Boycie Posted July 10, 2018 Share Posted July 10, 2018 I’ve have a main private pension which I pay into monthly since 1991. I also have an individual personal pension from when I was on the books with a minimal amount in as I don’t pay into it anymore. Now, the small pension provider says there’s no penalty on transfer. Am I best to combine it into the older one or leave it until I’m 55 and draw it out, or some of it etc? Link to comment Share on other sites More sharing options...
Stive Pesley Posted July 10, 2018 Share Posted July 10, 2018 Lots of variables* Depends on how minimal we're talking - if it's more than a few grand then definitely get a quote to transfer it. If your private pension allows you to transfer it in that is. If it's smaller then it may not be worth the hassle. The way things are going in the world, I'd be tempted to cash it in and go on a massive holiday! * also how many years till you plan to retire what sort of growth does it have currently is the pension scheme fully funded etc Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted July 10, 2018 Share Posted July 10, 2018 Should get a quote on your small pension to check what the effect of the charges are if you stay put. lots of older personal pensions have things like flat fees eg £3 per month which can look v pricey if the pot isn’t large as they add up to a large %. Interestingly, the financial services regulator is just undertaking a big review of customer behaviour in this market segment as they reckon you’ve been paying higher prices for years and not moving into more modern lower cost products. on balance it’s prob better to transfer but that’s a hefty paper exercise and the service standard is typically 4-6 weeks. Link to comment Share on other sites More sharing options...
Parsnip Posted July 10, 2018 Share Posted July 10, 2018 I'm 39 and have literally no idea what a pension even is! Am i missing out on something? Am i going to die on the streets at 65? Link to comment Share on other sites More sharing options...
Angry Ram Posted July 10, 2018 Share Posted July 10, 2018 1 hour ago, Boycie said: I’ve have a main private pension which I pay into monthly since 1991. I also have an individual personal pension from when I was on the books with a minimal amount in as I don’t pay into it anymore. Now, the small pension provider says there’s no penalty on transfer. Am I best to combine it into the older one or leave it until I’m 55 and draw it out, or some of it etc? Difficult to answer as Stive says but I have consolidated all but 2 of mine into one. The only two that I did not have good benefits attached to them, so best left alone. If you pay 40% tax, stick as much as you can into them but make sure you claim the other 20% from HMRC via your self assessment. Nowhere else are you going to get 40% or 20% return on your investment. I am with Standard Life Elevate now and it's doing okay. I am not too bold with where they invest the money, so I don't get the big returns. More steady eddie on this front. As with all financial things, personal situations will vary and better to take proper advice. Best thing i ever did, saved me thousands.. Link to comment Share on other sites More sharing options...
1of4 Posted July 10, 2018 Share Posted July 10, 2018 1 hour ago, Boycie said: I’ve have a main private pension which I pay into monthly since 1991. I also have an individual personal pension from when I was on the books with a minimal amount in as I don’t pay into it anymore. Now, the small pension provider says there’s no penalty on transfer. Am I best to combine it into the older one or leave it until I’m 55 and draw it out, or some of it etc? If you're happy with the projected pension you will receive on retirement from your main pension provider and if by adding the other smaller one to it doesn't increase significantly your final pension. I personally would look into the possibility of drawing it out as cash lump sum, you would more than likely have to pay tax on it, and spend it on something decadent. Link to comment Share on other sites More sharing options...
Rev Posted July 10, 2018 Share Posted July 10, 2018 12 minutes ago, Parsnip said: I'm 39 and have literally no idea what a pension even is! Am i missing out on something? Am i going to die on the streets at 65? Similar boat, never had one until last year when forced to take one out. I've always thought as long as I had a few quid tucked away at retirement age, I could spend it on a Vegas trip, where I'd die in an orgy of cocaine and hookers. Link to comment Share on other sites More sharing options...
froggg Posted July 10, 2018 Share Posted July 10, 2018 3 hours ago, Boycie said: I’ve have a main private pension which I pay into monthly since 1991. I also have an individual personal pension from when I was on the books with a minimal amount in as I don’t pay into it anymore. Now, the small pension provider says there’s no penalty on transfer. Am I best to combine it into the older one or leave it until I’m 55 and draw it out, or some of it etc? Save like crazy and each time you can afford a deposit on a property buy it, get some decent tenants and let them pay your mortgage, the rental income will be your pension top up. Just get me a beer next time I’m up.? Link to comment Share on other sites More sharing options...
