Approaching 60 - Pension Sanity Check
Discussion
I'd be the first to admit that my pension set-up is very much at the low end but I'm comfortable to live like that as I approach a time where I am no longer working.
I recently opened a SIPP and I have been refunded the basic rate income tax for the last 4 years.
In addition to this I have 4 company pensions all with low amounts of money as of this month.
A = a retail bank - my first job 1990s (3 years)
B = 1990s (2 years)
C = 1990s (2 years)
D = 2021 (1 year only)
Apart from D all pensions will start paying out at 60. D will start at 65.
I am currently working and don't plan to retire before 65.
Should I just transfer all the above into my SIPP or leave A where it is since it is a final salary pension and doing much better than the others
Thanks.
I recently opened a SIPP and I have been refunded the basic rate income tax for the last 4 years.
In addition to this I have 4 company pensions all with low amounts of money as of this month.
A = a retail bank - my first job 1990s (3 years)
B = 1990s (2 years)
C = 1990s (2 years)
D = 2021 (1 year only)
Apart from D all pensions will start paying out at 60. D will start at 65.
I am currently working and don't plan to retire before 65.
Should I just transfer all the above into my SIPP or leave A where it is since it is a final salary pension and doing much better than the others
Thanks.
What years in the 1990s were you in scheme A? (Looks like pre-1997.)
What was your salary at date of leaving?
What annual increases are made to pensions in deferment? (i.e. waiting)
What annual increases are awarded to pensions in payment?
Do you have an OH, wife or whatever? If so, what are their arrangements?
The significance is there's mandatory indexation (limited) of pension earned after April 1997. However, some well funded schemes may apply indexation to earlier years as well and/or apply full CPI indexation.
But either way, the likelihood is you will leave A where it is and consolidate the money purchase arrangements into your SIPP.
What was your salary at date of leaving?
What annual increases are made to pensions in deferment? (i.e. waiting)
What annual increases are awarded to pensions in payment?
Do you have an OH, wife or whatever? If so, what are their arrangements?
The significance is there's mandatory indexation (limited) of pension earned after April 1997. However, some well funded schemes may apply indexation to earlier years as well and/or apply full CPI indexation.
But either way, the likelihood is you will leave A where it is and consolidate the money purchase arrangements into your SIPP.
Panamax said:
What years in the 1990s were you in scheme A? (Looks like pre-1997.)
What was your salary at date of leaving?
What annual increases are made to pensions in deferment? (i.e. waiting)
What annual increases are awarded to pensions in payment?
Do you have an OH, wife or whatever? If so, what are their arrangements?
The significance is there's mandatory indexation (limited) of pension earned after April 1997. However, some well funded schemes may apply indexation to earlier years as well and/or apply full CPI indexation.
But either way, the likelihood is you will leave A where it is and consolidate the money purchase arrangements into your SIPP.
1990-1993What was your salary at date of leaving?
What annual increases are made to pensions in deferment? (i.e. waiting)
What annual increases are awarded to pensions in payment?
Do you have an OH, wife or whatever? If so, what are their arrangements?
The significance is there's mandatory indexation (limited) of pension earned after April 1997. However, some well funded schemes may apply indexation to earlier years as well and/or apply full CPI indexation.
But either way, the likelihood is you will leave A where it is and consolidate the money purchase arrangements into your SIPP.
£15k
will need to find out
will need to find out
no OH
Greenmantle said:
A = a retail bank - my first job 1990s (3 years)
B = 1990s (2 years)
C = 1990s (2 years)
D = 2021 (1 year only)
B = 1990s (2 years)
C = 1990s (2 years)
D = 2021 (1 year only)
I don't know that I am reading this correctly.
If the figures in brackets are your time in pensionable employment, then does that mean during a 35 year career so far, you only have 8 years of accrued employers pension?
Don't move anything until you know the exact benefits that you are giving up.
e.g.
- Some have grandfathererd access dates that don't transfer.
