Pension advice

[ren531]

I have 3 workplace pensions two dormant one with hundreds in the other with a handful of thousands in and I am wondering if I should combine them together with the current one, I'm sixty and there is never going to be a lot in them I've only had them running since 2014.
Are they safer split up, if one goes bust at least I will have the others.
Also is it more beneficial upping my monthly contributions or is it just a good in a savings account at my age, I'm aware of the tax benefits of pensions but putting that aside, is there much if any gain.
I am going to book an appointment with the free government pension advice service but thought I would ask here for opinions before I do.

 

[Rusty Nails]

I have 3 workplace pensions two dormant one with hundreds in the other with a handful of thousands in and I am wondering if I should combine them together with the current one, I'm sixty and there is never going to be a lot in them I've only had them running since 2014.
Are they safer split up, if one goes bust at least I will have the others.
Also is it more beneficial upping my monthly contributions or is it just a good in a savings account at my age, I'm aware of the tax benefits of pensions but putting that aside, is there much if any gain.
I am going to book an appointment with the free government pension advice service but thought I would ask here for opinions before I do.

There are so many things to think about with personal pensions that it is virtually impossible for anyone who does not know your personal and financial circumstances to give you anything other than very general stuff that may, or may not, be relevant to you.
Pensions versus savings/investments depends on so many things like tax benefits, ISA rates, having money tied up and you have taken the right first step in getting in touch with the pension advice service. One piece of advice is to make sure you are clear about what you want to ask them in the phone call and also that you have details of the amounts and dates involved as well as your own broad income and tax band details to hand.

 

[13 rider]

As above and also if you have a planned age to retire at the earlier the more you want to save now .

 

[Sharky]

Are they safer split up, if one goes bust at least I will have the others.

My understanding is that pension funds are ring fenced from the original firm, so the likes of pensions from the likes of BHS, Burton etc are probably still going.

But something to check with your finance advisor.

 

[glasgowcyclist]

Also is it more beneficial upping my monthly contributions or is it just a good in a savings account

There isn’t a savings account anywhere that’ll give your money the 25% boost that your pension contributions get. In the years leading up to my recent retirement I was putting in the maximum I could afford, which left me taking home the equivalent of the minimum wage. That has paid huge dividends for me.

 

[ren531]

There are so many things to think about with personal pensions that it is virtually impossible for anyone who does not know your personal and financial circumstances to give you anything other than very general stuff that may, or may not, be relevant to you.
Pensions versus savings/investments depends on so many things like tax benefits, ISA rates, having money tied up and you have taken the right first step in getting in touch with the pension advice service. One piece of advice is to make sure you are clear about what you want to ask them in the phone call and also that you have details of the amounts and dates involved as well as your own broad income and tax band details to hand.

This is a problem a lot of us have with pensions /savings, its so complicated more so if like me you have spent your life in practical employ and avoid "paperwork" at all cost.
I shall put a list of info and questions together ready before I have my appointment.

 

[ren531]

There isn’t a savings account anywhere that’ll give your money the 25% boost that your pension contributions get. In the years leading up to my recent retirement I was putting in the maximum I could afford, which left me taking home the equivalent of the minimum wage. That has paid huge dividends for me.

Interesting hearing about your experience, this is the big question do I pile more in for the last few years, this is my main question for the free pension service.

 

[PeteXXX]

Do pension companies still charge a fair bit in admin fees to merge pensions?
I seem to remember that they used to but maybe that's changed now.

 

[sevenfourate]

Interesting hearing about your experience, this is the big question do I pile more in for the last few years, this is my main question for the free pension service.

The free pension service advice (via telephone) i received last year upon becoming eligible - by turning 50 - was a complete waste of time if I’m honest.

Repeatedly came out with the ‘we are not financial advisors’ type spiel and generalised about most points I asked on, didn’t appear willing or able to comment on my situation specifically; ending with a summary being sent to me by email which included links to various general online information I likely could / would have found myself had I searched.

If it was offered it again I genuinely wouldn’t bother. All it did for me was (perhaps) reiterate the fact I needed to put more aside to provide the pot I needed to retire comfortably when I intended. Which I’d already worked out without their ‘help’ anyway……

If my experience is typical I can’t answer.

