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bally3
#1 Posted : 03 March 2018 19:06:43(UTC)
bally3

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hi , if anyone has sound advice feel free to chip in, 

i have really basic understanding of how it all works and whats best to do...

 

ok. i have 3 private pensions from late 80's , early 90's with the CO-OP   ( now ROYAL LONDON )  , I've not paid into them for 20+ yrs due to me being with company pensions )

each pension holds between 4-5k. (total 13k approx )

 

i also have a mineworker pension (10 years )

 

then for the last 23 yrs i have worked at the same place although its been taken over twice (so have 3 separate pensions here too )

the first 2 pensions here are DB (defined benefit )  the last and current pension is DC (defined contribution )

 

(I HOPE AT LEAST SOMEONE IS STILL WITH ME HERE , YOU CAN'T ALL HAVE NODDED OFF.) . .....

 

SO.....the questions are ,   (1)     can i transfer the 3 private pensions into my current DC scheme or  other scheme.??......

 

                                        (2)    should i transfer them .  what are the pro' and con's ??

 

the reason i ask, is i'd like to just tidy things up a bit , trying to understand what i have ( or have not ).......looking to retire in 8yrs 

 

any advice welcome , but really appreciate someone with financial training.......

 

thanks in advance.

 

 

 

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Scottishfiver on 10/03/2018(UTC)
BlueBird67
#2 Posted : 03 March 2018 19:18:01(UTC)
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Let me start by saying I’m in no way qualified for financial e pair me but I have worked in the sector for 30+ years

Yes you can consolidate your private pensions to a single pot - but each provide will charge you for transferring, thus eating Into your savings. Apart from admin, you are unlike to gain anything

The annuity rates should be the same whether to draw against 1 large pot or 3 smaller pots

Given those values, you may be able to cash them all in - you can then stick the cash into a ISA and take the income / withdraw capital tax free😀

Whatever you do, do NOT transfer your DB plan - unless you think it is at risk (ie currently has a significant funding shortfall. Your latest statement and report will tell you)

bally3
#3 Posted : 03 March 2018 19:24:54(UTC)
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bluebird , thanks.

yes i believe i can cash the 3 co-op pensions at age 55, so could put in ISA , but wondered if more financially savvy to transfer.

yes my pit pension is doing good and the DB pensions too.
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Drumtochty
#4 Posted : 03 March 2018 19:46:07(UTC)
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Do not transfer a DB scheme anywhere unless you know you can get a better deal, the risk is on the pension provider to give you that pension, not you to do tricks to try and get a reasonable income out of the pension pot that you get.

You appear to know this.

The three old DC pensions are what are called trivial pensions due to their small value. If you want to do your homework, you have to look at the return that each pension gave you over say the last few years and what the charges are and compare that to what your latest DC pension gives re returns and charges.

The other way is to put the three old ones into a SIPP and that lets you do the choosing on your investment but not everyone feels they are up to doing that.

Final issue is if you transfer rather than take the money for retirement the three trivial pension providers can take a discount off what you get. If you are over 55 there is a way round that.

I'm not a financial adviser.

Have you got an up to date state pension forecast. Google personal tax account if not and set one up and that allows you to get an up to date state pension forecast and there may or may not be an opportunity there to buy some years but that is not a given unless you check that out.
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Drumtochty
#5 Posted : 03 March 2018 19:54:48(UTC)
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I see Bluebird has already advised on the DB side of things. What age do you intend to retire at and how many years is that away as the small pensions will be taxed at your level of taxation of what you earn now and then add 75% of the small pension values. They may or may not be advantageous to do before retirement.

You may want to take this to PM as we are getting a bit into personal stuff here and again I'm not a financial adviser but resonable at fixing MX5's.

