Aged 51 - five pensions and not sure what to do.

peteuk

Im looking for some advise on they way forward.

Pension 1 - took out at 22 has about 6 months payments in it, stopped because at due to a change of employment I couldnt have a private pension.

Pension 2 - currently paying me £12K a year, this will remain until 55 where it increases by CPI

Pension 3 - provider unknown - six months of employer pension

Pension 4 - Provider know - 18 months of employee pension

Pension 5 - Current employee pension, 18 months and continuing.

There is a potential 6th from when i was a student nurse but I think i opted out of it.

I know I cant do anything until aged 55 with pensions 1,3 and 4.  If I take a lump sum can I take it all (given these are such small amounts) 

xylophone

Will Pension 5 accept a transfer in of 1, 3 and 4? 

Brie

Sounds like you might have some DC pensions given your age but you'll need to find out.  a short membership was often refunded whether DC or DB but it would be good to know what the actual situation is.

Do you have any contact with any of the administrators?  getting annual benefit statements or whatever?  That's you base line of info.  AND check to see if your current employer scheme will let you transfer the tiddly ones in - just to keep things tidy.  

If you don't know if you have a pension but know the employer you can do a check for the admin via the pension tracking service  - Find pension contact details - GOV.UK (www.gov.uk)

An alternative is to go via Aviva find and combine service - Transfer your Pension - Aviva.  They will trace what they can and then you will have the option (but no obligation) to combine them in an Aviva pension.  Might not be sensible if the fees are too high for small amounts of income.

And given that the amounts will likely be small you may be able to get the full amount paid out at 55 or at your normal retirement date.

Curious to know why one pension is paying you - already - possibly widow's benefit or similar?

Also - don't forget to get a State Pension forecast just to ensure you get the full picture.  I found getting mine very reassuring.
Check your State Pension forecast - GOV.UK (www.gov.uk)

Silvertabby

Pension 2 sounds like the Armed Forces.  Not only will it be index linked at 55, it will also be restored to its pre commutation value ( if you did (term)  commute when you left - ie, gave up some of your pension for more tax free cash).

peteuk

Brie said:

Curious to know why one pension is paying you - already - possibly widow's benefit or similar?

It’s an Armed Forces pension, so as I did 24 yrs it pays out on leaving rather than waiting until pensionable age. As @Silvertabby has mentioned, I was given a choice to take a bigger lump sum (tax free) for a % of my monthly pension.  At the age of 55 this payment finishes and the pension is CPI linked.  

I didn’t take the extra - so in 4 years it will increase by CPI, Im also waiting my new offer as per McCloud - should be with my by 01 April 2025.

Albermarle

 If I take a lump sum can I take it all (given these are such small amounts) 

Once you reach 55 ( or 57 by 2028) you can withdraw as much as you like. 25% will be tax free and the rest will count as taxable income and added to your current taxable income. 

peteuk

Albermarle said:

 If I take a lump sum can I take it all (given these are such small amounts) 

Once you reach 55 ( or 57 by 2028) you can withdraw as much as you like. 25% will be tax free and the rest will count as taxable income and added to your current taxable income. 

Of course…I was born in 73 turn 55 in 2028.  So I’ve now got 6 yrs to work it out.

cfw1994

If the value of the pots is below £10k, you can cash them in under the “small pots” rule.  Google for various descriptions of it.  

You could also check the options available with Pensionwise - a free consultation, funded by the Government.  Note, they will not provide ‘advice’, but ought to be able to clarify things for you.