Should I see a IFA

Sarahspangles

katelina said:

Ohhhhh we have holidays don't you worry and that is what I don't want to give up lol 

I'm thinking to just transfer the Standard Life to Scottish widows to tidy everything up and I think its transferrable and free to transfer.
We don't have huge wages and are able to manage on husbands wage if we didn't have a Mortgage. We are very careful with our money and don't have any habits other than our holidays. 
Some of us dream of huge pension pots but for us it wasn't to be

So are you able to start your own pension into payment and clear the mortgage? How much are you short?

MallyGirl

katelina said:

MallyGirl said:

katelina said:

Sarahspangles said:

katelina said:

The one I have is a Defined Benefits Pension with WTW.
The RR one is a DB one that husband has the other 2 not.
Also should we transfer the 22k Standard Life one to his present one with Scottish Widows and just leave his RR one till he retires?
I guess we'll just have to tighten our belts a little next year. Damn the government for changing the pension age

Normally the Defined Benefit pensions are the ones to keep. It’s possible to put a nominal value on a DB pension but you’re not comparing like for like with DB and DC pensions. DB pensions usually have some degree of inflation proofing and spouse pension.

You could consider how much interest you are paying on your mortgage, and how long it is fixed for. Then whether it makes sense to pay into a pension or pay off your mortgage more quickly. 

Fixed ends in May, We don't or won't have enough cash to pay it off, even if I pay the £22k off the mortgage I will still have a mortgage of around £20 k then to find money for each month and £270 a month pension isn't going to cover that and a holiday a year.

If that £22k is "£22k with Standard Life from a previous employer" that your husband has then you won't get £22k out since it will be liable for income tax at your husband's prevailing rate.
It doesn't sound like you can afford a holiday so that will probably have to wait till you get the state pension as well as the DB ones.

Ohhhhh we have holidays don't you worry and that is what I don't want to give up lol 
I'm thinking to just transfer the Standard Life to Scottish widows to tidy everything up and I think its transferrable and free to transfer.
We don't have huge wages and are able to manage on husbands wage if we didn't have a Mortgage. We are very careful with our money and don't have any habits other than our holidays. 
Some of us dream of huge pension pots but for us it wasn't to be

yes you might be able to transfer the old SL into the current workplace one with Scottish Widows. He will have to ask SW. They might say no to transfers in. He won't be able to draw down from it whilst still working and contributing. Are you planning to retire at the same time? If not then all you have available to pay off a chunk of the mortgage while he still works is whatever PCLS you are entitled to from your DB pension. Generally the advice tends to be to maximise the pension for the rest of your life by minimising the PCLS - it depends on how your pension grows - CPI/RPI and whether it is capped.

katelina

Sarahspangles said:

katelina said:

Ohhhhh we have holidays don't you worry and that is what I don't want to give up lol 

I'm thinking to just transfer the Standard Life to Scottish widows to tidy everything up and I think its transferrable and free to transfer.
We don't have huge wages and are able to manage on husbands wage if we didn't have a Mortgage. We are very careful with our money and don't have any habits other than our holidays. 
Some of us dream of huge pension pots but for us it wasn't to be

So are you able to start your own pension into payment and clear the mortgage? How much are you short?

Sorry I don't know what you mean. I really am pension illiterate. To clear the mortgage at the moment I would need £44500. The 25% tax free amount is approx £22/23k so not enough to pay the morgage. Hence I thought I could use it to give me an income each month of approx. £600 that with the £270 a month pension I will get will be enough to cover the mortgage,

LHW99

katelina said:

Sarahspangles said:

katelina said:

Ohhhhh we have holidays don't you worry and that is what I don't want to give up lol 

I'm thinking to just transfer the Standard Life to Scottish widows to tidy everything up and I think its transferrable and free to transfer.
We don't have huge wages and are able to manage on husbands wage if we didn't have a Mortgage. We are very careful with our money and don't have any habits other than our holidays. 
Some of us dream of huge pension pots but for us it wasn't to be

So are you able to start your own pension into payment and clear the mortgage? How much are you short?