Edited by user 03 March 2018 19:57:12(UTC)  | Reason: Not specified

Eddie Cairns

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bally3
#6 Posted : 03 March 2018 20:37:29(UTC)
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looking (hoping ) to retire in 8yrs @ age 60
1991 mk1 mariner blue
2007 mk3 starlight silver
2006 mk3 galaxy grey
2007 mk3 true red,
2002 mk2.5 sunlight silver


Roadie
#7 Posted : 03 March 2018 20:38:21(UTC)
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I'll agree with the previous poster, don't let go of the defined benefit schemes.

Don't be frightened by what looks like a huge drop in income when you retire. Remember you will no longer be paying in to a pension scheme and your tax bill will drop considerably.

Think about what you are likely to need. It's the early years when you get to do the exciting expensive things. In the later years you probably will slow down and not need to spend so much. Taking a larger lump sum means you can use the pot when you need it but make sure you are still going to have enough income as the years go on.

A financial advisor once told me something that really sank in. Some people say they have property and savings as their pension. However big a pot you start off with it is possible to spend it. A pension income will always be there.

It's a fine balancing act and everybody is in a different situation.

First thing to ask yourself is what financial situation you want to be in at retirement and what ongoing pension you need.

Then you can work out if you can get there with your various pensions.

If you can't get there then you've got eight years to fine tune things. You never know, the figures might be better than you think.

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Sonue
#8 Posted : 03 March 2018 20:51:46(UTC)
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I am a qualified independent financial adviser with 35 years experience.

I will be happy to guide you (free gratis) but best to do so via PM.

Whilst many have provided some guidance it is by no mean complete and I urge you to ensure you have a full understanding before settling on any course of action. The consequences of making a wrong decision will affect your retirement.

I hope this is helpful.

 

Grant

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bally3
#9 Posted : 03 March 2018 20:54:55(UTC)
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thanks all.

just to clarify , i'm not wanting to touch my DB pensions ,

its the 3 small private pensions that i would like advice on , either , A...to leave as is till i retire , B...transfer to my DC scheme or C...cash in at 55yrs old and put money in an ISA .

many thanks again fellas

Edited by user 03 March 2018 20:58:34(UTC)  | Reason: Not specified

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2007 mk3 true red,
2002 mk2.5 sunlight silver


MickAP
#10 Posted : 03 March 2018 21:18:33(UTC)
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Not giving any advice re pensions only to say if you cash in the three small pension amounts stick them in interest paying current bank accounts. ISA's are more or less dead to take out and put new money in, rates are pitiful now.

 

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Sonue
#11 Posted : 03 March 2018 21:25:18(UTC)
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This is a very generalised view.

Many excellent stocks and shares portfolio's (within an ISA tax free wrapper) are performing well. Obviously risk and reward needs to be considered but many fund groups offer risk rated portfolio's and or targeted returns.

 

ISA's are not dead.

 

In all cases when considering making financial decisions you would do well to consult with a professional.

 

Eunos Roadster S Limited.
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bally3 on 06/03/2018(UTC)
Roadie
#12 Posted : 03 March 2018 22:46:05(UTC)
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Sounds to me like Grant (Sonue) could be the answer to your prayers.

Well worth taking his advice.

Just don't ask him if it's a good financial decision to spend money on a 5. Sometimes the heart beats the head.

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Gerryn on 18/01/2019(UTC)
bally3
#13 Posted : 04 March 2018 10:45:13(UTC)
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thanks for all replies and extra help from grant
1991 mk1 mariner blue
2007 mk3 starlight silver
2006 mk3 galaxy grey
2007 mk3 true red,
2002 mk2.5 sunlight silver


tooslow
#14 Posted : 04 March 2018 12:41:19(UTC)
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DB schemes are fine, but are relative. I cashed in one of the ones I had because although the return was guaranteed it was very low. If I put the money on the table and just took each year what the pension was going to give me it was going to be 37 years before the table was bare. So I've take the money and re-invested. In the last to years it has grown 5 years worth of payments that I would have received...if that makes sense . i.e I now have 42 years worth on the table

