Seven pension pots no clue

sixpots

Seriously looking at my pension provision and trying to get head round it. 

49 years old, mortgage free, savings 80k, higher rate tax payer in Scotland. Have full state pension contributions. 

initial thoughts are pay into personal Pension/sipp or salary sacrifice. Get proper IFA advice. I have two decent pension pots 100k and 60k, the rest are smaller under 10k. My thinking is to consolidate into one as I feel I’m just paying more fees that necessary. Concern is now how to manage these going forward hence IFA? Won’t be 50 until next June as would go pension wise, anything similar available before 50?

Marcon

sixpots said:

Seriously looking at my pension provision and trying to get head round it. 

49 years old, mortgage free, savings 80k, higher rate tax payer in Scotland. Have full state pension contributions. 

initial thoughts are pay into personal Pension/sipp or salary sacrifice. Get proper IFA advice. I have two decent pension pots 100k and 60k, the rest are smaller under 10k. My thinking is to consolidate into one as I feel I’m just paying more fees that necessary. Concern is now how to manage these going forward hence IFA? Won’t be 50 until next June as would go pension wise, anything similar available before 50?

Just having separate pots doesn't mean you are paying 'more fees than necessary' since virtually all modern contracts (and given your age, yours are likely to be classed as 'modern') are based on a %age of the pot value. Some modest discounts are available for very large pots, but they aren't a no brainer since other factors such as choice of fund(s), online access to information etc all need to be taken into account.

PensionWise gives guidance not advice, so although they can often provide valuable basic information for those who like you feel they have 'no clue', they won't be able to advice you to consolidate, move etc.

This is quite an old article but the points made are still valid and still helpful: https://www.thisismoney.co.uk/money/pensions/article-3550085/STEVE-WEBB-merge-small-pension-pots.html

dunstonh

 My thinking is to consolidate into one as I feel I’m just paying more fees that necessary. 

1 pension at 1% is 1%.  7 pensions at 1% is still 1%.   So, the quantity of pensions itself doesn't matter.   However, many some providers/platforms have tiered charges that reduce the percentage as the value goes up.   Plus, if the pensions are old, they could be on older more expensive charges (some old ones can also be valuable gems worth keeping - not everything old is bad)

Won’t be 50 until next June as would go pension wise, anything similar available before 50?

Pensionwise would not help you.  They do not give advice and what you are after appears to be outside of their remit.

sixpots

Ok so I need an IFA?

molerat

An IFA would advise you for a fee.

With all the information people here will point you in the right direction FOC and you can then decide if you want to engage an IFA and be better informed when talking to them.

Albermarle

initial thoughts are pay into personal Pension/sipp or salary sacrifice.

If you can make workplace pension contributions via salary sacrifice, this is usually the best ( and easiest route).

As others have pointed out consolidation may have some benefits but not a major factor. More important is how the pension(s) are invested . Are the investments suitable for your age, situation etc. This is where an IFA can be helpful, or you can start to learn more about investing yourself. There are plenty of resources on the internet and this forum can be a useful source.

xylophone

If after doing some research you feel that you would benefit from professional advice you could try

https://adviserbook.co.uk/

 You would tick "confirmed independent" and  then "pensions and retirement" together with adviser qualification level and fee structure required.

You would then ring round for initial discussion.

Qyburn

sixpots said:

Seriously looking at my pension provision and trying to get head round it. 

49 years old, mortgage free, savings 80k, higher rate tax payer in Scotland. Have full state pension contributions. 

Can you afford to increase pension contributi9ns enough to take you out of higher rate tax?

sixpots

Qyburn said:

sixpots said:

Seriously looking at my pension provision and trying to get head round it. 

49 years old, mortgage free, savings 80k, higher rate tax payer in Scotland. Have full state pension contributions. 

Can you afford to increase pension contributi9ns enough to take you out of higher rate tax?

Yeah I could, and if it brings forward my retirement age I’d be very keen on doing so. 

Dazed_and_C0nfused

sixpots said:

Qyburn said:

sixpots said:

Seriously looking at my pension provision and trying to get head round it. 

49 years old, mortgage free, savings 80k, higher rate tax payer in Scotland. Have full state pension contributions. 

Can you afford to increase pension contributi9ns enough to take you out of higher rate tax?

Yeah I could, and if it brings forward my retirement age I’d be very keen on doing so. 

Pension contributions are very generous tax relief wise when you are a higher rate payer.

As a Scottish higher rate payer you could be getting 20% added to your pension pot (which is 25% of your net contribution) plus paying more tax at 20/21% and less at 42%.

RAS contributions also reduce your adjusted net income so can reduce any HICBC which might be payable.

They can also mean you have a larger savings nil rate band (£1,000 taxed at 0% rather than just £500).

And become eligible for Marriage Allowance.

sixpots

Albermarle said:

initial thoughts are pay into personal Pension/sipp or salary sacrifice.

If you can make workplace pension contributions via salary sacrifice, this is usually the best ( and easiest route).

As others have pointed out consolidation may have some benefits but not a major factor. More important is how the pension(s) are invested . Are the investments suitable for your age, situation etc. This is where an IFA can be helpful, or you can start to learn more about investing yourself. There are plenty of resources on the internet and this forum can be a useful source.

So do you mean is my pension invested in the right “funds” is the risk correct etc?