Pensions

[Beach Hut]

They are planning to tinker with our pensions at work so if they do and I can stay employed only 30 months left till I'll call it a day.

 

[happypig]

They are planning to tinker with our pensions at work so if they do and I can stay employed only 30 months left till I'll call it a day.

Ours changed from final salary to [something about overall contribution] in 2009 so I have 25 years of one type and about 11 years of the other one. My plan is to retire a bit early in 2020 or 2021 so I am putting AVCs into it as well as they're a no-brainer.

 

[Tom Hark Preston Park]

Let's just say, for instance, a "friend" of mine was 55 years old this year. Say he was also getting bombarded with companies (IFAs) who want to give him advice on what to do next, is this because of the new rules on pensions or are they are trying to cash in on something or is there a very real need to do something?

My IFA told me last year that their company was very reluctant to take on business from new clients relating to the new pension rules because they didn't fancy being sued by the new clients when they ignored the IFA's advice and went out and blew their entire pot earlydoors on a Harley Davison, a round the world cruise and a dodgy 'investment opportunity'. Might be wrong, but would respectfully suggest that the firms your friend is getting bombarded with may not be reputable IFAs. Sounds more like your friend has found his way on to a sucker list. Tread carefully.

 

[Beach Hut]

Ours changed from final salary to [something about overall contribution] in 2009 so I have 25 years of one type and about 11 years of the other one. My plan is to retire a bit early in 2020 or 2021 so I am putting AVCs into it as well as they're a no-brainer.

Not quite so drastic as I am a bit older but very unfair on younger members of our pension fund, the plan is to salary cap it from 01st September so it will continue to increment as it does but any pay award after September will not be reflected in your pension.

I can live with that as pay rises are minimal these days unless you go for a promotion of which I have zero interest, it does however make is very obvious when you call it a day, 35th year this year for me in my pension fund

 

[TSB]

My IFA told me last year that their company was very reluctant to take on business from new clients relating to the new pension rules because they didn't fancy being sued by the new clients when they ignored the IFA's advice and went out and blew their entire pot earlydoors on a Harley Davison, a round the world cruise and a dodgy 'investment opportunity'. Might be wrong, but would respectfully suggest that the firms your friend is getting bombarded with may not be reputable IFAs. Sounds more like your friend has found his way on to a sucker list. Tread carefully.

I completely echo this.
Assuming your "friend" is invested in the lowest of low-risk funds, it probably wouldn't be the worst idea in the world to explore any drawdown opportunities that may present themselves prior to the time of crystalisation.
Main reason being that a fixed interest/cash fund is probably only going to gain you pocket change between now and then and other investment 'vehicles' (property, shares, antiques etc) could be more profitable*
Plus you might quite fancy THPP's Harley, Cruise, Scam suggestion.

Pensions advisory service is the way to go when the time comes. If it still exists by then.

*To any solicitors, rubbing their hands with glee:This is merely an alternative viewpoint and should in no way be mistaken for advice.

 

[Tim Over Whelmed]

Not sure if this may help

https://nortr3nixy.nimpr.uk/showt...ink-you-will-receive&highlight=Pension+advice

Thank you, it's not the state pension more personal plans that I have. It's more why I am being bombarded with people telling me I must take action as I'm (or rather my friend) is approaching 55. I think it's IFAs who want a % of any pot I'm dipping into, which I'm not planning too. Thanks again, Tim

 

[Tim Over Whelmed]

I completely echo this.
Assuming your "friend" is invested in the lowest of low-risk funds, it probably wouldn't be the worst idea in the world to explore any drawdown opportunities that may present themselves prior to the time of crystalisation.
Main reason being that a fixed interest/cash fund is probably only going to gain you pocket change between now and then and other investment 'vehicles' (property, shares, antiques etc) could be more profitable*
Plus you might quite fancy THPP's Harley, Cruise, Scam suggestion.

Pensions advisory service is the way to go when the time comes. If it still exists by then.

*To any solicitors, rubbing their hands with glee:This is merely an alternative viewpoint and should in no way be mistaken for advice.

Good points, thank you. Luckily this isn't the primary fund and has always been looked upon as the travelling, holidaying and wine fund! I do agree, I think there's companies out there who will charge me (my friend) for merely executing the drawdown that we're all entitled to do, I am going to appoint an IFA for a quick overview (any recommendations?) of where I stand and then make some judgements, in the meantime, where's the nearest Harley dealership

 

[TSB]

Good points, thank you. Luckily this isn't the primary fund and has always been looked upon as the travelling, holidaying and wine fund! I do agree, I think there's companies out there who will charge me (my friend) for merely executing the drawdown that we're all entitled to do, I am going to appoint an IFA for a quick overview (any recommendations?) of where I stand and then make some judgements, in the meantime, where's the nearest Harley dealership

Plenty of absolute scum companies out there. Drawdown shouldn't cost you a penny (except, perhaps, tax).