I would strongly advise professional advice

Edited by user 04 March 2018 13:21:10(UTC)  | Reason: Not specified

Drumtochty
#15 Posted : 04 March 2018 22:17:28(UTC)
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Originally Posted by: tooslow Go to Quoted Post

DB schemes are fine, but are relative. I cashed in one of the ones I had because although the return was guaranteed it was very low. If I put the money on the table and just took each year what the pension was going to give me it was going to be 37 years before the table was bare. So I've take the money and re-invested. In the last to years it has grown 5 years worth of payments that I would have received...if that makes sense . i.e I now have 42 years worth on the table

I would strongly advise professional advice

Agree with your final statement but the others are confusing as the DB pension would not stop after 37years if you live that long but it would still be paying out and may well include inflation rises.

At the moment you say you have the equivalent of 42 years payments but the old scheme would not stop at 37 years. Further your funds are in the market and could decrease well below your original value or increase where the old scheme would not have that risk of decreasing or for that matter reward if they increase.

As always it is not a simple decision to cash in a DB scheme unless you have a very good cash boost given by the pension provider. It could well be that you were in that situation.

 

Eddie Cairns

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Drumtochty
#16 Posted : 04 March 2018 22:34:10(UTC)
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Originally Posted by: bally3 Go to Quoted Post
looking (hoping ) to retire in 8yrs @ age 60

Two good things here you have an offer of help from a poster that is not to be ignored.

You have three years to make a decision before you reach 55 under normal circumstances re the "trivial pension pots" pension jargon not bad mouthing the amounts. 

That is plenty time to research online to get some knowledge of pensions in order to make it easier for you to understand the advice you will be given which can be difficult to get your head round if you are not good with numbers.

It also may let you understand better the tax situation which may or may not make a difference.

Good luck on making the correct decision.

 

 

 

Eddie Cairns

99 Mk2 1.8IS
08 Mk3 2.0 Sport RC sold
18 Mk4 2.0 GT+
Drumtochty Glen, Auchenblae, Laurencekirk,
Aberdeenshire
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bally3 on 06/03/2018(UTC)
Scottishfiver
#17 Posted : 10 March 2018 10:00:20(UTC)
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Just on the subject.....

Our son has been Armed Forces for ten years, and to be fair has saved 50% of his salary for 8 of them after I dragged him kicking and screaming to the Nationwide 7 years ago, resulting in multiple tens of thousands sav ed towards a 50% deposit on his first home when he comes out next year to join Police Scotland. 

What he steadfastly refused to buy into was a personal pension portfolio, which both SWMBO & I did 30 years back...thank God..resulting in a dignified Occupational + State + Personal pension existance not make us wealthy by any stretch, but at last there is a monthly surplus because we are very careful with the pennies so the pounds take care of everything else.

When I pointed out to him the so called Living Wage for burger flippers etc is pretty much double (per hour) the State Pension in net terms...his eyes popped out. Actually, based on an imaginary 37.5 hours per week, the male State works out net at around £4.40 hour..in pretend wage terms. He will not get even that till he is 67...if ever. 

OK..he will have a small Army pension, and hopefully Police pension, but who knows what the cost of living is going to like by then?

I would respectfully urge any Millennials "living for today" who habitually squander on take aways, multiple Starbucks rubbish bla bla to give themselves a bloody good shake and consider their potential "in the gutter" future. There will be nobody to help you come the day. Plenty warnings out there, so only yourselves to thank.  

Said son is home for two weeks R&R next week....and has an appointment with a local (excellent) financial guru. At last.  

 

Edited by user 10 March 2018 12:07:49(UTC)  | Reason: Not specified

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Countryboy
#18 Posted : 10 March 2018 10:45:02(UTC)
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Originally Posted by: Scottishfiver Go to Quoted Post

Just on the subject.....

Our son has been Armed Forces for ten years, and to be fair has saved 50% of his salary for 8 of them after I dragged him kicking and screaming to the Nationwide 7 years ago, resulting in multiple tens of thousands sav ed towards a 50% deposit on his first home when he comes out next year to join Police Scotland. 

