Roeder-nowhere 10:32 Sat Feb 25
Pension payments
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Been living abroad and have mosses ywara of NI contributions and wondering if it’s worth paying in to make up lost years?
Looking more and more like I won’t return to the UK certainly to make up the quota for a full pension and getting through to the future pensions advice line is impossible as there’s a deadline for payments coming up.
People have told me it’s not worth it, as any lost years I’ll just get pension top ups anyway. And who knows what will change and what the retirement age will be when my time comes. Most likely 71-73 and then what, enjoy 2 years of retirement and I snuff it.
What do ya reckon. I’m leaning towards just paying what I can.
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Replies - Newest Posts First ( Show In Chronological Order)
Far Cough
2:55 Thu Mar 2
Re: Pension payments
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I dunno, Antonio probably should be pensioned off?
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zico
10:22 Wed Mar 1
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Oops wrong thread.
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zico
10:19 Wed Mar 1
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Typical Antonio, better when he doesn't have to think about it!
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Westham67
9:46 Wed Mar 1
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I have not checked but 4 years ago before I came back I was on 18 years and that was £170 something a week
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Northern Sold
7:52 Wed Mar 1
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Heath Hammer 5:39 Wed Mar 1
Ahhh got ya...fuck me what a pain then... got to admit not got a clue of the rules with a DB pension scheme... sounds pretty restricted??
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zico
7:35 Wed Mar 1
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New Jersey 7:30 Wed Mar 1
Yes mate did see that thanks,. Had a quick browse today but none of the buggers show their fees on a website so it's a case of email or call. Like you say though COYI an away win at OT is overdue!
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zico
7:32 Wed Mar 1
Re: Pension payments
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SecondOpinion 7:22 Wed Mar 1
Tell me about it. You can't even take 25k this year and 25k next year. Only real option is to take 10 grand tax free and a paltry 1500 a year in a reduced pension. It's hardly a pension, just a figure I haven't been able to touch since a 6 year job in my 20's! To match the pension value to the CEV I have to live till 94! I can understand advice being required if it's a pension you could live on that's valued at over 100,000 or something but whether your CEV is 30,000, 01p or 6 million you pay exactly the same for financial advice! Disgusting is correct.
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New Jersey
7:30 Wed Mar 1
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Zico - Mrs NJ paid £700 plus to the FA for a pot about £33k. It may be worth shopping about but we didn't bother. It was calculated on a percentage of what the pot was worth, can't remember what it was. The Mrs did exactly what you want to do.
Anyway enough of the financial malarkey l'm just in the Trafford centre car park waiting for my son to get tram into the game, Irons!!
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SecondOpinion
7:22 Wed Mar 1
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That's disgusting.
You might have to take a hit.
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zico
7:14 Wed Mar 1
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Heath Hammer 6:38 Wed Mar 1
Many thanks.
Second Opinion. That's the problem. My CEV with The Wesleyan is just about 50k, but because it's over 30k they won't release me that full amount unless I get financial advice and the advisor has to complete a section of the withdrawal form. If it was £300 then I would do it but I've been told these FA's will charge several thousand just to tick the boxes to receive the 50k
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SecondOpinion
7:09 Wed Mar 1
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zico 6:25 Wed Mar 1
Re: Pension payments
You won't need a financial advisor if you KNOW what you want to do with your money. (I knew what I wanted to do with my cash in)
I am assuming you want to pay off debts you cannot manage? If so, good move.
You could always re-invest some money in Premium Bonds as previously mentioned and see how they work for a year?
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Heath Hammer
6:38 Wed Mar 1
Re: Pension payments
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i'll ask around to see if i can find any platforms which will allow you to transfer in without advice.
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zico
6:25 Wed Mar 1
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What confuses me is that I suspect no Financial Advisor is going to professionally advise you to cash in a pension even one that just pays peanuts, but by just giving advice to you they potentially leave themselves open to a possible claim for bad advice further down the road. It's no skin off a pension companies nose to just get you to sign a disclaimer stating it is your decision and yours only if you want to cash in the whole pot and on your head be it in the future. All I want is to just withdraw the 50 grand, get 25% tax free, pay tax on the remaining 75% that leaves me with a decent £42 odd grand to pay off debts and to leave the heating on a little longer! What pisses me off is that it's over 30k I need to pay several grand to an advisor who I'm going to ignore anyway!
