Where to invest pension pot?

lon_85

Hi everyone

My mum will be retiring in 2 years- we have got 3 corporate pension pots that have just been released  - total around £60k - any suggestions where to invest this? I've opened aj bell account for the money to be transferred into but haven't chosen any funds yet. Is vanguard life strategy 60/65/80 a good choice?

Dazed_and_C0nfused

lon_85 said:

Hi everyone

My mum will be retiring in 2 years- we have got 3 corporate pension pots that have just been released  - total around £60k - any suggestions where to invest this? I've opened aj bell account for the money to be transferred into but haven't chosen any funds yet. Is vanguard life strategy 60/65/80 a good choice?

Could you clarify exactly what you mean by this?

Is the £60k still within a pension wrapper or has she taken it out of the pension?

lon_85

The £60k is out of the pension pots now - in aj bell holding account but I haven't chosen any funds to invest into yet. 

Qyburn

You variously say "Mum", "we", but then "I've opened ..". Is all this £60K from your mum's pensions? Without more detail it's hard to say but I'd be thinking either put £20K into an ISA, or if it's more than one person's money you could each put £20K into accounts one in each name.

Qyburn

Add if she's still working she could pay into a private pension, up to her earnings.

artyboy

I suppose the other question begged here is why £60k was suddenly taken out of pensions (with all the resulting tax liability) without a clear purpose for using it... but that boat has sailed...

MallyGirl

if it is in an AJ Bell holding account maybe this just means in an AJ Bell pension but held in cash. Hopefully it does mean that otherwise there would have been an expensive mistake made by the OP's mum.

Albermarle

artyboy said:

I suppose the other question begged here is why £60k was suddenly taken out of pensions (with all the resulting tax liability) without a clear purpose for using it... but that boat has sailed...

That was also my immediate thought, what was the reason for taking the money out. Was it just because it was available I wonder ? Not a very good reason though....

lon_85

Reason for taking it out -my mum did not want to claim the pension in smaller installments as she has had health problems and does not want to risk waiting. She isn't working at the moment due to health condition. Yes this is all my mums pension- she doesn't speak English well and doesn't know how to use Internet so I'm helping and supporting her with this. 

dunstonh

My mum will be retiring in 2 years- we have got 3 corporate pension pots that have just been released  - total around £60k - any suggestions where to invest this?

Pension could well be the best option.  i.e. not taking them out in the first place.  Its daft paying tax for no reason.  However, as that is already done and tax paid, then putting them back into the pension for the next decade or so will likely be the next best thing.   But it cannot be done in one go unless there happens to be over £60k of earnings in this tax year.

MeteredOut

Was the £60K just the tax free cash element of the pension (25%) or a larger/full amount?