Soldato
A nice bonus would be right. Doubt it will even exist for folk who have responsibly planned for their dotage!
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
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Soldato
- Joined
- 7 Jan 2009
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- 6,428
I currently have a pension handled by a third party from a job i use to work in and was made redundant, No payments are now going to them.
I now have a new job and the pension is handled by a third party again but not the same one as my previous employer had to handled pensions, Should i transfer it to my new pension pot or would you guys recommend i set up a completely new private pension and transfer both pots into one?
I'm a bit stuck atm as i don't intend to stay in the job I'm currently working at so id imagine withing the next 6-12 months my pension handler will change again lol!
I now have a new job and the pension is handled by a third party again but not the same one as my previous employer had to handled pensions, Should i transfer it to my new pension pot or would you guys recommend i set up a completely new private pension and transfer both pots into one?
I'm a bit stuck atm as i don't intend to stay in the job I'm currently working at so id imagine withing the next 6-12 months my pension handler will change again lol!
Associate
- Joined
- 23 Aug 2010
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- 237
Personally, I have a private SIPP that my FA manages for me. Whenever I change jobs, I roll the pension pot from the job into the SIPP and then have the new pension from the new job ongoing.
So I only ever have one big pension pot, and then the current job pension pot. Rinse and repeat and it keeps it simple for me (in theory)
So I only ever have one big pension pot, and then the current job pension pot. Rinse and repeat and it keeps it simple for me (in theory)
Move it to a private SIPP.
Soldato
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Soldato
As long as it's got no major benefits then yes, if it's got something special about then consider this move.
Normal contribution pension? yeah merge into your own SIPP.
Man of Honour
don'tspend it all at once
Well because I'm still working and take other pensions I don't really need it so it's all extra money
Soldato
You can defer your state pension don't forget, its increased in value if you defer it.
Soldato
Yeah there is only one type, self invested personal pension.
you can but it's very rare for anyone these days to do that.... Take it and enjoy it!!
Also can't defer if you're on a number of benefits.
Soldato
If defer your state pension for a year, you have to live at least 20 years to make the money back from referring it.
It’s roughly 5.8% per year increase… you might as well take the money and stick it in a high interest account or in a market tracker.
As far as I’m aware, you can still take the state pension be in full time work and pay towards a private pension without any penalties. If they changed the rules on that and stopped people from paying into private pensions, then more people would consider deferring their state pensions.
Soldato
Need to consider tax as well, if paying 40% your losing 40% now, but unlikely to be when fully retired.
Has been somewhat nerfed but should always be considered. Only SexyGreyFox knows his tax position.
Has been somewhat nerfed but should always be considered. Only SexyGreyFox knows his tax position.
Retire as soon as possible and don’t take anything for granted!
Soldato
Even if you’re in the 40% tax bracket now, the additional amount given later means that if you were to take out the same amount from your private pension, you will be taxed at 20% or 40% on the additional amount from your private pension pot.
Your best bet is to take the state pension and put in the same amount given by the state pension into a private pension if you don’t want to pay tax on it now.
Edit: YouTube link with someone else who’s done the maths… https://youtu.be/UxecUeip5Ak?si=CGE98amXU02tl86C
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Take the state pension, put it into your private pension and get 20% (or even maybe 40%) tax relief on top? That must massively out weigh deferral if you don't need the money.
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Don't forget if you have enough income / savings elsewhere to consider deferring state pension, your likely to pay tax on the state pension on the way out, and then get it back if you recycle into personal pension so effectively it's tax neutral.
The reality says 98% of people at state pension age, want to take state pension and enjoy it/need to take it/have health issues and should take it etc.
I've only had 2 people I've known over 20+ years in financial servces be in a position to defer state pension/wish to defer state pension.
Take it and enjoy it. Don't put it off "to save a few quid".....
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If you've got other income so that your state pension is taxed, but you don't need the money, then if you save it in a standard savings account you'll not have recovered any of that tax, whereas putting it back into your pension fund will enable you to recover all of the tax. So against saving it directly, it would be very beneficial to reinvest in your personal pension fund instead.
Yeah I can now see it wouldn't be beneficial against deferral under that scenario though. I think it would be beneficial against deferral if you had no income and living off cash savings.
Interesting choices anyway, likely won't affect me as I'll need the money when I'm that age anyway.
Dont forget you also need relevant earnings to pay into a pension over the £2880/£3600 limit so it will be down to individual circumstances.