Pension options and planning

oslamp

Hi I have two main concerns I am looking into.

It is likely my pension will provide for me and my partner. She currently has an endowment policy which is around 7-8 years old and contributes monthly.

I am a freelancer and have a couple of legacy personal pension plans while employed. I want to set up a new plan (I cannot contribute to the existing company plans as I have left), possibly a SIPP.

Questions

1. Would is be better to setup this new plan and transfer existing plans or setup a SIPP as new?
How would companies like Hargreaves Landsdown deal with this. My assumption is that they would recommend the transfer as it would mean a higher fund value
2. What would be the best option for my partners endowment policy?

I like the idea of having one 'pension plan' of some sort and using cash on other investments - ISAs, long term savings etc

Thanks

dunstonh

1. Would is be better to setup this new plan and transfer existing plans or setup a SIPP as new?

depends on the old schemes and what they have to offer (or not).

How would companies like Hargreaves Landsdown deal with this.

They wont give you any advice but they will take your instructions.

My assumption is that they would recommend the transfer as it would mean a higher fund value

They would make no such recommendation as it breach FSA rules. You would have to use an advice service, which HL do offer at a cost, to get advice.

2. What would be the best option for my partners endowment policy?

depends on the quality of the endowment.

I like the idea of having one 'pension plan' of some sort and using cash on other investments - ISAs, long term savings etc

Which probably isnt the best option. A couple should plan their retirement provision together to utilise both personal allowances. You will get a higher income that way as well as death benefits being spread better.

EdInvestor

Post some info on the endowment.

Provider
Guaranteed sum assured
Declared bonuses
Surrender value
Monthly premium
Maturity date
Maturity forecasts

Endowments are obsolete products in most cases and are often better surrendered and replaced with investments in a modern tax free ISA.

As of 2010 all retired individuals will have a tax free annual allowance of c. 10k.So it makes sense to have pension income (which is taxable) up to that level, and other income above that in ISAs (which are tax free.)

The state pension is taxable and will take up part of the allowance. Also note there is no such thing as 'married couples pensions' or 'married couples tax allowances' - it's all done on an individual basis now.