Rev Posted July 10, 2018 Share Posted July 10, 2018 1 minute ago, froggg said: Save like crazy and each time you can afford a deposit on a property buy it, get some decent tenants and let them pay your mortgage, the rental income will be your pension top up. Just get me a beer next time I’m up.? Is it that easy now @froggg? It's something I've been looking at recently, but the stamp duty applied now, and the fact you can't write the whole mortgage off against rental is an obstacle that wasn't there a few years ago. It seems a hard way to earn little return currently, but then again there isn't much in the way of alternatives either. Link to comment Share on other sites More sharing options...
Wolfie20 Posted July 10, 2018 Share Posted July 10, 2018 2 hours ago, Parsnip said: I'm 39 and have literally no idea what a pension even is! Am i missing out on something? Am i going to die on the streets at 65? No - you'll be 67 Link to comment Share on other sites More sharing options...
froggg Posted July 10, 2018 Share Posted July 10, 2018 1 minute ago, reveldevil said: Is it that easy now @froggg? It's something I've been looking at recently, but the stamp duty applied now, and the fact you can't write the whole mortgage off against rental is an obstacle that wasn't there a few years ago. It seems a hard way to earn little return currently, but then again there isn't much in the way of alternatives either. It’s all about when the mortgage is paid off, what else can you do get 0.5-1.00%, I was lucky working in the NHS since age 16, crap pay but superb index linked pension now I’m retired. Link to comment Share on other sites More sharing options...
Rev Posted July 10, 2018 Share Posted July 10, 2018 7 minutes ago, froggg said: It’s all about when the mortgage is paid off, what else can you do get 0.5-1.00%, I was lucky working in the NHS since age 16, crap pay but superb index linked pension now I’m retired. Did you do the landlording yourself, or use a letting agency? Any advice well appreciated. Link to comment Share on other sites More sharing options...
froggg Posted July 10, 2018 Share Posted July 10, 2018 It depends how much time you have, this is a useful guide. https://www.simplybusiness.co.uk/knowledge/articles/2017/01/letting-agent-fees-for-landlords-a-quick-start-guide/ Link to comment Share on other sites More sharing options...
i-Ram Posted July 10, 2018 Share Posted July 10, 2018 4 hours ago, Boycie said: I’ve have a main private pension which I pay into monthly since 1991. I also have an individual personal pension from when I was on the books with a minimal amount in as I don’t pay into it anymore. Now, the small pension provider says there’s no penalty on transfer. Am I best to combine it into the older one or leave it until I’m 55 and draw it out, or some of it etc? What, you aren’t 55 yet? Are you Nigerian? Link to comment Share on other sites More sharing options...
Parsnip Posted July 10, 2018 Share Posted July 10, 2018 1 hour ago, Wolfie20 said: No - you'll be 67 I'll be lucky to get that far - I'm going on a fun little holiday with @reveldevil at 65. Link to comment Share on other sites More sharing options...
mozza Posted July 10, 2018 Share Posted July 10, 2018 1 hour ago, reveldevil said: Did you do the landlording yourself, or use a letting agency? Any advice well appreciated. If you are fortunate enough to be able to let out a second home, i would strongly recommend you use a letting agency. Full management usually costs 10percent of any rent you receive, for this the agency will collect your rent for you, sort out gas safety checks, and any refurb that need doing ( obviously at a cost). The biggest plus with full management is the agent will vet tenants and be responsible for any cOckups they make regarding bad tenants. You can also use agencies for rent collection only, for which they'll charge 5percent of rental income. we've never had the courage to not use an agency, but know a few who 'risk it' Link to comment Share on other sites More sharing options...
