Looking at pensions I've paid into so far. What should I be looking at? Where do I start?

NeverendingDMP · 8 June 2018 at 8:34AM

Hello all. I'm not far off 40 and think I should maybe try to understand what I have in pensions and whether I will have anything in them.

I have a life time isa. Newly opened with about £20 in. Presently I'm in financial difficulty which I am managing but means any extra funds go to debts not pensions. I opened the Lisa as someone said you have to open before 40 and it keeps my options open for later.
Hubby has no real pensions but now contributes as everyone is required to and I told him he couldn't opt out.

I've had two works pensions that I've contributed to for 5-6 years each . I now work for the NHS (been there 18 months. Low band low wage.)
I'm having technical problems accessing my pension statement- long story -but I put approx 5,% if my wage in and NHS put something towards as well. Don't know what-never got a copy of my contract either ! Once the issues are sorted I should be able to access an online statement apparently to show my fund.

What do I need to look at/ ask for find out to see where I stand.

I obviously need to contact each pension company but what am I asking for/what am I looking at. Do I just ask for a statement and if so will I understand it??

Any advice on where to begin is very welcome.
Thanks all

Brynsam · 8 June 2018 at 9:25AM

Good for you for tackling an issue many prefer to quietly ignore for as long as possible!

Contact each pension provider and ask for 'an up to date statement'.

Will you understand them? Sensible question. Possibly not, in which case either come back here with any specific queries, or contact TPAS and have a chat with them (free, impartial): https://www.pensionsadvisoryservice.org.uk

misswansea · 8 June 2018 at 9:40AM

Hi

As you have joined the NHS after 2015 you will be in the 2015 pension scheme.
It's a Defined Benefit (DB) career average scheme. It is a good scheme but a bit complicated to understand
You can download the 2015 members guide, that your employer should have given you, from the bottom of this page of the nhs pensions agency site:
https://www.nhsbsa.nhs.uk/member-hub
Take some time to read it, they explain it better than I can.

For other pensions contacting each pension provider to ask for a statement would be a good start. This should tell you how much you have saved, and the name of the pension so you can look up each scheme to find out how your money is invested and details that will help work out whether it's a good place to keep your pension.

Even if you don't have any extra to put into pensions right now it's a great idea to keep track of where all your money is, anything you don't understand you can ask here, there's lots of very knowledgeable and helpful folk about.

atush · 8 June 2018 at 11:42AM

Have you been tot he debt free board for help with your outgoings?

once you knock the debt down, yo'll really be able to save.

NeverendingDMP · 8 June 2018 at 4:02PM

Thanks all. First step I will get statements and find out where money is being held. Thankyou for all the links it will be a great help in knowing where to start. I'll keep plugging my current work to sort access to my pensions account/statement. I'll likely post again with some obvious questions but I'd rather start to understand it than just see things and guess/ignore.
Debt wise yes I'm a visitor to the forum's and am learning a lot. It will be slow progress as my wage is a third of what it was three years ago but it's in hand and there is a plan. I'm almost certain being debt and mortgage free will happen a few years sooner if I continue visiting mse. I figured whilst trying to get my finances in order I should look at the pension to eh !

Thrugelmir · 8 June 2018 at 6:31PM

NeverendingDMP wrote: »

Debt wise yes I'm a visitor to the forum's and am learning a lot. It will be slow progress as my wage is a third of what it was three years ago but it's in hand and there is a plan.

At least there's good news for you today. With Unions voting to accept the 3 year pay deal. Should be in your July packet as well. Backdated to 1st April. Lower paid staff benefit the most.

NeverendingDMP · 8 June 2018 at 6:56PM

It's fantastic news. I'm going to be £80 a month better off after deductions. I'm so glad it's all sounding definate now. It's been a long three months waiting for the vote. Roll on July x
And I will now have more going in the pension pot ha ha.

NeverendingDMP · 8 June 2018 at 7:08PM

I've just had a quick look through the NHS pension link from miss Swansea. If I've read it right the NHS as my employer put a really decent percentage in. Should be interesting reading when I understand it all and can compare my pension pots.

crv1963 · 9 June 2018 at 6:56AM

NeverendingDMP wrote: »

I've just had a quick look through the NHS pension link from miss Swansea. If I've read it right the NHS as my employer put a really decent percentage in. Should be interesting reading when I understand it all and can compare my pension pots.

The thing to remember and some struggle with the concept, is that when you look at your TRS or Total Rewards Statement the figures are for a "notional pot" as in that money isn't sitting there with your name on, but is the value of what your and the NHS Employer have paid in, and a promise to pay x amount. The value comes to you at the point of retirement as your pension commences payment.

All current contributions are used to pay existing NHS pensioners, a bit like National Insurance isn't a "pot" but is used (along with general taxation) to pay pensions and fund the NHS.

