I have found out that on top of the management charges/ admin fees of the pension fund, I will lose a few more £’000s when I want to retire because I have to get financial advice by law before I take my pension.

The value of the investments in your pension go up and go down.  This is normal and it has happened many times to your pot over the years.  Why are you concerned about it now?    

Marcon

gorgeousme said:

Marcon said:

gorgeousme said:

 (Dazed_and_C0nfused said:

 I have found out that on top of the management charges/ admin fees of the pension fund, I will lose a few more £’000s when I want to retire because I have to get financial advice by law before I take my pension.

Can you expand on the reason for that?

Excerpt:

Section 48 of the Pension Schemes Act 2015 and regulations made under it require pension scheme members who have subsisting rights in respect of safeguarded benefits worth more than £30,000 under the scheme to take appropriate independent advice from an Financial Conduct Authority

A Section 48 certificate only applies if you want to transfer a pension with 'safeguarded rights' (either a defined benefit pension; or a defined contribution scheme with some sort of promise or guarantee included in the rules/policy). You don't have to take advice just to take your pension from where it is at present.

Are you still considering transferring as per your earlier thread: https://forums.moneysavingexpert.com/discussion/6333334/transferring-db-pension-to-dc#latest

Yes  I am.  Although this question refers to my dc pension.. like I said, I’m  disillusioned 

If you're disillusioned with your current DC pension, why would you even consider transferring your DB pension to a DC arrangement? Surely that would only compound your woes? The DB pension has valuable guarantees: a certain minimum level of pension for life, increasing in line with guaranteed increases (depending on when you left 'active' membership/the rules of your DB scheme) and almost certainly the option to take some tax free cash at retirement.