- some have bulk negotiated low fee arrangements
- If it is a DB, then be careful as the benefit is likely worth more than the transfer value.
- etc
And my understanding is that reading the small print is a nightmare and in some cases, the only way to get the actual answer on some of the details is to write / speak to the company which is a pita.
That said, if you can ascertain that the benefits are of little value to you, then moving them to a low-fee fund in a low fee SIPP platform probably does make sense. (and you might end up wishing you'd done so years' ago)
You may need to get proper advice to do it though.
e.g.
- Some have grandfathererd access dates that don't transfer.
- some have bulk negotiated low fee arrangements
- If it is a DB, then be careful as the benefit is likely worth more than the transfer value.
- etc
And my understanding is that reading the small print is a nightmare and in some cases, the only way to get the actual answer on some of the details is to write / speak to the company which is a pita.
That said, if you can ascertain that the benefits are of little value to you, then moving them to a low-fee fund in a low fee SIPP platform probably does make sense. (and you might end up wishing you'd done so years' ago)
You may need to get proper advice to do it though.
Jon39 said:
Greenmantle said:
A = a retail bank - my first job 1990s (3 years)
B = 1990s (2 years)
C = 1990s (2 years)
D = 2021 (1 year only)
B = 1990s (2 years)
C = 1990s (2 years)
D = 2021 (1 year only)
I don't know that I am reading this correctly.
If the figures in brackets are your time in pensionable employment, then does that mean during a 35 year career so far, you only have 8 years of accrued employers pension?
fat80b said:
Don't move anything until you know the exact benefits that you are giving up.
e.g.
- Some have grandfathererd access dates that don't transfer.
- some have bulk negotiated low fee arrangements
- If it is a DB, then be careful as the benefit is likely worth more than the transfer value.
- etc
And my understanding is that reading the small print is a nightmare and in some cases, the only way to get the actual answer on some of the details is to write / speak to the company which is a pita.
That said, if you can ascertain that the benefits are of little value to you, then moving them to a low-fee fund in a low fee SIPP platform probably does make sense. (and you might end up wishing you'd done so years' ago)
You may need to get proper advice to do it though.
thanks - I've got just under a year to sort this all out hence the thread to make a start.e.g.
- Some have grandfathererd access dates that don't transfer.
- some have bulk negotiated low fee arrangements
- If it is a DB, then be careful as the benefit is likely worth more than the transfer value.
- etc
And my understanding is that reading the small print is a nightmare and in some cases, the only way to get the actual answer on some of the details is to write / speak to the company which is a pita.
That said, if you can ascertain that the benefits are of little value to you, then moving them to a low-fee fund in a low fee SIPP platform probably does make sense. (and you might end up wishing you'd done so years' ago)
You may need to get proper advice to do it though.
Even with such limited info (limited pension provision), I would still be incline to retain the DB pension as it's your banker / fixed income for the rest of your life. It may not be a huge sum at first, but it will increase by RPI (or CPI as some schemes have sneakily revised the terms).
Played a round of golf at my old club last week, and met an old boy / regular who was out on the course, George who is 89 years young! He worked in the City many years back (Bankers Trust for those old enough to remember!), and left with a DB pension which has served him well for 30 years.
Gilt rates is over 5% last time I checked, so probably not ideal for cashing out the DB either (unlike the near 0-1% back in 4-5 years ago!)
Played a round of golf at my old club last week, and met an old boy / regular who was out on the course, George who is 89 years young! He worked in the City many years back (Bankers Trust for those old enough to remember!), and left with a DB pension which has served him well for 30 years.
Gilt rates is over 5% last time I checked, so probably not ideal for cashing out the DB either (unlike the near 0-1% back in 4-5 years ago!)
fat80b said:
You may need to get proper advice to do it though.
A worthy comment. However, based on the information given I fear it's highly unlikely the cost of seeking such advice could be justified.Those most recent 4 years,
What type of scheme?
How much employer contribution? (if Defined Contribution)
How much employee contribution?
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