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Heath Hammer
5:39 Wed Mar 1
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Sold
i think this issue is that with anything that is G'teed (GAR or DB scheme) - to move out of that scheme into a drawdown requires advise.
As i understand it, very few advisors will ever advise you to forgoe the gtee - so you then have to find someone who will accept the transfer in, against the advice.
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zico
4:20 Wed Mar 1
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Will look into it Sold, never heard of it. Cheers.
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Northern Sold
3:42 Wed Mar 1
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Zico… have you thought about moving your pensions into a drawdown?? That’s what we’ve done… you can then do what you want when you want… and without financial advice (we was offered but said no)… ours was done all over the phone with Aviva… took 30 mins tops.
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zico
3:33 Wed Mar 1
Re: Pension payments
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Cheers Gents. It is annoying Jersey as that was what I thought, you know what you want to do, so why pay thousands for someone to advise you when you have already decided! Mines obviously pre 2006 and yes I think I have kept most of my old P60's. On my options under an option 3 it says - "You can choose to take a lump sum lower than the maximum shown in option 2 (the one I am edging towards) . You exchange pension for cash, so the less cash you take the higher your reduced pension will be. This option allows you to decide exactly how much cash you want to take. You CANNOT take a lump sum over the amount shown under option 2"
Sorry for two stupid questions but -
– Is there a legal reason why you can’t take a higher lump sum and an even more reduced pension? Even if a higher lump sum is is taxable?
Also are there no options in pensions to take the CEV in two stages? Eg in my case £25,000 in June and £25,000 in say two years’ time? That would avoid the need for the Financial Advice or are they all in it together to get their pound of flesh?
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New Jersey
2:07 Wed Mar 1
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Zico - My Mrs had that problem when her private Aviva pension matured, because it had a Guaranteed Annuity Rate (GAR) and was over £30k she was legally required to get financial advice. It was so fucking annoying because she had made up her mind she was going to take the lump sum. Tbf the Annuity rate was good but not life changing. She paid a percentage of the value of the matured fund and it cost her just over £700!!
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Northern Sold
1:07 Wed Mar 1
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Zico... me and Mrs Soldo been sorting out her old company pensions... she had 2 with her old Lloyds of London Insurance job... one for £100k and the other for £50k... the smaller one as it was pre 2006 she got the choice of having LTA giving her a bigger tax free lump sum (38% instead of 25%)... be worth looking into if your pension is pre 2006... helps if you keep all your old P60's like my missus had. We are transferring the pension into a drawdown, when applying they (Aviva) did ask and suggest we might want to look at Financial advice ... but as the missus is working PT for a bank and has a nice pension already with them we said no we didn't want it (as long as she keeps the annual drawing of the pension amounts under her allotted 50k tax threshold then should not be a problem).
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zico
12:41 Wed Mar 1
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I forgot to add with the option of the smaller pension and lump sum, of you don't need advice for I would have to live to around 95 to receive the CEV amount in pension form. No way am I going to reach 95!! Ridiculous.
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zico
12:38 Wed Mar 1
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Bollocks pressed wrong button!!
As his is a pension thread thought I would share this that has frustrated me somewhat. I have got a private pension and two old work pensions. I could do with a little cash now and approaching 55 can look into taking one of them in June if I wish. Worked in Insurance for 6 years back in the late 90's before computers and Direct Debits made me redundant. Contacted the pension team and the best option was to take a small pension of around 1500 a year (peanuts) and a lump sum of just over 10 grand, which I believe is tax free.
I asked them about their cash equivalent value option and was quoted around £50 grand. Around seven and a half grand would be in tax but I could live with that but what I didn't know is any CEV over £30,000 you have to pay for financial advice before they transfer it. The name etc of the advisor has to go on the forms. Not 100% sure if they pay out even if you ignore that financial advice, but if they do and your mind is made up you still have to pay thousands of pounds for a financial review just to access your own money. I know it's there to "safeguard" people, but if you want to do it and haven't got advice then that surely should be down to you at the end of the day. Just a money making scheme for FA's!
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