I think there's a couple of advisors on here. Though am not sure whether they deal with pensions.
www.unbiased.co.uk would be a great place to find someone independent and decent.

 

[Seagull58]

Let's just say, for instance, a "friend" of mine was 55 years old this year. Say he was also getting bombarded with companies (IFAs) who want to give him advice on what to do next, is this because of the new rules on pensions or are they are trying to cash in on something or is there a very real need to do something?

I ask because "he" doesn't use an IFA, he, my "friend", knows anyone would be crazy to cash a pension at the moment given the state of the markets and he doesn't want to do anything with pensions for at least 10 years.

It seems like the new scam to fleece ... my friend!

Once you turn 55 you can go into drawdown and take up to 25% in tax-free cash. That's why they're in contact.

 

[LamieRobertson]

I completely echo this.
Assuming your "friend" is invested in the lowest of low-risk funds, it probably wouldn't be the worst idea in the world to explore any drawdown opportunities that may present themselves prior to the time of crystalisation.
Main reason being that a fixed interest/cash fund is probably only going to gain you pocket change between now and then and other investment 'vehicles' (property, shares, antiques etc) could be more profitable*
Plus you might quite fancy THPP's Harley, Cruise, Scam suggestion.

Pensions advisory service is the way to go when the time comes. If it still exists by then.

*To any solicitors, rubbing their hands with glee:This is merely an alternative viewpoint and should in no way be mistaken for advice.

Pensions 'advisory service' cough splutter ....in my experience you could offer better advice

 

[TSB]

Pensions 'advisory service' cough splutter ....in my experience you could offer better advice

Yeah, but it's still value for free...isn't it?

 

[bhanutz]

Plenty of absolute scum companies out there. Drawdown shouldn't cost you a penny (except, perhaps, tax).

I think there's a couple of advisors on here. Though am not sure whether they deal with pensions.
www.unbiased.co.uk would be a great place to find someone independent and decent.

We have increased PI costs to pay for advising on Drawdown, they are still deemed as risky in the view that we could get complaints if they client loses the majority of the value of their fund.

 

[Tim Over Whelmed]

Plenty of absolute scum companies out there. Drawdown shouldn't cost you a penny (except, perhaps, tax).

I think there's a couple of advisors on here. Though am not sure whether they deal with pensions.
www.unbiased.co.uk would be a great place to find someone independent and decent.

Thank you

 

[Beach Hut]

Just completed a major financial health check, in less than two years mortgage free and should put my feet up 6 months after that

 

[Steve Foster]

Let's just say, for instance, a "friend" of mine was 55 years old this year. Say he was also getting bombarded with companies (IFAs) who want to give him advice on what to do next, is this because of the new rules on pensions or are they are trying to cash in on something or is there a very real need to do something?

I ask because "he" doesn't use an IFA, he, my "friend", knows anyone would be crazy to cash a pension at the moment given the state of the markets and he doesn't want to do anything with pensions for at least 10 years.

It seems like the new scam to fleece ... my friend!

As the MD of a Firm of Independent Financial Advisers, we have never been so busy within the pensions arena since the changes were announced last year. For those who have small pension funds there is merit in encashing your pension fund from age 55 years, if you don't want to buy an annuity (pension), need access to your funds & are not reliant on your fund & it is tax efficient for you to do so.

The problems arise, where you have 'safeguard benefits'. In this instance your pension provider will not allow you to go direct & advice is required from an IFA. Whilst this creates additional work for IFAs in truth it is not particularly remunerative & all the onus of advice falls on our shoulders. Such cases include guaranteed annuity rates, occupational pensions for instance.

For those people who have larger pension funds & want the flexibility to take benefits as & when tax efficiently, or to move occupational pensions to a a SIPP, an IFA will add value (managing/advising on the funds), how to draw the funds in the best way. I can honestly say, that with 6 IFAs at our place only one person has encased their whole fund & paid 40% tax & that was a special case (reduced life expectancy).

Need advice? PM me. Or check out vouchedfor.co.uk (this is the only place that the public can rate their IFA - like Trip Advisor).

