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Transfering a pension pot


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I'm one of those lucky individuals with a works pension.  Not a huge one, but still something.

Pension freedoms mean I can now transfer it to another provider and do a  draw down pension rather than buy a dual life annuity with the company. However,  if I end up in social care can they make my missus get the money out and pay towards the care until it's gets down to the threashold.   I think they can't  do this to a dual life annuity.

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May also depend on the type of works pension you have. If it is a scheme linked to your final salary then you need to check all the benefits e.g. widow pension percentage, annual increases etc as it could be best to leave it where it is.

Social care is also not straightforward. If you had to go into a care home then more of your assets can be used e.g. your house if only you live there (if there is a spouse then it is not taken into consideration unless you both end up in one). With home care your house if not taken into account as part of your `savings'. 

https://www.pensionwise.gov.uk/en/care-costs

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38 minutes ago, sparky the cat said:

Ricky

 

 

Thanks for the link.  If I'm reading it correctly leaving in a a draw down will attract a psuedo-pension income.  So all other things being equal, it just the same as having the company pension coming in.

 

George

George - if you have any pension type questions and no formal advisor then this site has folks who contribute to answering questions. https://forums.moneysavingexpert.com/forumdisplay.php?f=19 you have to register before you can access the pensions forum but you might get some additional advice. @Turpinr brought it to my attention.

Edited by wrenny1969
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https://www.which.co.uk/news/2019/09/annuity-rates-plummet-is-a-guaranteed-pension-income-still-worth-it/

 

Apparently annuity rates have taken a tumble which may be good news if you've got a final salary pension and thinking of transferring.

It doesn't look like annuities are worth a carrot these days to buy.

An escalating joint annuity for 100k would be lucky to make 3k/year 

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17 minutes ago, Turpinr said:

https://www.which.co.uk/news/2019/09/annuity-rates-plummet-is-a-guaranteed-pension-income-still-worth-it/

 

Apparently annuity rates have taken a tumble which may be good news if you've got a final salary pension and thinking of transferring.

It doesn't look like annuities are worth a carrot these days to buy.

An escalating joint annuity for 100k would be lucky to make 3k/year 

It's a company pension, so luckely don't need to worry about the rates.  Think should I move and draw down.  It's all about what stomach i have for the risk. Having seen news about US growth struggling, the borrowing debt and of course good old brevity who knows where we will end up.

 

 

 

 

Wrenny,   thanks for the link, I'll have a look.

 

 

18 hours ago, wrenny1969 said:

George - if you have any pension type questions and no formal advisor then this site has folks who contribute to answering questions. https://forums.moneysavingexpert.com/forumdisplay.php?f=19 you have to register before you can access the pensions forum but you might get some additional advice. @Turpinr brought it to my attention.

 

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20 minutes ago, sparky the cat said:

It's a company pension, so luckely don't need to worry about the rates.  Think should I move and draw down.  It's all about what stomach i have for the risk. Having seen news about US growth struggling, the borrowing debt and of course good old brevity who knows where we will end up.

Wrenny,   thanks for the link, I'll have a look.

 

 

 

I transferred into a SIPP from a watered down DB scheme. Most companies closed and/ or watered down DB schemes, in my case my trustees changed their rules to break with the two thirds of final salary commitment, that's when I transferred out.

If you do think about transferring out ask for an estimate of the transfer value from your pension trustees to give you an idea of what you might get, it should be free but due to the complexity to work it out there might be a limit to how often to can repeat the request for an estimate.

You will pay fees to an independent financial advisor I paid about 1% of the transferred value plus about £1250 for a years ongoing support from the IFA. This included the transfer itself into funds matching my risk appetite. Be careful who you engage with and always check with the Financial conduct authority as to whether the person is authorised to act on pension transfers.

Over the last 2 years I had a return on investment within the SIPP of around 5.5% per annum after fund charges. You will pay for a SIPP itself which is the wrapper your pension sits in. Mine is about £695 per year. IFA charges me £1250 a year. 

People do do it but it's not the right thing to do in every case :thumbsup:

I should have said I'm 50 so can't take out any wonga for another 5 years yet.

Edited by wrenny1969
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