Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: TheBoy on 21 May 2016, 09:53:17
-
Reading the sad story of another thread has made me wonder about mine...
Having a number of private pensions through various employers, I don't know what I'm entitled to from state, if I make it that far...
I believe a some points I've been opted out. How do I find out, and is it worth me trying to buy years? How?
Speak like I'm an idiot :y
-
.gov Links in other thread might help :y
Recall a section where you can access your data to find out where you're at...
-
.gov Links in other thread might help :y
Recall a section where you can access your data to find out where you're at...
I shall have a gander. I need to create an ID apparently, so need to get out of bath :(
-
Firstly you need to find out what private scheme's you are in first and the fund values, and are you still paying in, and can you amalgamated them all together, called transfer. :-X
-
http://www.ageuk.org.uk/money-matters/pensions/tracing-old-pensions/
https://www.gov.uk/find-pension-contact-details
Sites which may be helpful. :y
-
Firstly you need to find out what private scheme's you are in first and the fund values, and are you still paying in, and can you amalgamated them all together, called transfer. :-X
One is a frozen DB one, probably best kept as-is.
Other 2 are DC, and at the time was worth keeping separate.
I've only ever paid into 1 at any point in time, as all 3 are employer schemes.
Gov site goes through all the motions, then at the end says that I have to call them. Gee, good ol' civil service. Cynics might say its a ploy to gain all my contact details ::).
-
This is encouraging . . . .
http://www.thisismoney.co.uk/news/article-3598032/Bank-England-s-chief-economist-admits-t-make-remotest-sense-pensions-says-experts-advisors-no-clue-either.html
-
Or you could do what seems a blinding idea..
Wait untill 55, then keep drawing down till it's all gone, then rely on the state when all your monies are gone, then go on all the pensioners' rallies in London moaning about how hard up you are, whilst smoking, and taking photos with the latest phone, on a £7k fat bike. Yup seems that'll be me ;D
-
Or you could do what seems a blinding idea..
Wait untill 55, then keep drawing down till it's all gone, then rely on the state when all your monies are gone, then go on all the pensioners' rallies in London moaning about how hard up you are, whilst smoking, and taking photos with the latest phone, on a £7k fat bike. Yup seems that'll be me ;D
Only one identity and pension, obviously English and honest. ::) ::) ::) ::)
-
I believe a some points I've been opted out. How do I find out, and is it worth me trying to buy years? How?
Speak like I'm an idiot :y
Iirc opting out of the Second State Pension (I think that's the only thing you could have opted out of) doesn't matter anymore. The government scrapped the 2 tier pension system so that everyone gets the same.
Also state pension isn't means tested (yet) so currently it doesn't matter how much other pension income you have, you still get the full whack. Here's a webpage that gives some details:
https://www.gov.uk/additional-state-pension/overview (https://www.gov.uk/additional-state-pension/overview)
On the subject of separate pensions, it may be worth looking at the management fees, especially if the pots aren't that big, the fee can wipe out any investment growth. I've just started to pull mine into 1 pot for this reason.
You're right about the DB one though, don't touch it, they're like gold dust! :y
-
Reading the sad story of another thread has made me wonder about mine...
Having a number of private pensions through various employers, I don't know what I'm entitled to from state, if I make it that far...
I believe a some points I've been opted out. How do I find out, and is it worth me trying to buy years? How?
Speak like I'm an idiot :y
How old are you, and when do you reach state pension age?
As I tried to explain in the other thread, if you have been ever been opted out in the past, then it is very unlikely that you'll currently qualify for the full new basic SP of £155 - Deductions are applied for the years you have been opted out. These deductions are heafty. There is no simple way to calculate it, and the only people with the figures are DWP/HMRC.
In general, if you have ever been opted out it is best to assume that you are currently (as at 5/4/2016) entitled to (NIyears/30 * £115). From now on, you will accrue more pension at a rate of £4.45 per year up to the maximum of £155 p/w. So, providing you will have 35 years NI by SP age, and you will work for at least another 8 years from now, then you should build up to the new £155 p/w max.
The £155 is in addition to whatever private/works pension you have built up. If you are currently on target to to qualify for the £155, then there is no point in buying additional/missed NI years.
Final salary/defined benefit pensions are usually best left well alone. They are a promise by a previous employer to pay you a certain amount of money when you reach their scheme retirement age (could be 60/65/SP age). Once you leave that job, the benefit you have built up isn't 'frozen'. Its calculated at your leaving date, and then grows by a fixed percentage per year - can be RPI, CPI or a fixed percentage. There isn't a pot of money associated with your benefit - but the employer may offer you a 'transfer value' to try and get rid of you as a liability. It is rare for these transfer values to represent good value so it is important that you take qualified financial advice before you contemplate it - indeed in many cases it's now a legal requirement that you pay for the advice before the transfer out is allowed.
Defined contribution schemes are a pot of 'money'. The money is not cash though - it's usually invested in stocks/shares/bonds/funds. The idea is that it's value grows as the stock markets grow, since historically the stock market grows faster than cash+interest. The important thing is to minimise the costs associated with these pots of money - there are often fees of anywhere from 1% to 5% per year on the schemes, and that dramatically reduces the amount of growth. It is possible to get sub 0.5% fees if you take control of your own investments, but it's also possible to oops it up very badly if you chose the wrong investments.
-
Rang the helpline today, they will post me my forecast in "several weeks due to high demand". The woman seemed to imply I couldn't buy missing years for when I've been opted out...
...but might be a moot point, as I'm mid forties, and I believe state pension age for me is 68? So well over 20yrs to go... ...assuming it stays 68 ;D
-
My DB one is staying put, obviously.
The previous DC has been left where it is as fees, depending what funds I'm investing in, are between 0.4 and 0.75%.
Current DC one is at the mercy of current employer, as they match my contribution to a point, fees are around 1% :(
-
um check your fees on your current one. Fees on the default fund must be <0.75% otherwise they are breaking the law.
-
um check your fees on your current one. Fees on the default fund must be <0.75% otherwise they are breaking the law.
I'll double check that tomorrow. I might not be in default, as that makes it an easy workaround, making default a reasonably easy bonds fund, and anything with likely reasonable growth a much higher fee ;D.
-
The woman seemed to imply I couldn't buy missing years for when I've been opted out...
This is correct. Opting out didn't mean you missed a years 'stamp' - You still paid NI and you still got the stamp. HMRC then paid some of that NI money into your 'contracted out' scheme in exchange for not adding to the SERPS part of your SP. You can only buy back years for which you are completely missing the stamp - for instance if you were in full time further education (university), or living abroad, or not working and not claiming benefits. There is also a time limit - I think you can only go back something like 7 years. So if you haven't missed an NI stamp in the past 7 years there is nothing you can buy.
Your state pension age is at least 67. It is supposed to be going up to 68, but the legislation for that hasn't reached parliament yet. There is (another!) pension review going on at the moment due to publish in 2017-2018, and it's likely the results of that will be what is enacted. The govt have said that future changes won't affect anyone within 10 years of their current pension age, so if it goes up it's likely to come in in 2028 or thereabouts.
-
um check your fees on your current one. Fees on the default fund must be <0.75% otherwise they are breaking the law.
I'll double check that tomorrow. I might not be in default, as that makes it an easy workaround, making default a reasonably easy bonds fund, and anything with likely reasonable growth a much higher fee ;D.
that would be rare and quite devious - I've never seen that either. Most provider defaults don't do that, they tend to use growth assets until say 55 and move to safer stuff then.