Any of you wise well heeled folks point me in right direction for some pension advice. Currently got 2 frozen pensions at an ex work place and got one that I'm paying into now. Will be approaching 55 in next 12 months, do I leave them be or take a 25% lump sum out of the 2 frozen ones and put the monthly payment into a separate savings account. Many thanks for any free advice.
I think usually pensions pay better interest than sticking it in a bank but not sure, Best thing to do is get some free advice there’s a govt thing online where you can do this . https://www.pensionwise.gov.uk/en
Depends if you want to give up a guaranteed pension income (annuity) for the opportunity to transfer to a pension that will give you more flexibility ie take lump sums out at intervals etc, that suit yourself, but also know that the money will eventually run out. Bear in mind if the schemes let you take their pensions schemes,the income will be taxed at your marginal rate and this may be a problem if you are still working (in effect you will have 2 sources of earned income).
Some bloke called Dirk Hartog once recommended making a deposit with 'northern angels' however, once in its very difficult to make a withdrawl
Seriously mate. Take advice from a reputable pensions adviser/agency. There are that many different options. Final salary. Annuity. Withdraw the lot.( if your scheme allows it) you should be able to retrieve a quote. At no cost. To put into a private scheme based on market fluctuations. I took The last option as I foresee the benefits being better for my next of kin. ( all remaining funds pass on to my wife and then kids if I should kipper it first. ) The pot is dictated by you. re tax implications and withdrawal amounts. But what suits anyone else may not suit you. Advise from anyone other than stated should not be taken. And in fact if you did wish to withdraw the lot to put in a private scheme. You would be made to take advice by your provider. They would pay due diligence to the qualifications/standing of your adviser. To make sure they are a renowned company so to speak. Generally advice is given free. If not happy with their recommendations with your choice of instructions when you’ve studied the options. Turn em down. Needs serious thought mate.
In general you should leave them until you need them. If you’ve got a specific need or purpose that you need the tax free cash for that would save you having to take out a loan & pay a load of interest or something like that then fair enough but it’s much better left in a pension otherwise. Any pension should really be performing on average at at least 5% a year (although the next year or so might be a bit shaky), even a low risk one so to take it now & just have it sat in a bank or savings account making next to nothing would be a waste of time when it can be making that kind of return over the next decade or so.
