Jump to content
House Price Crash Forum

Archived

This topic is now archived and is closed to further replies.

6538

Pension - What Can You Do With It?

Recommended Posts

Ok, so I have a couple of pensions that I haven't paid into for over 10 years. Not massive, they're about £16K in value between them.

I'm not likely to be paying into them again and what they'll pay me in 20 years will be a pittance.

Is there anything you can do with them (other than transfer the balances to other funds) or do they just have to sit there and fester for the next couple of decades?

Share this post


Link to post
Share on other sites

Ok, so I have a couple of pensions that I haven't paid into for over 10 years. Not massive, they're about £16K in value between them.

I'm not likely to be paying into them again and what they'll pay me in 20 years will be a pittance.

Is there anything you can do with them (other than transfer the balances to other funds) or do they just have to sit there and fester for the next couple of decades?

Can't actually help, but I'm interested to know the answers.

One of my two pensions is in a fund which is being closed (company take-over), As it's under 18K one of my possible options is to take it as a lump sum. 25% is tax free, and the remaining 75% is liable to income tax, which I don't currently pay. I presume I'd get my personal allowance taken in to consideration. As my other pension is with the new company's scheme I may be able to transfer it over with little or no fees, but they haven't given me my full options yet.

It's performed so poorly that TBH I'm tempted to take the income tax hit, and stuff it into a bond, rather than another pension. At least there it can't go down in value, like it has so many times in the past. I suspect I'm likely to lose more than the equivalent of the income tax if I don't.

Share this post


Link to post
Share on other sites

Get onto the pension scheme advisors for each scheme. They can tell you your options. 'Trivial Commutation' of small pension pots regulations changed last April 1st. Get proper advice.

Share this post


Link to post
Share on other sites

You can transfer pensions but it's easier to just leave them where they are, a diversification strategy if you will in case another Robert Maxwell appears, for example.

You usually can't withdraw them until you're 55 though. You'll take a massive hit for doing so too.

Now if you're from abroad and you return home, you can get your pension when you leave! Polish friend of mine did this. I forget whether that was state or private pension. Shame they don't let you do it if you emigrate.

Share this post


Link to post
Share on other sites

You can transfer pensions but it's easier to just leave them where they are, a diversification strategy if you will in case another Robert Maxwell appears, for example.

You usually can't withdraw them until you're 55 though. You'll take a massive hit for doing so too.

Now if you're from abroad and you return home, you can get your pension when you leave! Polish friend of mine did this. I forget whether that was state or private pension. Shame they don't let you do it if you emigrate.

That was my original intention. They are shutting the whole fund, so I have to decide what to do.

Share this post


Link to post
Share on other sites

That was my original intention. They are shutting the whole fund, so I have to decide what to do.

You can transfer it to a low-cost SIPP, where you're in charge of it yourself and it's not in a pool where it could fall victim to an Equitable Life scenario or PTB raid.

Share this post


Link to post
Share on other sites

You can transfer it to a low-cost SIPP, where you're in charge of it yourself and it's not in a pool where it could fall victim to an Equitable Life scenario or PTB raid.

Thanks, will look into it.

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.