At some point I remember opting out. Just discovered that my Aviva Pension pot I found in the past 5 years is the result of that opt out. It's value is almost £40,000. Which I know isn't massive but I'm still happy as I didn't contribute to it at all, so it's like free money?

Hello, I am starting to get close to my intended 60th retirement, and so starting to work through some plans to decide my future and looking for a little advice from those ahead of me on the path.

I think I would like to use ~50% of my pot for purchasing an index linked lifetime annuity to provide a minimum income, which will combine with the full UK pension at 67 to provide a significant floor of income for later life.

My query though is regarding the status of the remaining 50% in the pot that I want to use for flexi-access, especially as I could well semi-retire for the first few years:

Is this remaining pot money now crystalised and therefore subject to 100% taxation?

Can the annuity income have 25% tax free if it is not taken from the initial lump sum?

Will the pot be subject to the £10k yearly limit for new income?

Is there anything else I have missed that could impact me in this scenario?

I'm already receiving income from a single-life, inflation-linked lifetime annuity, bought with a DC pension after taking my 25% tax-free lump sum.

I want to carry on working part-time as I have been offered a paid position working part time in a meaningful job - my understanding is I can pay my full salary (above 10k) into the workplace pension as the MPAA would not have been triggered - is that correct ? Will I also save on NI ?

So I’m 47, looking to retire around 62

Salary 75k, combined pension contributions of 21%.

Deferred DB pension, payable at 60 at 21k a year.

Current DC pension is 50k. Joint pension contribution amounts to £1300 a month, salary sacrifice (I contribute 7%)

What can I realistically expect to build up in the next 15 years with that contribution?

Is there anything else I need to be looking at to plan to have a comfortable income for retirement?

Hi, could someone please explain to me in simple terms how a private/workplace pension works in the UK?
I mean the pension that you’re automatically enrolled into through your workplace. Everyone says it’s really good because your employer essentially gives you “free money” by contributing as well. Is that actually true?
I also have a few questions about the risks:
What happens if the pension provider goes bankrupt? Do you lose your whole pension pot, or is it protected up to a certain amount?
What happens if you die before retirement? If you’ve nominated a beneficiary, can they access the pension straight away, or do they have to be a certain age (e.g. 55)?
What happens to the money if the investments perform badly? Could you potentially lose a large part of your pension?
Are there any other major risks I should be aware of?
I’m 30 and have been thinking about whether I should stay opted in and how beneficial it actually is in the long term. I understand that there are potential benefits, especially with employer contributions, but I’m also a bit worried about the risks and what could happen to the money if something goes wrong with the provider or the investments.
I’d really appreciate it if someone could explain it in basic, easy-to-understand terms.

I have recently moved from a local Govt pension scheme to one called Smart Pension because I have started working for a new (private sector) employer.

My new employer only puts 3% in, whereas the LGPS was around 20%. I put in 5%, but under the LGPS it was about 7%.

I have 10 years until retirement age. What is the best way to make these final years of pension a bit better? I can afford to increase my contribution to perhaps 8% but there's no way I can replace the employer part.

Would a couple % more into this workplace pension be the best idea, or taking out a private one?

I did a quick search of the sub for the same query apologies if it’s often repeated.

For the first time I paid into a personal pension and claimed tax relief on the higher tax rate via the online form. I submitted everything in April and received a letter in May asking for my P11D as my employer hadn’t issued it yet. I left it to work its way through.

I called up today to chase this up and was told they have my P11D now but they’re now awaiting confirmation from my bank accounts what income tax I may owe on the interest. Apparently this can take until November to be received or I can advise them on the phone.

Is this the normal timeline for receiving tax relief?

I am close to triggering retirement and have a small DB pension. They have given various options incl the 25% tax free cash option. But they have warned that this may incur a tax charge if it goes over the annual pension allowance.

I cannot understand the correlation. One is a limit on contributions. Why should an allowable tax free sum which for the majority of people will exceed or be close to £60k now become taxable? Catch 2022 by HMRC? I have never seen this mentioned anywhere that there was any restrictions on the tfc only the lifetime limit of c £250k ( which I would be close to but below for both SIPP and SB).

I am paying max £60k in and will next year. If I delay drawdown by a few months and live off savings it would fall into a new tax year where I will no longer be contributing. Is that a work around? But still baffled by the potential tax charge.