Good luck !

 

[PaulSB]

Personally I would consolidate all three into one pot. Your state pension age will be 67 so you have 6-7 years to go. At age 55 I was fortunate to pay off my mortgage and put every spare penny into my pension before retiring seven years later at 62. Those seven years of contributions made a huge difference to my retirement fund.

I should stress other factors, my wife's redundancy payout mainly, allowed me to retire at 62 not just the extra savings.

There is no better way to save at this point. No savings account will give you 25%.

You might consider finding a good independent financial advisor. They do a far, far better Job than many give them credit for.

 

[Psamathe]

I've a number of private pension funds and periodically think about what to do with them. I an recently mid-60's so could start annuity/tax lump sum/drawdown/... but can't decide so for the moment they stay where they are.

My personal view, which will be different for different people:
Advice is impossible. Talk to the pension companies and all they can say is what I can do (legal options and tax implications subject to ...). They keep trying to push me to an IFA who will charge £1500 plus (as stated by the pension companies). And all that IFA will do is ask me about risk, income, etc. all questions I can think about. Once you have the answers to those obvious questions best thing to do is easier to work out for yourself. For the moment I'm making do without the pension pots/income. In 10 years time income from annuity will likely be very different from what one would get now (you are older and UK/world financial situation will be different). So I'm delaying making a decision whilst I don't need to, whilst I'm coping happily without on the basis that as the need to decide gets closer my situation will be different and options of the pension will be very different (amounts, annuity income, etc.).

But everybody is in a different position so above is how I see things for my personal position.

Ian

 

[ren531]

The free pension service advice (via telephone) i received last year upon becoming eligible - by turning 50 - was a complete waste of time if I’m honest.

Repeatedly came out with the ‘we are not financial advisors’ type spiel and generalised about most points I asked on, didn’t appear willing or able to comment on my situation specifically; ending with a summary being sent to me by email which included links to various general online information I likely could / would have found myself had I searched.

If it was offered it again I genuinely wouldn’t bother. All it did for me was (perhaps) reiterate the fact I needed to put more aside to provide the pot I needed to retire comfortably when I intended. Which I’d already worked out without their ‘help’ anyway……

If my experience is typical I can’t answer.

Good luck !

Thanks for the insight and your experience.

 

[midlife]

Horses for courses really, I had a pension pot of about £30000 which translates to about £1000 a year plus a bit of a lump sum.

I cashed it in to pay for a house move a few years ago as not quite sure what £1000 a year would be worth in real money when I retired.

 

[ren531]

I've a number of private pension funds and periodically think about what to do with them. I an recently mid-60's so could start annuity/tax lump sum/drawdown/... but can't decide so for the moment they stay where they are.

My personal view, which will be different for different people:
Advice is impossible. Talk to the pension companies and all they can say is what I can do (legal options and tax implications subject to ...). They keep trying to push me to an IFA who will charge £1500 plus (as stated by the pension companies). And all that IFA will do is ask me about risk, income, etc. all questions I can think about. Once you have the answers to those obvious questions best thing to do is easier to work out for yourself. For the moment I'm making do without the pension pots/income. In 10 years time income from annuity will likely be very different from what one would get now (you are older and UK/world financial situation will be different). So I'm delaying making a decision whilst I don't need to, whilst I'm coping happily without on the basis that as the need to decide gets closer my situation will be different and options of the pension will be very different (amounts, annuity income, etc.).

But everybody is in a different position so above is how I see things for my personal position.

Ian

Very difficult to reach any clear conclusions with any of this, I guess this is why I've just left it be for so long.

 

[glasgowcyclist]

Interesting hearing about your experience, this is the big question do I pile more in for the last few years, this is my main question for the free pension service.

The return cannot be beaten by any savings account so, for me at least, it’s a no-brainer. For every forty quid you put in, the chancellor adds another tenner! Show me any other legal scheme that even comes close to bringing you that kind of benefit.

My wife’s still working and she’s been putting in over 50% of her salary for several years now.

Work out how much you can afford to pay in each month and do it. You can always adjust it again.