What Should I Do

Unkle_2

Hi

I’m employed and 36

I had a Canada Life Personal Pension (with Serps) and I chose to increase it, at the time I had to get a 2nd little pension from Canada Life as I couldn’t increase the original one. Then I stopped contributing to them both for approx 5 years as I was self employed and couldn’t afford it.

I am now employed and my employer doesn’t have a pension scheme so I am in a position to make a very small contribution to a pension again. But its only £100 per month, so is it worth it?

The value in the existing pensions with Canada Life is very small. And I assume that I am also paying admin fees on both as well?.

Should I start 1 back up with Canada life and leave the other to reduce with annual fees?
Should I start them both up and pay the fees on both? (if that is the case)
Should I transfer to another pension provider? (moving both to one provider)
And is a Stakeholder or other savings advisable for a low contributor as an alternative to the above Canada Life Schemes?


For the sort of values I am talking about it seems like I won’t be looking at much in the long run, but I feel I must put it into something while i can, even if it is very little…


Thanks In advance

Unkle

EdInvestor

You need to find out a bit about the existing pension(s).

What is its current value
What is its transfer value
Annual charges
Fund(s) it is invested in and other fund choices
Any guarantees applicable

Then an opinion can be given about whether it should be moved and if so, where to.

Before talking about making additional private pension payments, have you checked what your position is with the state pension? If there is any contribution shortfall, this should be attended to first. Check here:

https://www.thepensionservice.gov.uk

It is likely also that you should contract back in to the state second pension if your general pension provision is very low.If you don't take action on this, rebate money will start flowing into your Canada Life pension again.

Unkle_2

Ok thanks,

I will look into these questions, but we are only talking about a few thousand, nothing like the figure others discuss on here lol. I know i should have kept it going or starting earlier, and even now i should know what I have and haven't got. Terrible situation to get into

dunstonh

£100 pm net is a start and at 36 it is an acceptable start. See if you can increase it each year, maybe £10 a go to make up it.

Canada Life's pension should be reviewed and costed against modern alternatives (anything pre 2001 should be).

Unkle_2

The fund is
3000 & 692

and the transfer value is 2962 and 692

I will be going to see my bank HSBC in a few weeks about the Stakeholder pension they do, don't know if its any good but it must be better than 2 small ones that i get charged for. I think the HSBC is 1% charges but with the mountain of Canada life paperwork i can't reall see a definitive figure for how much they charge...

dunstonh

I will be going to see my bank HSBC in a few weeks about the Stakeholder pension they do, don't know if its any good

Its rubbish. Actually its not rubbish. Its a bog standard stakeholder offering bog standard funds. Better are available but worse are available too.

HSBC, being insurance sales reps will not be able to advise on the Canada Life pension. From next year, HSBC will not be able to give financial advice as the FSA has proposed that all tied and multi-tied agents will not be able to give anything other than very basic advice (more or less using a flow chart). You need an IFA. Not an insurance salesman.

Unkle_2

Ok i will cancel that meeting

Unkle_2

I contacted the pension service which in turn told me to ring Inland Revenue, boy what a nightmare. The call system was so busy that for 2 full days it said "we are busy, please call back later" and then the phone went dead!!

Anyway I found out that back as far as they can tell (1996) I have no pension shortfall. So some good news as I was self employed around 2001 to 2004.

The funds I have with Canada Life are in:

Multi Investment INI PS4 & British Blue Chip Ini PS4

I hope this makes sense, as i'm not really looking to do anything special or risky for the future just, if possible, reduce my fees and check if starting these 2 pensions back up is worth it, or possibly just transfer it to a Personal Pension with Cavendish or something simple like that...


Anyway thanks again in advance