Private pension options for a 50+ year old

[bobfather]

I was made redundant 10 months ago and locked down my final salary pension with that company. I am 50+ and had been paying into my private pension and NI since I was a teenager. I secured a new job very quickly but have not yet sorted out a new private pension. With the recession and interests so low investing seems to be a complete waste of time. Is there a sensible private pension option for someone with limited working future, say 10 years.

[Wings]

I recently transferred all my pensions to a low cost SIPP Pension with Hargreaves Lansdown, that leaves you in control.

http://www.h-l.co.uk/pensions/sipp

[funster]

bobfather said:

I was made redundant 10 months ago and locked down my final salary pension with that company. I am 50+ and had been paying into my private pension and NI since I was a teenager. I secured a new job very quickly but have not yet sorted out a new private pension. With the recession and interests so low investing seems to be a complete waste of time. Is there a sensible private pension option for someone with limited working future, say 10 years.

If you have an existing personal pension with a provider you're happy with you can just keep contributing to that- just contact the company it's with an let them know the situation and it's probably just a case of setting up a new dd.

You normally have quite a lot of control over how any personal pension is invested without having to move it to a SIPP, again- just talk to the provider and they'll let you know your options and information (but won't be able to give you advice).

Even if returns are low on the pension investments you still benefit from the tax relief (which means £1.25 arrives in your pension for every £1 you contribute, if you're a basic rate tax payer- more if higher rate).

PM me if you want more info!

[dirty boy]

Wings said:

I recently transferred all my pensions to a low cost SIPP Pension with Hargreaves Lansdown, that leaves you in control.

http://www.h-l.co.uk/pensions/sipp

I too have my pension in a H-L sipp.

It's certainly a decent option, you get the tax relief and can invest in pretty much what you like, meaning if it goes wrong, it's your fault and you can't blame someone else for your pension not performing.

[bobfather]

Misunderstanding possibly. I called it a private pension, possibly not then. It's the final salary pension provided by my last employer. I can't pay into that anymore because it was closed and T&C's locked when I ceased working for them. That pension and its T&Cs are very healthy and so I don't want to move it. I just want to put some of my current income into a provision that will further boost my income when I finally retire in around 10 years

[Dave_ITR]

In previous employment, I paid into a pension (as did my employer) & I managed the money myself online.

Does the HL option work in the same way?

Is this option worthwhile for somebody early on in a pension paying in small amounts every month or is it designed for higher earners paying in a larger amount each month?

[Tiggsy]

Although...if only saving those sort of small amounts it indicates probably basic rate tax payer. You need to think about your tax status in retirement because if you have enough saved to mean you will pay BRT then as well....well, the tax you save is paid back (in overly simplified terms) If thats the case its worth looking at alternatives whether that be ISA (more flexible) or using wifes pension...often wifey will have little and be a non-tax payer in retirement - so getting her BRT relief now is of real value.

[cbcbcb]

bobfather said:

I was made redundant 10 months ago and locked down my final salary pension with that company. I am 50+ and had been paying into my private pension and NI since I was a teenager. I secured a new job very quickly but have not yet sorted out a new private pension. With the recession and interests so low investing seems to be a complete waste of time. Is there a sensible private pension option for someone with limited working future, say 10 years.

There was something in the news a week or so ago about ISAs being more tax efficient than a pension for certain groups of people. Could be worth investigating if you don't otherwise use your allowance.