Santander private pension

PoGee

I bank with Santander and have become more familiar with their stocks and shares ISA so was thinking of setting up their private pension also. However, I can't access their pension for 10 years once I start investing. I have a large amount of cash sitting doing nothing so want to invest it - I'm late to this (could not understand investments before now). Are there other private pension where I don't need to wait 10 years? I wouldn't really need the money (private pension) as my nhs pension + rental income will be adequate, if all private pensions say you have to wait 10 years. A private pension would be used for family holidays mainly once the 10 years were up.

MyRealNameToo

PoGee said:

I bank with Santander and have become more familiar with their stocks and shares ISA so was thinking of setting up their private pension also. However, I can't access their pension for 10 years. I have a large amount of cash sitting doing nothing so want to invest it - I'm late to the investing game (could not understand it before now). Are there other private pension where I don't need to wait 10 years? I wouldn't really need the money (private pension) as my nhs pension + rental income will be adequate, if all private pensions say you have to wait 10 years. A private pension would be used for family holidays mainly once the 10 years were up.

So how old are you now? 

You generally can't draw down from a pension until you are 55 without some fairly heavy tax penalties. 

PoGee

I'm 59 years

dunstonh

Are there other private pension where I don't need to wait 10 years?

No pensions have 10-year tie-ins (and that includes Santander).  All of them are accessible within 24-48* hours, provided you are over the minimum retirement age of 55.

*although service standards of some products may not be that quick. Historically, bank products tend to be at the weaker end.

Marcon

In that case you are old enough to invest in pretty much any personal pension product and draw the cash as and when you see fit. No idea what Santander is offering that has a 10 year wait! Could you share a link please? Sounds odd.

Bear in mind that there's a limit to how much you can pay into a pension scheme if you want to get tax relief on the contribution. In broad terms, it's your gross earned income (ie not savings interest, dividends or similar) minus any amounts contributed to a pension in the same tax year by you/your employer. 

The most you can contribute in a tax year is £60K (including tax relief on your personal contributions, plus any employer contribution), unless you have scope for 'carry forward':  https://www.moneyhelper.org.uk/en/pensions-and-retirement/tax-and-pensions/carry-forward. You'd normally need to be earning at least £60K before you can utilise carry forward.

dunstonh

No idea what Santander is offering that has a 10 year wait! Could you share a link please? Sounds odd.

It is on their website but its a target market statement rather than a product term.

PoGee

I went onto my Santander Investment Hub and clicked 'add/transfer', with a private pension being one of the 'add/transfer' options available. It then gives a brief outline of their private pension and asks when I want to retire. If I click anything less than age 69, I get the following message 
Please note we are currently unable to accept applications where you are intending to retire in the next 10 years.
I called them and they said that was correct, that I couldn't access the money until age 69.

Marcon

PoGee said:

I went onto my Santander Investment Hub and clicked 'add/transfer'. It then gives a brief outline of their private pension and asks when I want to retire. If I click anything less than age 69, I get the following message 
Please note we are currently unable to accept applications where you are intending to retire in the next 10 years.
I called them and they said that was correct, that I couldn't access the money until age 69.

So they don't want the faff of dealing with short term investors. Just pick another provider!

Dazed_and_C0nfused

PoGee said:

I went onto my Santander Investment Hub and clicked 'add/transfer'. It then gives a brief outline of their private pension and asks when I want to retire. If I click anything less than age 69, I get the following message 
Please note we are currently unable to accept applications where you are intending to retire in the next 10 years.
I called them and they said that was correct, that I couldn't access the money until age 69.

But they don't have your money yet.

Why not just choose a provider that meets your needs?

PoGee

Marcon said:

PoGee said:

I went onto my Santander Investment Hub and clicked 'add/transfer'. It then gives a brief outline of their private pension and asks when I want to retire. If I click anything less than age 69, I get the following message 
Please note we are currently unable to accept applications where you are intending to retire in the next 10 years.
I called them and they said that was correct, that I couldn't access the money until age 69.

So they don't want the faff of dealing with short term investors. Just pick another provider!

Santander platform fees are 0.35%. I'll read through the MSE page on best SIPPs and see if another one looks like a good choice. 

kempiejon

0.35% can be reduced. Handy broker comparison chart. https://monevator.com/compare-uk-cheapest-online-brokers/

Perhaps a bit more learning on pensions, some guides here https://www.moneyhelper.org.uk/en/pensions-and-retirement