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Govenrment Pension Scheme

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View elgrande's Profile elgrande Flag bedford 18 Mar 15 1.39pm Send a Private Message to elgrande Add elgrande as a friend

Hi
Need a bit of advise from someone if Poss.
Think Hoof will be able to help.
Just had a letter from Royal London about the scheme.
The Company I work for are using them to operate this,
Now here's the thing,I am 56 this year,and they are saying with Company contributions and tax relief my contributions will be £40 a month.
Bearing in mind I would only have about 10 years to pay in.is it worth it.

Any help or advise would be most welcome.

 


always a Norwood boy, where ever I live.

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View Stuk's Profile Stuk Flag Top half 18 Mar 15 2.27pm Send a Private Message to Stuk Add Stuk as a friend

Anything that your employer will contribute to, and you get tax relief on, is worth it.

Unless they invest it really badly but I would assume it's a fairly safe scheme they've gone for.

 


Optimistic as ever

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View elgrande's Profile elgrande Flag bedford 18 Mar 15 2.31pm Send a Private Message to elgrande Add elgrande as a friend

Quote Stuk at 18 Mar 2015 2.27pm

Anything that your employer will contribute to, and you get tax relief on, is worth it.

Unless they invest it really badly but I would assume it's a fairly safe scheme they've gone for.


Thanks Stuk.
So is it still worth it at my age.
It's the Work Place Pension Scheme.

 


always a Norwood boy, where ever I live.

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View crystal balls's Profile crystal balls Flag The Garden of Earthly Delights 18 Mar 15 2.38pm Send a Private Message to crystal balls Add crystal balls as a friend

Quote elgrande at 18 Mar 2015 1.39pm

Hi
Need a bit of advise from someone if Poss.
Think Hoof will be able to help.
Just had a letter from Royal London about the scheme.
The Company I work for are using them to operate this,
Now here's the thing,I am 56 this year,and they are saying with Company contributions and tax relief my contributions will be £40 a month.
Bearing in mind I would only have about 10 years to pay in.is it worth it.

Any help or advise would be most welcome.

Hi,

I am an independent financial adviser, and have done quite a bit of research into these new pension arrangements.

Initially companies and employees are only required to make contributions to the scheme of 1% of salary each, but this will increase over the next few years until contributions will be 3% employer and 4% employee, with another 1% tax relief. So in 2018 the amount of money going in will be quite substantial.

You could look at it as either taking or giving up a 3% salary increase; not many people would turn their noses up at that! Although these plans will primarily benefit younger people, there is still a strong case for employees in their 50s taking up the scheme, especially as after 6th April you will be able to take your pension however you like.

You will be able take all your fund as a lump sum, or space it over several years. You will be taxed at your highest marginal rate when you take it, so it may not be best to draw it all at once, but if the income you take is below the tax threshold (set to rise to £11,000 per annum soon) you won't necessarily pay any tax.

Royal London are quite a good company, and have a very easy to understand on-line system for delivering these pensions.

I hope that helps, and I don't want to go on too much here, but if you want to know more PM me

 


I used to be immortal

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View johnfirewall's Profile johnfirewall Flag 18 Mar 15 2.42pm Send a Private Message to johnfirewall Add johnfirewall as a friend

I left a company shortly after the mandatory contributions came in to force. I have a meagre £300 in the pot at Scottish Widows. I am now self employed. What's the easiest and most efficient way to continue to contribute now if possible or when I am back in permanent employment?

Thanks

 

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View twist's Profile twist Flag Miami, Florida 18 Mar 15 2.43pm Send a Private Message to twist Add twist as a friend

Are you still limited to age 52 to take a lump sum ? I ask as i have 5 years worth of contributions from 25 years back that has been sitting there slowly growing over time. Living in the USA now i am told i cannot transfer it here.
My only option is a lump sum and i am told i have to wait til im 52, well iw as told years back, wonder if it changed.
Anyone know ?

 

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View elgrande's Profile elgrande Flag bedford 18 Mar 15 2.44pm Send a Private Message to elgrande Add elgrande as a friend

Quote crystal balls at 18 Mar 2015 2.38pm

Quote elgrande at 18 Mar 2015 1.39pm

Hi
Need a bit of advise from someone if Poss.
Think Hoof will be able to help.
Just had a letter from Royal London about the scheme.
The Company I work for are using them to operate this,
Now here's the thing,I am 56 this year,and they are saying with Company contributions and tax relief my contributions will be £40 a month.
Bearing in mind I would only have about 10 years to pay in.is it worth it.

Any help or advise would be most welcome.

Hi,

I am an independent financial adviser, and have done quite a bit of research into these new pension arrangements.

Initially companies and employees are only required to make contributions to the scheme of 1% of salary each, but this will increase over the next few years until contributions will be 3% employer and 4% employee, with another 1% tax relief. So in 2018 the amount of money going in will be quite substantial.

You could look at it as either taking or giving up a 3% salary increase; not many people would turn their noses up at that! Although these plans will primarily benefit younger people, there is still a strong case for employees in their 50s taking up the scheme, especially as after 6th April you will be able to take your pension however you like.

You will be able take all your fund as a lump sum, or space it over several years. You will be taxed at your highest marginal rate when you take it, so it may not be best to draw it all at once, but if the income you take is below the tax threshold (set to rise to £11,000 per annum soon) you won't necessarily pay any tax.