Rev Posted July 10, 2018 Share Posted July 10, 2018 32 minutes ago, Parsnip said: I'll be lucky to get that far - I'm going on a fun little holiday with @reveldevil at 65. It's probably not the best idea to go all in on the 1st visit mind, probably a good idea to have a couple of visits first, just to suss things out. Pension planning visits seem prudent. Link to comment Share on other sites More sharing options...
Boycie Posted July 10, 2018 Author Share Posted July 10, 2018 4 hours ago, StivePesley said: Lots of variables* Depends on how minimal we're talking - if it's more than a few grand then definitely get a quote to transfer it. If your private pension allows you to transfer it in that is. If it's smaller then it may not be worth the hassle. The way things are going in the world, I'd be tempted to cash it in and go on a massive holiday! * also how many years till you plan to retire what sort of growth does it have currently is the pension scheme fully funded etc I’m 47, no plans to retire any time soon, the small pension is only worth 3k, no penalty to transfer they told me, made £90 last year. Half invested in European stuff and the other half pacific stuff, with avviva. 2 hours ago, froggg said: Save like crazy and each time you can afford a deposit on a property buy it, get some decent tenants and let them pay your mortgage, the rental income will be your pension top up. Just get me a beer next time I’m up.? Save? What’s that?? Plus I’m classed as self employed even though I’m employed by my own Limited Company, so on paper I can’t even afford to pay the mortgage I have on my current house (according to their calculations) Its didn’t stop them thrusting money at me pre 2008 mind. My accountant came round tonight and he said probably leave it there as if you transfer it and draw a lump out at 55 you’ll still pay the tax on it either way. But do you ever trust an accountant ? Link to comment Share on other sites More sharing options...
Angry Ram Posted July 10, 2018 Share Posted July 10, 2018 4 hours ago, froggg said: Save like crazy and each time you can afford a deposit on a property buy it, get some decent tenants and let them pay your mortgage, the rental income will be your pension top up. Just get me a beer next time I’m up.? Thought that was all one sided now and you get cained on tax etc. We looked at this but were advised to put a large lump some into pensions. Not by one advisor but 4. Also a family friend. Where else are you going to get 40% on an investment. We still keep toying with the idea though. Link to comment Share on other sites More sharing options...
Stive Pesley Posted July 11, 2018 Share Posted July 11, 2018 13 hours ago, froggg said: Save like crazy and each time you can afford a deposit on a property buy it, get some decent tenants and let them pay your mortgage, the rental income will be your pension top up. Just get me a beer next time I’m up.? That's easier said than done. My in-laws are both self-employed and have no pensions, so bought a property to rent. They regret it as it's been a never-ending shambles. Started off with private tenants, who turned out to be awful and didn't pay the rent - then eventually disappeared, leaving the house a bomb-site. They then paid a fortune to get it all properly tarted up and went with a letting agency to try and take some of the stress out of it. The letting agency then condemned the boiler and made them replace it. Got a new tenant who said she wanted to live there long term. The mythical "decent tenant" they thought. 4 months later she moved out unnanounced and they discovered that she had taken the fridge, oven and washing machine with her and replaced them with (much) cheaper versions?! Next up was a respectable family with young kids. They had to be better right? The 6 month inspection ended with them being evicted. The kids had trashed everywhere, broken doors, marker pens all over the walls, burns all over the wooden worktops fron hot pans -carnage. Cost them more than the deposit they kept to fix it all up (again). After that they had some "young professionals" - who seemed OK for the first 6 months, but after that they seemed to descend into regular parties and mayhem. Neighbours complained, all got really stressful and they ended up kicking them out too Now they have new tenants who seem OK so far, but have just discovered knotweed in the garden, which is spreading from next door.... Ironically it was supposed to be there pension, but I suspect it will be the death of them Proceed with caution - if you don't think you can handle the stress of any of the above, don't do it Link to comment Share on other sites More sharing options...
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