Deferred Private Pension Lump Sum

Marcon

So, would I be best to explore new pensions for us both or just continue with savings as we are now?

Nobody here can answer that because it's impossible to know, especially when there is so little information on which to proceed. But there's plenty you can do to help yourself make an informed decision:

• google on 'pensions v ISA' and you'll get lots of information from the main investment houses (and other organisations such as Which) on the relative merits of each form of saving
• have a look at https://www.moneyhelper.org.uk/en/pensions-and-retirement and (a) do some reading and (b) book a free appointment with PensionWise (info included on that link) to learn more about how defined contribution pensions 'work', including how to access the benefits (lump sum/drawdown/annuity).

It would make sense to get your wife a bit more involved in all this, however reluctant she may be (she is not alone!). Statistically you'll outlive her purely on the grounds of age, but statistics aren't always borne out in practice. Losing your life partner and coping with grief is bad enough, but having to start dealing with finances when 'my partner always did that' adds a whole new level of distress.

Just as an aside - hopefully you both have valid, up to date wills and powers of attorney…?

Fee82

Thank @Marcon - really helpful again.

I've spent 25yrs trying to get my wife to join me with the finances. She's better than she was but still not fully involved. I have however made a 'incase I die' document with everything she'd need to know. Not ideal but can't force her I guess.

We have wills but not power of attorney. I shall look into whether this is something we could do ourselves (I did our wills as they were pretty straight forward).

I will follow the resources you've suggested to give me advice around pensions for us. Ideally I would go to someone who knows more about this stuff than I do but never sure who to trust. Many years ago we had an Independent Financial Advisor that we worked with to build savings to offset our mortgage. When we decided to use some of the savings to buy a new home he was REALLY not happy with us…. it then became clear that he was profitting from the savings account he had advised us to use. Since then it's made me reluctant to trust and put our money in the wrong persons hands…. how do you know that the advice you are being given is the right advice when you don't know/understadn all the option???

Thanks again for your support….. it's truly appreciated.

Albermarle

The rules for IFAs changed at some point ( 15 years ago ??) and they can no longer take any commission from any products they recommend for you. They make their money only from the fees they charge you.

It is a highly regulated business, and if they were to ever recommend something to you that was unsuitable for your circumstances, you can sue them. They all have to hold professional indemnity insurance. Of course if they recommend something suitable, but the bottom drops out of the market, than that is part of investing and not the IFAs fault.

No doubt there are a few bad apples, just like any business, but in general trust is not really that much of an issue as they all have to follow the same regulations.

Of course you may not like someone, or they may charge too much etc but that is the same with any business.

We have wills but not power of attorney. I shall look into whether this is something we could do ourselves (I did our wills as they were pretty straight forward).

On these forums it is normally not recommended to do your own wills, but that is your decision of course. For POA it is relatively easy to DIY them, although some people prefer to uses a solicitor.

Make, register or end a lasting power of attorney: Make a lasting power of attorney - GOV.UK

Fee82

Thanks @Albermarle

I've been through the process of LPA before as our adult son has significant learning disability and we have to make decisions around most areas of his life.

In regards to me and my wife, would we simply take one out each and name the other person….. for our son we had to prove he couldn't be independent (there was a social worker involved) but I'm guessing for us it's just making clear that we want each other to make decisions if we are in a position where we can't make decisions for ourselves in the future.