Royal London are quite a good company, and have a very easy to understand on-line system for delivering these pensions.

I hope that helps, and I don't want to go on too much here, but if you want to know more PM me


Yeah big time.
Thank you very much Crystal.

 


always a Norwood boy, where ever I live.

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View Stuk's Profile Stuk Flag Top half 18 Mar 15 2.46pm Send a Private Message to Stuk Add Stuk as a friend

Quote elgrande at 18 Mar 2015 2.31pm

Quote Stuk at 18 Mar 2015 2.27pm

Anything that your employer will contribute to, and you get tax relief on, is worth it.

Unless they invest it really badly but I would assume it's a fairly safe scheme they've gone for.


Thanks Stuk.
So is it still worth it at my age.
It's the Work Place Pension Scheme.

If you can afford your contribution to it without any problem, you'll get back much more than you put in.

By 2018 the minimum payment ratios will be 4:3:1

So if you paid £40 in, your employer pays £30 in and the government pay £10 in. Effectively doubling your mone, before it's invested.

 


Optimistic as ever

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View Stuk's Profile Stuk Flag Top half 18 Mar 15 2.48pm Send a Private Message to Stuk Add Stuk as a friend

Quote twist at 18 Mar 2015 2.43pm

Are you still limited to age 52 to take a lump sum ? I ask as i have 5 years worth of contributions from 25 years back that has been sitting there slowly growing over time. Living in the USA now i am told i cannot transfer it here.
My only option is a lump sum and i am told i have to wait til im 52, well iw as told years back, wonder if it changed.
Anyone know ?

55 I believe.

 


Optimistic as ever

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View crystal balls's Profile crystal balls Flag The Garden of Earthly Delights 18 Mar 15 2.59pm Send a Private Message to crystal balls Add crystal balls as a friend

Quote johnfirewall at 18 Mar 2015 2.42pm

I left a company shortly after the mandatory contributions came in to force. I have a meagre £300 in the pot at Scottish Widows. I am now self employed. What's the easiest and most efficient way to continue to contribute now if possible or when I am back in permanent employment?

Thanks

Hi,

You are able to transfer the pot out of your employers scheme and continue to pay in yourself while you are self-employed. The pot can then be moved into any future employers scheme, except the government sponsored scheme, known as NEST, which doesn't allow transfers in.

You can either approach Scottish Widows yourself, or get a financial adviser to do it on your behalf, though there will probably be a fee to pay to an adviser.

 


I used to be immortal

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View crystal balls's Profile crystal balls Flag The Garden of Earthly Delights 18 Mar 15 3.02pm Send a Private Message to crystal balls Add crystal balls as a friend

Quote Stuk at 18 Mar 2015 2.48pm

Quote twist at 18 Mar 2015 2.43pm

Are you still limited to age 52 to take a lump sum ? I ask as i have 5 years worth of contributions from 25 years back that has been sitting there slowly growing over time. Living in the USA now i am told i cannot transfer it here.
My only option is a lump sum and i am told i have to wait til im 52, well iw as told years back, wonder if it changed.
Anyone know ?

55 I believe.


Yes, 55 is the minimum age to access your UK pension fund. It's very difficult to transfer anything to the USA due to legislation there in recent years. You could approach a "QROPS" qualified company, as these specialise in transfers abroad, but the US is far more difficult than almost anywhere.

You are probably best to keep a bank account in the UK and have your pension benefits paid into that when you reach age 55.

 


I used to be immortal

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Hoof Hearted 18 Mar 15 3.37pm

Quote crystal balls at 18 Mar 2015 2.38pm

Quote elgrande at 18 Mar 2015 1.39pm

Hi
Need a bit of advise from someone if Poss.
Think Hoof will be able to help.
Just had a letter from Royal London about the scheme.
The Company I work for are using them to operate this,
Now here's the thing,I am 56 this year,and they are saying with Company contributions and tax relief my contributions will be £40 a month.
Bearing in mind I would only have about 10 years to pay in.is it worth it.

Any help or advise would be most welcome.

Hi,

I am an independent financial adviser, and have done quite a bit of research into these new pension arrangements.

Initially companies and employees are only required to make contributions to the scheme of 1% of salary each, but this will increase over the next few years until contributions will be 3% employer and 4% employee, with another 1% tax relief. So in 2018 the amount of money going in will be quite substantial.

You could look at it as either taking or giving up a 3% salary increase; not many people would turn their noses up at that! Although these plans will primarily benefit younger people, there is still a strong case for employees in their 50s taking up the scheme, especially as after 6th April you will be able to take your pension however you like.

You will be able take all your fund as a lump sum, or space it over several years. You will be taxed at your highest marginal rate when you take it, so it may not be best to draw it all at once, but if the income you take is below the tax threshold (set to rise to £11,000 per annum soon) you won't necessarily pay any tax.

Royal London are quite a good company, and have a very easy to understand on-line system for delivering these pensions.

I hope that helps, and I don't want to go on too much here, but if you want to know more PM me


I concur with crystal balls..... I'm retired now and he's still trading.

If you need bespoike advice, you couldn't do better than talk to him as he's an Independent Financial Adviser.

 

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