I am not touting for business but we have helped a number of NSC folk

 

[thedonkeycentrehalf]

As the MD of a Firm of Independent Financial Advisers, we have never been so busy within the pensions arena since the changes were announced last year. For those who have small pension funds there is merit in encashing your pension fund from age 55 years, if you don't want to buy an annuity (pension), need access to your funds & are not reliant on your fund & it is tax efficient for you to do so.

The problems arise, where you have 'safeguard benefits'. In this instance your pension provider will not allow you to go direct & advice is required from an IFA. Whilst this creates additional work for IFAs in truth it is not particularly remunerative & all the onus of advice falls on our shoulders. Such cases include guaranteed annuity rates, occupational pensions for instance.

For those people who have larger pension funds & want the flexibility to take benefits as & when tax efficiently, or to move occupational pensions to a a SIPP, an IFA will add value (managing/advising on the funds), how to draw the funds in the best way. I can honestly say, that with 6 IFAs at our place only one person has encased their whole fund & paid 40% tax & that was a special case (reduced life expectancy).

Need advice? PM me. Or check out vouchedfor.co.uk (this is the only place that the public can rate their IFA - like Trip Advisor).

I am not touting for business but we have helped a number of NSC folk

As a matter of interest, roughly what does it cost for an independent financial review?

Probably like many on here, I have a handful of pensions dotted around from employers, mortgage that is starting to wind down etc. I keep thinking about getting some independent advice but no idea what sort of costs are involved.

I'm sure it depends on circumstances but some ballpark figure would be interesting.

 

[Steve Foster]

As a matter of interest, roughly what does it cost for an independent financial review?

Probably like many on here, I have a handful of pensions dotted around from employers, mortgage that is starting to wind down etc. I keep thinking about getting some independent advice but no idea what sort of costs are involved.

I'm sure it depends on circumstances but some ballpark figure would be interesting.

Most IFAs like us will offer an initial meeting at our expense. This is essentially a Fact Find exercise & to assess your objectives & requirements and work that is needed. In summary we charge from £495 depending on the complexity. Final salary transfers start from £1000. Fees can be paid from your fund (if applicable) or separately. More guidance, charges, advice & levels of service can be viewed www.investment-solutions.co.uk
Less than 50% of IFAs undertake pension transfer advice, due to higher qualifications, extra professional indemnity cover. I would always recommend a Chartered firm.

Hope this helps

 

[Napier's Knee]

Most IFAs like us will offer an initial meeting at our expense. This is essentially a Fact Find exercise & to assess your objectives & requirements and work that is needed. In summary we charge from £495 depending on the complexity. Final salary transfers start from £1000. Fees can be paid from your fund (if applicable) or separately. More guidance, charges, advice & levels of service can be viewed www.investment-solutions.co.uk
Less than 50% of IFAs undertake pension transfer advice, due to higher qualifications, extra professional indemnity cover. I would always recommend a Chartered firm.

Hope this helps

What a small world NSC can be. I had no idea about NSC links but I've recently dealt with Investment Solutions in Worthing for pension advice etc. I can recommend - clear, sensible and everything up front about costs. Impressive and making me money (if I've read the statements right). Now if as a thank you for my praise Investment Solutions want to send me wine, Albion shop gift voucher, it would be churlish of me not to accept.

 

[Steve Foster]

What a small world NSC can be. I had no idea about NSC links but I've recently dealt with Investment Solutions in Worthing for pension advice etc. I can recommend - clear, sensible and everything up front about costs. Impressive and making me money (if I've read the statements right). Now if as a thank you for my praise Investment Solutions want to send me wine, Albion shop gift voucher, it would be churlish of me not to accept.

Delighted to hear that you have experienced a positive & remunerative experience with us - it is a small world!

 

[Tom Hark Preston Park]

On a semi-related topic, would absolutely IMPLORE anyone who has worked for a number of major employers in the past to use this free government pension tracing service to check if you have a pension running that you may have forgotten about or be completely unaware of (if it was a non-contributory pension).

https://www.gov.uk/find-pension-contact-details

I worked for a major publishing company in the early 80's. Moved homes and jobs several times and just forgot it was ever running. turns out it worth several £K a year or a bumper bundle in transfer value.

Nagged an Aussie mate who worked for a couple of years for BT, also in the early 80's to use that link to see if he had a long forgotten pension also. He was pretty gobsmacked and over the moon to discover he had. OK, was a pretty measly annuity, but magically turns into a very decent lump sum of £30K when he's gone through the fairly straightforward process of claiming it.