Prudential should I add to this or get a new pension

purple15

Hello I am looking fpr some adivce.  I am 53 years old and had a Serps contracted out pension from when I was in my twenties. 
I have not added anything in for 2o years.  The value is now £40k.
Should I get a new pension, or start adding to this.  Is the prudential ok? Or should I see a financial advisor.The money each month should be about £500 a month.

Many thanks

phynix_uk

Unfortunately, this is not an easy question to answer as there simply isn't enough detail.

Are you currently employed and enrolled in your employers scheme? If so, that is likely to be the best place to start. For somebody on here to be able to help we'd need to know all about that scheme. 

If there's no employers scheme then again, we'd need to know what options your Prudential scheme offers. it is likely to offer flexibility in retirement as it sounds like and older DC scheme. What is it invested in, what are the charges, what fund options are available, are there any additional benefits to this scheme etc.... pensions can be complex and it's important to understand everything before making decisions. 

purple15

thank you so much for your reply.
I have the Prudential documents in front of me.
I am currently self employed and have been most of my life.
The prudential pension was when I was employed twenty years ago.  For the last 20 years I have been self employed. Not paying anything into a pension as all my income was going on my mortgage which is now clear.  So I am in a postion to start contributing.  

The prudental was started in 1990.  
It is now worth £40000.
Last years charges were £474 for the year.

My wife is ill and disabled having suffered a stroke. So I was hoping for her to be able to access the pension I choose, if I pass away first.
I just dont know what to do.  Should I see a financial advisor.

cloud_dog

I can't comment on your existing holding with Prudential but I would suggest there are better and cheaper other providers out there.

I do have an AVC account with the Pru and I am counting the days to be done with them.  The struggles I have encountered all started pre-Covid when they introduced a new IT system.  I think it has improved more recently but is still a long way shy of being average.

xylophone

Have you obtained a state pension forecast?

Has your wife?

https://www.gov.uk/check-state-pension

With regard to your personal pension, you might prefer to consider a transfer of this old plan to a modern one which would allow you full flexibility of access ( the older one might not) and to which you could contribute so as to build your retirement savings.

It appears that your wife is unable to work but she could still open a personal pension and contribute up to £2880 per tax year - the pension provider would claim tax relief of £720 add add it to her pot.

You have a wide choice of pension provider- examples

https://moneytothemasses.com/saving-for-your-future/pensions/best-pension-in-the-uk

You might choose a SIPP and select your own investments.

https://monevator.com/passive-fund-of-funds-the-rivals/

https://monevator.com/passive-fund-of-funds-the-rivals/


If you wanted to consult a professional, you could try

https://adviserbook.co.uk/

Tick "confirmed independent" and any other specialism required,

purple15

Thank you for your very detailed response. 
All our ni contributions are up to date for the state pension. 

I think we will speak to a financial advisor. 

Just one more thing. Because of my wife’s I’ll heath she is too disabled to work. Therefore she is on the sickness pay esa contribution one. 

As she claims this benefit would she be allowed to pay into a pension without it effected her benefit. 

Many thanks

sausage_time

I had an old Prudential pension too, and like you had not paid in anything for decades.  I recently transferred it to a modern scheme provided by my current employer - which took just over a week.  The charges and other details of the Pru scheme were very opaque, quite a contrast with my current scheme (big name provider).  Pru sent a financial adviser (from M&G) to review my options and they concluded the best option was moving to my new scheme!  I'm sure Pru would give you similar (tied) advice - it certainly wasn't a hard sell in my case.

xylophone

All our ni contributions are up to date for the state pension. 

But have you each checked your forecasts?

With regard to contributing to a pension, even as a non earner your wife may do this, whether from her benefits or via a gift from you.

When she reaches  SPA, her pension (s) would be taken into account in respect of means tested benefits.

Does she have a pension of her own from the time before she became disabled?

https://www.entitledto.co.uk/help/how_pension_freedom_affects_benefits

purple15

Thank you so much for your detailed replies.
We didnt realise that my wife being on benefits, could open her own pension.

'we have just checked on the government website to see our state pension forecast.  
Having previously contracted out, my forecast is 3 years short.  So I will get the full pension in 3 years.  I have quite a lot of years to work so this is achievable.
My wife has acquired the relevant qualifying years and she will get the full pension .

purple15

My wife does not have any pensions.

Dazed_and_C0nfused

purple15 said:

Thank you so much for your detailed replies.
We didnt realise that my wife being on benefits, could open her own pension.

'we have just checked on the government website to see our state pension forecast.  
Having previously contracted out, my forecast is 3 years short.  So I will get the full pension in 3 years.  I have quite a lot of years to work so this is achievable.
My wife has acquired the relevant qualifying years and she will get the full pension .

If she can afford it it's an easy free £720 each tax year.

£2,880 paid into a personal pension, SIPP or stakeholder pension and the provider will add £720 in basic rate tax relief.  The fact she (presumably) pays no tax is irrelevant.

£3,600 gross which, depending on her other taxable income, can potentially be taken out without paying any tax as well in due course 😉