Sorry I don't know what you mean. I really am pension illiterate. To clear the mortgage at the moment I would need £44500. The 25% tax free amount is approx £22/23k so not enough to pay the morgage. Hence I thought I could use it to give me an income each month of approx. £600 that with the £270 a month pension I will get will be enough to cover the mortgage,

Is the motgage a repayment one (hopefully fixed rate)? If so, you could do what you suggest for income, but pay a bit of spare in each month. Even if it were only an extra £20 per month, it would reduce the final amount that has to be paid off / slightly shorten the term. Even fixed rate mortgages usually allow you to make a small overpayment (often up to 10% of the amount outstanding at the beginning of the year) without penalty.

MallyGirl

katelina said:

Sarahspangles said:

katelina said:

Ohhhhh we have holidays don't you worry and that is what I don't want to give up lol 

I'm thinking to just transfer the Standard Life to Scottish widows to tidy everything up and I think its transferrable and free to transfer.
We don't have huge wages and are able to manage on husbands wage if we didn't have a Mortgage. We are very careful with our money and don't have any habits other than our holidays. 
Some of us dream of huge pension pots but for us it wasn't to be

So are you able to start your own pension into payment and clear the mortgage? How much are you short?

Sorry I don't know what you mean. I really am pension illiterate. To clear the mortgage at the moment I would need £44500. The 25% tax free amount is approx £22/23k so not enough to pay the morgage. Hence I thought I could use it to give me an income each month of approx. £600 that with the £270 a month pension I will get will be enough to cover the mortgage,

25% of what? Are you calculating 25% of the transfer value of your DB pension? Assuming that you will progress with that plan?
As previously mentioned, you would need to pay for advice to progress this transfer - prices for this fall somewhere in the range of £5k to £10k. This would be a big chunk from the transfer value.

katelina

MallyGirl said:

katelina said:

Sarahspangles said:

katelina said:

Ohhhhh we have holidays don't you worry and that is what I don't want to give up lol 

I'm thinking to just transfer the Standard Life to Scottish widows to tidy everything up and I think its transferrable and free to transfer.
We don't have huge wages and are able to manage on husbands wage if we didn't have a Mortgage. We are very careful with our money and don't have any habits other than our holidays. 
Some of us dream of huge pension pots but for us it wasn't to be

So are you able to start your own pension into payment and clear the mortgage? How much are you short?

Sorry I don't know what you mean. I really am pension illiterate. To clear the mortgage at the moment I would need £44500. The 25% tax free amount is approx £22/23k so not enough to pay the morgage. Hence I thought I could use it to give me an income each month of approx. £600 that with the £270 a month pension I will get will be enough to cover the mortgage,

25% of what? Are you calculating 25% of the transfer value of your DB pension? Assuming that you will progress with that plan?
As previously mentioned, you would need to pay for advice to progress this transfer - prices for this fall somewhere in the range of £5k to £10k. This would be a big chunk from the transfer value.

The 25% tax free that you're allowed to take when you take your Pension.
My quotes for taking my pension next year are not much different to the transfer value. As in If I take the 25% tax free lump sum that would be £22k with approx £270 a month pension.

eskbanker

katelina said:

MallyGirl said:

katelina said:

Sarahspangles said:

katelina said:

Ohhhhh we have holidays don't you worry and that is what I don't want to give up lol 

I'm thinking to just transfer the Standard Life to Scottish widows to tidy everything up and I think its transferrable and free to transfer.
We don't have huge wages and are able to manage on husbands wage if we didn't have a Mortgage. We are very careful with our money and don't have any habits other than our holidays. 
Some of us dream of huge pension pots but for us it wasn't to be

So are you able to start your own pension into payment and clear the mortgage? How much are you short?