NeverendingDMP · 15 June 2018 at 11:47AM

Well I've had a look and it seems I have money spread across three places as well as my NHS pension. I'm 39

One defined benefit scheme that was worth 1236 when I left. Lady said it's not invested as such it just sits there and kind of increases with inflation. A current statement is on its way but a 2015 statement I have said a pension at retirement of 1505 based on that years statement date with an estimated pension of 3079. This is a guess I think with estimated inflation between now and then.
Am I right in thinking the 1505 is what I would get paid each year or is that split between all my years of retirement-hope not.

The other two are

One that is invested with a plan value? Of 18932. This says 756 per annum now and estimated 904 at retirement. Could this go up or down as it's invested?

One that is valued at 1363 with an estimate of 579 lump sum then 40 per annum at retirement.

The NHS one I'm still struggling for up to date figures but I've but putting 50 ish a month in for 21 months. Am I writing in thinking that when the statement comes it will refer to the NHS employer contribution but this is the future promise if what they will add to what I have put in.myself when I get retirement age as opposed to a fund in my name that might increase with interest like other pensions?

Lots of questions there I know. The main question for any kind person who reads this and understands it is do I have a starting point. I know I need to save more but Are my pension privisions at this stage non horrendous, bad, fair, normal? Please be honest.

AlanP_2 · 15 June 2018 at 1:06PM

Answers and comments in blue below.

NeverendingDMP wrote: »

Well I've had a look and it seems I have money spread across three places as well as my NHS pension. I'm 39

One defined benefit scheme that was worth 1236 when I left. Lady said it's not invested as such it just sits there and kind of increases with inflation. A current statement is on its way but a 2015 statement I have said a pension at retirement of 1505 based on that years statement date with an estimated pension of 3079. This is a guess I think with estimated inflation between now and then.

It is their best guess, yes, with some underlying, accepted logic based on economic conditions and predictions.

Am I right in thinking the 1505 is what I would get paid each year or is that split between all my years of retirement-hope not.

Each and every YEAR :beer:

The other two are

One that is invested with a plan value? Of 18932. This says 756 per annum now and estimated 904 at retirement. Could this go up or down as it's invested?

Yes, although over a 15-25 years you would expect it to go up as it has over previous longer term time periods. Under current rules you won't have to take it as £904 per year, you can leave it invested and treat it as a "bank account" almost. Take either a regular income, or use it for holidays etc. I wouldn't worry too much about that for now as it is so far off. Concentrate on the size of the pot growing over time - with what can appear very scary dips at times but anticipated longer term growth. If you can find out what it is actually invested in (there will be fund names somewhere) then come back here I am sure people will be able to comment on any alternatives with the same pension company that might be worth considering

One that is valued at 1363 with an estimate of 579 lump sum then 40 per annum at retirement.

As for the one above.

The NHS one I'm still struggling for up to date figures but I've but putting 50 ish a month in for 21 months. Am I writing in thinking that when the statement comes it will refer to the NHS employer contribution but this is the future promise if what they will add to what I have put in.myself when I get retirement age as opposed to a fund in my name that might increase with interest like other pensions?

It probably won't refer to the NHS contribution. Instead it will give you an indicated annual pension value like your deferred one. I am in the Local Gov scheme and my statement shows what the pension would be if I had left at statement date, so "today" effectively, and what it will likely be at normal, scheme retirement age assuming no change of job, pay rises or anything.

The NHS contribution doesn't matter to you as you have a "promise" to pay you £x per year from a certain date. If the NHS investments lose millions they still have to pay you what they said they would. Their contribution will vary every few years and is what specialist advisers calculate they need to pay in to keep on track based on number of pensioners, age of workforce, number of staff etc.

NHS scheme is great, as are all the public sector schemes, as at the end of the day if there isn't enough money in the pension pot the Gov't steps in and covers the bill. Great for employees, not so good for taxpayers though.

Lots of questions there I know. The main question for any kind person who reads this and understands it is do I have a starting point. I know I need to save more but Are my pension privisions at this stage non horrendous, bad, fair, normal? Please be honest.

Certainly not great, but probably above normal as many people have none which is why Auto Enrolment has been brought in.

You are now starting on the right path though. Thinking about it, checking what you have and asking for help. The two DB schemes are invaluable as they give a guaranteed level of income and you will have your State Pension as well. I suggest you get an up to date State Pension forecasts for both of you as well while you are in "pension mode"

While you ares sorting out your overall financial situation you are limited on what else you can do for now but try to encourage your other half to add a bit extra to his scheme as and when he can. If, for example he gets a pay rise put some of that into the pension if at all possible, over time it all grows and accumulates.

Whether you will have enough pension to meet what you need and want when retired is personal. There is a "What's your Number" thread on here, some people say £12k a year is enough for them, others want £50k or more to do everything they want to do. Worth giving some thought to your "number" at some stage.

Good Luck.

Looking at pensions I've paid into so far. What should I be looking at? Where do I start?

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