What he steadfastly refused to buy into was a personal pension portfolio, which both SWMBO & I did 30 years back...thank God..resulting in a dignified Occupational + State + Personal pension existance not make us wealthy by any stretch, but at last there is a monthly surplus because we are very careful with the pennies so the pounds take care of everything else.

When I pointed out to him the so called Living Wage for burger flippers etc is pretty much double (per hour) the State Pension in net terms...his eyes popped out. Actually, based on an imaginary 37.5 hours per week, the male State works out net at around £4.40 hour..in pretend wage terms. He will not get even that till he is 67...if ever. 

OK..he will have a small Army pension, and hopefully Police pension, but who knows what the cost of living is going to like by then?

I would respectfully urge any Millenials "living for today" who habitually squander on take aways, multiple Starbucks rubbish bla bla to give themselves a bloody good shake and consider their potential "in the gutter" future. There will be nobody to help you come the day. Plenty warnings out there, so only yourselves to thank.  

Said son is home for two weeks R&R next week....and has an appointment with a local (excellent) financial guru. At last.  

 

  

Couldn't put it better myself Rob!  Did the same as you and your good lady, and am in exactly the same position.  If I hadn't..........?  The Workhouse!

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Scottishfiver
#19 Posted : 10 March 2018 10:53:51(UTC)
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Originally Posted by: Countryboy Go to Quoted Post

Originally Posted by: Scottishfiver Go to Quoted Post

Just on the subject.....

Said son is home for two weeks R&R next week....and has an appointment with a local (excellent) financial guru. At last.  

 

  

Couldn't put it better myself Rob!  Did the same as you and your good lady, and am in exactly the same position.  If I hadn't..........?  The Workhouse!

 

It's scary mate. You & I and the likes of us in our 60's plus are the Last of the Baby Boomer Fat Pension / Tax free lump sum + 40-80ths Mohicians. 

I firmly believe, in fact I know, that millions of UK workers are going to Hell on a handcart later in their lives and don't care, or realise, or are getting misled by employers.

BHS? And the rest..... Pension black holes amount to trillions now, and our offsprings are either sleep walkiing into it, or are set to get royally bent over and shafted. Gorra have that £1000.00 Iphone though or the 2-3 year roll over / balloon payment car in the drive to keep the neighbours' blinds twitching in envy. Life style choices...with consequences later on. Each their own.

Just one big issue bubbling up lies with those ostrich lignum vitae headed numpties who lifted their pot in a oner not realising / ignoring only 25% was tax free, and now HMRC are gearing up to recover tax on the remainder many of whom have spent a large portion of it. Twits. Ferrari today, gruel tomorrow.

HMRC will have thousands of them picking oakum in ( financially speaking) poor houses till they croak, or perhaps get themselves involved in one of those leg-lifting equity release ( interest bearing & asset stripping) schemes tp pay HMRC off...if that is all they can offer. Nightmare.

You cannot stop people being people. However, I could care less of some think this is scaremongering. I would counter that by suggesting they Google the facts, find out where they are, and book an appointment ASAP to get themselves on the right path. If just one person is better off for themselves and dependents in 30 years, it's a win for me. 

Edited by user 10 March 2018 11:39:30(UTC)  | Reason: Not specified

Roadie
#20 Posted : 10 March 2018 12:37:05(UTC)
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The simple fact that the OP has asked for advise in good time shows he's going to do things right.

Always so many unknowns though. What will the state pension age be when today's youngsters get there? If there even is one.

Reports suggest there are a large number of people coming to the end of their interest only mortgages without any means to pay them off.

With some people it doesn't matter how much advise is given. You can lead a horse to water...........

We can never predict exactly what the future will bring, we can only making informed guesses and try to cover all eventualities.

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Scottishfiver on 10/03/2018(UTC), Countryboy on 10/03/2018(UTC)
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