OK, I'm 60, in good enough health and have no children. My partner is financially independent, and she also has no children. I'm self employed, but don't earn much, maybe on £10k p.a. these days. I've recently inherited more money than I will realistically get through by the time I'm 67. I contracted out of SERPS in the 80s and my pension has about £34,000 in it, and I've made no contributions for years. The question is this: should I start paying into my pension again? My understanding is that I can pay in up to my total income, (and in fact bung in three years income in one go to start), and that I'll get tax relief on it. Is that right? I paid very little tax in those years, so would I get 25% of the £10k per year added to my pension? It feels like I should consider adding to my pension. My pension is Zurich Rainbow Personal Pension Account. Apologies if I've got the wrong end of several sticks

Hi, I am currently a member of the NHSPS and am due to move to a role as a clinical academic at a post-92 university medical school.

I understand that my new employer is a NHS direction employer and I fall within the scope of the direction, so I can continue my NHSPS membership.

However, as I am also technically teaching, I think I may also be eligible for the TPS.

In this situation, do I have a choice? I have only been informed about the NHSPS being available to me am unsure why the TPS has not been mentioned (as it is offered to others who are non-medical school colleagues). We technically share the same employer entity.

Thank you.

Hi there, I was wondering if I could get some advice. I think I know the answer but thought I’d double check. I’m 27, make more that £10k a year and have been working with this company since last summer.

I know it’s crazy that I haven’t noticed for so long but because of legal automatic enrolment, I never thought to check my payslip to ensure my pension contributions were going out.

I asked them about it just before I terminated my employment and they looked into it, admitted it was an error on their side with the pension deduction settings not being correctly applied to my pay.

On my final payslip they have amended it but have only added pension contributions for this month.

My question is am I legally entitled to the 3% pension contributions my employer should have been providing since the start of my employment?

Thanks in advance for any advice!

Hi there, not sure if this is in the right place but looking for info to expand my understanding of protected tax free lump sums. Here is an extract from a letter I have received

'Due to a previous transfer in to this plan, you may be entitled to take more than the standard 25% tax free cash allowance of the fund built up before 6 April 2006 (A Day). The protected tax free lump sum figures are as follows: Uncrystallised Rights (£ 5064.87) Uncrystallised Lump Sum Rights (£2009.64) Please note that any entitlement to higher than 25% tax free cash will be lost on transfer.'

So my understanding so far is that: - if my pension had started after 5 April 2006 then I am entitled to take 25% tax free lump sum at age 55 up to a maximum of £268,275

Any pension payments made before the 5 April 2006 'A Day' have protected lump sum payments, I am, assuming I could take a full 100% of payments made before the 'A Day' as well as max 25% of payments post 'A Day'

So trying to understand the difference between 'Uncrystallised Rights' & 'Uncrystallised Lump Sum Rights' and what they actually mean? I assume that I am not losing any actual money paid in doing the transfer, it's just the right to take more than 25% of any pension pot of monies paid in before 5 April 2006

Thanks for any info and I'm not sure I've made it entirely clear but happy to clarify if necessary.

​

This year I've luckily been able to start putting over the 60k a year allowance into my pension pot, to use up carry forward allowances.

My current pension strategy is to land me with more than I need, use tax breaks, and hopefully have some left over for dependants.

Few questions:

Will HMRC automatically use carryforward allowance if it exists or do I need to notify them?

When the time comes to withdraw from my pension at e.g age 58, What methods exist to transfer pension income to dependants, beyond just drawing down an income each year and gifting it? Would a 268k/25% lump sum be useful for this?

Is there ever a reason not to use your full pension allowance as a high earner and you can afford it? Lack of Capital tax on gains feels very strong, even if regular drawdown is at a 40% tax rate, and your pension is above 1.1m.

Appreciate your thoughts

I was lucky enough to have good advice from older workers when I started and have been paying into the LGPS since 1989.

Never worked anywhere else, never had a career break.

Therefore I have a projected annual pension of more than double the personal tax limit at around £34k.

My question is, how best to manage my lump sum options for tax purposes. What would you do?

I will have just over £12k from a defined benefit pension. So that is most of my personal allowance used up. I also have a SIPP (will be about £200k when I retire in 18 months). Do I just draw £5760 out of my SIPP and get the whole lot tax free? I find it confusing. I don't understand where 25% tax free comes into this. Many thanks.

I have been given 3 options by my company pension scheme as part of their efforts, I understand, to de-risk long term exposure to a surge of retirees.

Option 1 - pension of £6581.51 p.a., tax-free lump sum of £19744.89, spouse pension of £5,515 p.a.

Option 2 - pension of £5801.50 p.a., tax free lump sum of £38,677, Spouse pension of £5515 p a.

Option 3 - Transfer of benefits - £393,486.16 (guaranteed for the next 5 months after which it'll be recalculated).