Sorry I don't know what you mean. I really am pension illiterate. To clear the mortgage at the moment I would need £44500. The 25% tax free amount is approx £22/23k so not enough to pay the morgage. Hence I thought I could use it to give me an income each month of approx. £600 that with the £270 a month pension I will get will be enough to cover the mortgage,

25% of what? Are you calculating 25% of the transfer value of your DB pension? Assuming that you will progress with that plan?
As previously mentioned, you would need to pay for advice to progress this transfer - prices for this fall somewhere in the range of £5k to £10k. This would be a big chunk from the transfer value.

The 25% tax free that you're allowed to take when you take your Pension.
My quotes for taking my pension next year are not much different to the transfer value. As in If I take the 25% tax free lump sum that would be £22k with approx £270 a month pension.

You can indeed take 25% of the value of a DC pension pot tax-free, but DB pensions are different, precisely because there is no clearly-defined pot value.  A DB pension may offer a Pension Commencement Lump Sum, which may approximate to 25% of the transfer value, but various other figures are also possible.  However, if your pension provider has given you a quote for the applicable PCLS then that's what you need to know....

bjorn_toby_wilde

katelina said:

MallyGirl said:

katelina said:

Sarahspangles said:

katelina said:

Ohhhhh we have holidays don't you worry and that is what I don't want to give up lol 

I'm thinking to just transfer the Standard Life to Scottish widows to tidy everything up and I think its transferrable and free to transfer.
We don't have huge wages and are able to manage on husbands wage if we didn't have a Mortgage. We are very careful with our money and don't have any habits other than our holidays. 
Some of us dream of huge pension pots but for us it wasn't to be

So are you able to start your own pension into payment and clear the mortgage? How much are you short?

Sorry I don't know what you mean. I really am pension illiterate. To clear the mortgage at the moment I would need £44500. The 25% tax free amount is approx £22/23k so not enough to pay the morgage. Hence I thought I could use it to give me an income each month of approx. £600 that with the £270 a month pension I will get will be enough to cover the mortgage,

25% of what? Are you calculating 25% of the transfer value of your DB pension? Assuming that you will progress with that plan?
As previously mentioned, you would need to pay for advice to progress this transfer - prices for this fall somewhere in the range of £5k to £10k. This would be a big chunk from the transfer value.

The 25% tax free that you're allowed to take when you take your Pension.
My quotes for taking my pension next year are not much different to the transfer value. As in If I take the 25% tax free lump sum that would be £22k with approx £270 a month pension.

How much would the pension be if you didn’t take the lump sum?

Qyburn

LHW99 said:

Is the motgage a repayment one (hopefully fixed rate)? If so, you could do what you suggest for income, but pay a bit of spare in each month. Even if it were only an extra £20 per month, it would reduce the final amount that has to be paid off / slightly shorten the term. Even fixed rate mortgages usually allow you to make a small overpayment (often up to 10% of the amount outstanding at the beginning of the year) without penalty.

I can't see where the OP mentioned their current mortgage interest rate. It wouldn't make sense over paying if they're on a low rate at th moment.

LHW99

Qyburn said:

LHW99 said:

Is the motgage a repayment one (hopefully fixed rate)? If so, you could do what you suggest for income, but pay a bit of spare in each month. Even if it were only an extra £20 per month, it would reduce the final amount that has to be paid off / slightly shorten the term. Even fixed rate mortgages usually allow you to make a small overpayment (often up to 10% of the amount outstanding at the beginning of the year) without penalty.

I can't see where the OP mentioned their current mortgage interest rate. It wouldn't make sense over paying if they're on a low rate at th moment.

Depends. I get the impression that money is possibly tight, and they don't want to still be paying off in 7 or so years time. On that basis, it could be a) worth reducing the outstanding capital as on a repayment mortgage that could either leave less to pay each onth, because the monthly payments could be reduced over time b) reduce the capital amount such that they could choose to pay the remainder a little earlier with a lower lump sum (from the OH's pension?) c) sometimes the psychological benefit of getting it paid off is important