Seven pension pots no clue

Albermarle

sixpots said:

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?

Basically yes. You do not need to get involved into too much detail but as a start just make sure you know what the investments are, read the data sheets, see how they have performed over the last 10 years etc . Just start to get a feel for things.
You might find some are in so called Lifestyle plans where the risk reduces as you get nearer retirement, which is not always a good thing.

sixpots

Qyburn said:

MallyGirl said:

Getting yourself below the £50k limit also qualifies you for child benefit in England - not sure if the same is true in Scotland.

That's an interesting point because £50K is not the Higher Rate threshold in Scotland, and I don't think it's exactly 50K in England either. So worth checking. On a related note a Scottish tax payer gets the basic rate PSA as long as he is below the English HR tax band, so could in fact be paying Scottish HR tax but still receive the £1,000 PSA.

So in fact there could be three thresholds to consider.

Thanks I did read that it was English HR tax for PSA, so need to check that also as that was why I thought below 50k for pension contributions. It’s 50271 going by gov site.

Doctor_Who

sixpots said:

Qyburn said:

MallyGirl said:

Getting yourself below the £50k limit also qualifies you for child benefit in England - not sure if the same is true in Scotland.

That's an interesting point because £50K is not the Higher Rate threshold in Scotland, and I don't think it's exactly 50K in England either. So worth checking. On a related note a Scottish tax payer gets the basic rate PSA as long as he is below the English HR tax band, so could in fact be paying Scottish HR tax but still receive the £1,000 PSA.

So in fact there could be three thresholds to consider.

Thanks I did read that it was English HR tax for PSA, so need to check that also as that was why I thought below 50k for pension contributions. It’s 50271 going by gov site.

The Scottish Government can only set non-savings and non-dividend tax rates and bands (effectively earned/pension income), everything else is set by the UK Government. Hence the PSA changing at £50,271, but higher rate Scottish tax (42%) starting at £43,663. 

sixpots

I have now got access to the ageon site, I’m at gate 1 and everything is in the lifestyle fund here. 

Is this appropriate for a 49 year old? I’m looking about and it appears I have 199 pages of funds I can select which I’m not sure where to start? I reckon I need at least 5 times what I currently have in here before I can even think about retiring, if I wanted to can I top up this and or continue to make monthly payments?

Albermarle

sixpots said:

I have now got access to the ageon site, I’m at gate 1 and everything is in the lifestyle fund here. 

Is this appropriate for a 49 year old? I’m looking about and it appears I have 199 pages of funds I can select which I’m not sure where to start? I reckon I need at least 5 times what I currently have in here before I can even think about retiring, if I wanted to can I top up this and or continue to make monthly payments?

Main issue is what kind of lifestyle fund, they probably have more than one.
Has it got a more specific name like Lifestyle annuity or lifestyle drawdown, or does it refer to these in the data sheet/explanation?

sixpots

Albermarle said:

sixpots said:

I have now got access to the ageon site, I’m at gate 1 and everything is in the lifestyle fund here. 

Is this appropriate for a 49 year old? I’m looking about and it appears I have 199 pages of funds I can select which I’m not sure where to start? I reckon I need at least 5 times what I currently have in here before I can even think about retiring, if I wanted to can I top up this and or continue to make monthly payments?

Main issue is what kind of lifestyle fund, they probably have more than one.
Has it got a more specific name like Lifestyle annuity or lifestyle drawdown, or does it refer to these in the data sheet/explanation?

PPDefaultgrowth2035 (Arc) if that means anything 

sixpots

So today I have it confirmed salary sacrifice is available via current employer should I do this or my own? What’s the pRos and cons or is it a no brainier to opt for the salary sacrifice?

xylophone

So today I have it confirmed salary sacrifice is available via current employer should I do this or my own? What’s the pRos and cons or is it a no brainier to opt for the salary sacrifice?

https://www.moneyhelper.org.uk/en/pensions-and-retirement/building-your-retirement-pot/salary-sacrifice-and-your-pension

https://www.gov.uk/guidance/salary-sacrifice-and-the-effects-on-paye