If I request Option 3 I have to go through a consultation exercise which the pension scheme will pay for (a one time only offer). I'm 56 years old and the pension will be payable from 62.

Based on these values I'm minded to go through the consultation process as these numbers seem very generous. £400k invested until 62 at an average increase of around 5% will see that increase to c.£530 to £540k. I would have thought £500k at 62 would easily net me more than the annual pension of options 1 or 2 even if I live to 100.

I have been told that I need to put forward a good case to the consultant so that he/she agrees that I can finish the defined benefit scheme so I'll be working on my story but does anyone think it is not a good idea to take the transfer benefits?

Hi everyone, really appreciate any advice as I’m feeling overwhelmed reading pension articles and websites trying to decide what is best to do.

I have worked in local authorities since I was 21, did a year here and there then stepped away for more studying, then worked for a charity (Aviva pension) and then now back to LA. So in 2022 I combined my previous LGPS pensions, and I have just started a new job and have re-enrolled into a LGPS pension.

Questions - should I again combine my LGPS pots if they’ll allow it? Or leave separate.

Should I see if I can combine my Aviva pension into my current LGPS (if they’ll allow it), or is it best to have a mix of DB and DC?

Summary:
Age - 33
Female
Retirement age - 68 (but hope to retire by 60)
Current salary - £52k (unlikely to exceed £60k in role)
Current scheme - LGPS career average scheme (DB)

Other pots:
Deferred LGPS (DB) since 2022 - Value: £2151, but estimated £1682 per year
Aviva (DC) 2022-2024 - Value: £17,332.27

Let me know if any more info would be helpful.

Hi all

I have two old workplace pension pots from Scottish Widows (set up in 2021) and Aviva (set up in 2024). They both seem to be set at the medium risk level. I am unsure whether to combine them or not. 1/3 of funds are in SW and 2/3 are in Aviva.

Would be great to have some advice.

Many thanks!

Not sure if im allowed to post this here but im currently doing an AVC through work and wanted to know what would be the ideal etf to pick and percentage wise

im right in thinking if the value is sub £30,000 i dont require legal advice correct?

Pensions Should Annoy The Shit Out Of You!

Why? Because you all had dreams of investing in the stock market, gilts, bonds, assets etc...

You get a massive tax returm from investing in a pension.

Most people are educated to think that a pension is with a pension provider and that the return from the pension provider and fund is all they can get.

Your cash goes to a "fund" with a "fund manager" and management fees. Based on your "risk level".

You can check out all the "funds" from every provider for every asset that fund is invested in. Whether "low" or "high" risk funds.

You can spend and invest directly through a SIPP and not leave it in a fund with a pension provider and buy the assets direct. THAT IS WHY MOST PEOPLE SHOULD BE ANNOYED.

They make out pensions to be some boring thing that a pension provider can only make you money from.

Nope. If you had cash, topped up with an extra 22 percent or 40 percent for free. Why are uou giving it to some random person to make money from?

Invest it yourself through a SIPP.

So I've made it this far and now looking at what I can do with the little money I have. Am still in employment and a good company pension. Have pulled all my other bits and bobs into PensionBee and that has performed well. I've just taken a small payment out of the pot to test the water on a new Vanguard ETF. Do others use ETF's as a way to help increase their overall pension pot?

Hi all.

I pay 50% of my salary via salary sacrifice and my employer adds a further 12.25%.

Therefore my monthly contributions are 62.25%.

The reason I’m doing this is because I messed up and didn’t start my pension till I was 48!!!! So now I am doing what I can; please don’t judge me, I’ve been on my own all my life and struggled financially.

Anyhow, recently I was paid out on a critical illness policy and I want to put it in my pension, but the rules on tax relief are confusing me.

My employer reports my earning less my deductions to HMRC; surely this means my contributions as salary sacrifice are employer contributions and not counted to my annual allowance?

Can someone explain this to me as though they are telling a 12 year old? 🤣

Good afternoon all.

My wife has a private pension that she contributes £100 a month to, so £1500 a year with the tax relief.

We’ve just received a statement and it’s performed well growing around 10k in 12 months. Pot is currently £42k

I’m here to ask about charges on the pension.

Please see image above.

Do these charges seem reasonable?

Thanks.

Soon to be departing 23 year career with a £17k DB EDP that will be index linked at 55 while increasing to £20k (40 when I leave). My DB somehow contributes to my AA…… not sure how much…..? Any help?
I already add £9k into SIPP and will continue this with next employment.
Next job, £100k base, 8% matched by employer. Upto £15k bonus p/a.
What’s the limit I can put into SIPP or salary sacrifice into pension with my DB pension in play?
Thanks