To transfer or not to transfer , IFA’s differ in opinion.

OldiesNiece

Malthusian, the way I had it explained to me was that they kept 40 odd thousand out of the secure bit as this represented the tax free lump sum…which was pretty stupid as the tax free lump sum will be 25pc of the overall fund as I understand it, therefore you might end up taking a bit out of the secure income bit to top it up to 25 pc. It really is rubbish.

what innovative ideas you had…they are very appealing and suit my nervous nature.

You are totally right I haven’t got the stomach for fluctuations and I will have 5 years max before I draw it, so I get your thinking there.

I love idea 3, the five year thing, but maybe make it 3 years to err on the side of caution.?

I also love idea 2…switch it into cash now. If I put it on fixed term deposit, would gilt yields affect this please.

OldiesNiece

Pat, forgot to thankyou for your words of wisdom , a lot to think about there.

OldiesNiece

Ps .How would I go about taking a 3 year non income immediate needs annuity? Would I have to see someone again or can it be done online through an annuity company? I have read about Hargreaves’s landsdowne and also pension bee.

OldiesNiece

Pops. Malthusian or anyone , if you are reading this. What is the name of a non income fixed term annuity please? And do I take the tax free lump sum out first? Thankyou. Feeling a little more calm at the thought of having some options.

Albermarle

 Looked at workplace pension scheme and because of low pay n hours it wasnt worth the bother to her

Naturally posters hesitate to offer detailed personal financial advice . However regarding the above I am happy to say that you should join your workplace pension. Nor sure what the 'bother' is because normally you have to make just as much as an effort to opt out of it than into it !

Unless the pay is very low .

QrizB

GoldenOldy said:

Good morning all. Golden here. Niece gone to work, will be back this afternoon. Shes not paying into a pension as wouldnt want to pay into the metlife one, and doesnt think itll be worth setting up new one if only at work for a short while longer. Looked at workplace pension scheme and because of low pay n hours it wasnt worth the bother to her.

As Albermarle says, choosing to not join her current workplace pension means she is giving up part of her pay (the employer contributions) unless she's paid so little she doesn't qualify for them.

Regarding setting up a new personal pension, there are tax breaks that are essentially "free money" available to her every year until she is 75 years old, even once she has retired her income is low enough that she does not pay tax. There's a huge thread on it (too long to read all of) and a recent shorter one here:
https://forums.moneysavingexpert.com/discussion/6435853/provider-shortlist-for-2880-per-year-pension

(It comes up regularly on this forum, a search for 2880 will find dozens of threads.)

Emmia

Albermarle said:

 Looked at workplace pension scheme and because of low pay n hours it wasnt worth the bother to her

Naturally posters hesitate to offer detailed personal financial advice . However regarding the above I am happy to say that you should join your workplace pension. Nor sure what the 'bother' is because normally you have to make just as much as an effort to opt out of it than into it !

Unless the pay is very low .

I don't really understand why anyone would not join an employer pension, especially if they pay in... free money, what's not to like?

GoldenOldy

Morning again,
Yes paying into a pension seems a good idea although she would have to open a new oe and then maybe draw it in a few years? Also if she mixes the metlife one and puts it into a timed annuity with no income payable, am not sure if you can pay into one and draw out simultaneously?
By the way, thanks for all this. She is really grateful for the patience you have shown.
 Its a tricky situation as she gets overwhelmed when she doesnt understand things first time, and needs clarification and she worries people get cross especially in a face to face situation. She seems to pick up on any minor sign of irritation or disapproval. So this has really helped.

GoldenOldy

Ps. She is also conscious that real life advisers , to use her words , seem to want to do ‘big things’ with the pension, and are a bit underwhelmed by the cautious approach.!

Malthusian

OldiesNiece said:

I also love idea 2…switch it into cash now. If I put it on fixed term deposit, would gilt yields affect this please.

Nothing affects fixed term deposits other than the bankruptcy of the bank (which still means you get all your money back from the FSCS, as long as you stay under £85,000 per banking licence).
The main issue with fixed term deposits is that only a niche selection of pension providers offer them. Or full SIPPs (which are complicated and more expensive to open). A good independent adviser would make it easier to find one. 

Ps .How would I go about taking a 3 year non income immediate needs annuity? 

Pedantic point: an "immediate needs annuity" is something different, it is for people in care homes. You are talking about a "fixed term annuity". It would be very advisable to see an IFA to take one out, as if you don't, you will still likely end up paying commission but won't get advice.

GoldenOldy said:
Yes paying into a pension seems a good idea although she would have to open a new oe and then maybe draw it in a few years? 

How many other ways are available to earn free money by filling in a few forms?

If she ends up with a small pension at the end (less than £10,000) she can straightforwardly get the money out by taking it as a "small pot lump sum".