Private pension. I don't understand!

[RAYK47]

All the best N4LLY, hopefully you will respond well to the treatment. Such sad news to hear.

Final salary pensions have been as rare as rocking horse shite since 2000 (i joined ICL/Fujitsu in 1999 and missed out on the Final Salary pension by about 6 months), anyone who got one after that is very lucky. Pensions tend to follow the markets and there is a lot that can spook the markets, economic downturns i.e. housing crash, Brexit, war, even US elections can have an impact. The US have a big impact as most trading is done in dollars.

I work for an FX trading company but i am in IT so don't really understand it.

 

[Nanu]

Reading this thread makes me realise how lucky I am having two final salary pensions.

It also makes a mockery of civil servants, NHS and other government employees going on strike quoting how poorly they are paid.

Yes I was paid less per hour than most but when you take into account what I am earning now retired compared to those in the private sector, I have been handsomely rewarded for the work I have done. Those striking for more money who have final salary pensions should be ashamed.

Good luck to all those stressing over their private pensions

 

[Ole gits rule]

N4LLY, sorry to hear the news, hope everything works out for the best.

Pensions, what a pain in the arse, have cashed in my coal board one at 55, for a private one which seems to have stagnated for the last few years but suddenly jumped about 8% in the last month.

Got a works one running - node where that is right now as I need my statement.

SWMBO has an NHS pension, partially final salary and partially contribution based - they may get a decent pension but they pay a load in, hers is between £450 & £500 a month which is a chunk.

 

[ekimj10]

N4ALLY wrote:
'Do not think i have to worry any more as started yesterday round one of Chemotherapy for Advanced stage 4.'

This year I've had about 8 weekly chemo treatments, followed by similar course of high intensity radiotherapy, this follows a recurrence of lung cancer following an op, 3 years ago. In hindsight the chemo was OK but after the radiotherapy it seems the damage caused by the treatment is still healing and painful.
Not looking for any sympathy but wanted to follow Mr N4ALLy's praise for the HHS treatment received. It could not have been bettered and not enough publicity is given for the brilliant work that the NHS does.

 

[enuff_zed]

[ref]N4LLY[/ref], echoing everyone else really. Thoughts are with you and your family.
A sh*tty Christmas present indeed, but I hope you can all find a way to enjoy it regardless.

 

[Pondrew]

So back to pensions....

I have been keeping a close eye on my (three) private pensions lately.
As of today, they have grown 5% in a month! The amounts are now higher than they have ever been and I still don't know why. Maybe the Israelis bombing the shite out of the Palestinians is good for business? :?

 

[Scubaregs]

Yep, mine have done closer to 10% I'd say, though slight dip today.

 

[True-Blue]

@N4LLY - leave no stone unturned, investigate medical trials.

My partner was diagnosed with secondary (stage 4) with multiple sites including both lungs, liver etc. in 2020 after initially being treated in 2019.

We found a medical trial, which she met the criteria for, and we travel from Bristol to St Barts every 3 weeks (occasionally 4 weeks) so she can have a chemo/immunotherapy combination treatment. She is doing very well (fingers crossed) 3 years later.

Her initial medical team (including a BUPA consultant) did not offer any information on the trial and had to investigate it after we brought it to their attention - Shocking, but true I’m afraid.

Thoughts are with you

 

[True-Blue]

My largest pension with Zurich doesn't allow me the 25% withdrawal which I don't like.

Not many old schemes set up on this basis, but transferring to a new scheme; Stakeholder / PP / SIP will enable the 25% PCLS option.

SOLLA adviser not required, these advisers have normally passed the long term care exam (CF8) which is straightforward and is not related to pension advice. SOLLA is focused on elderly people and long term care provision typically.

Unless your pension (or other market based investment) is hedged against exchange rates (currency risk) the values may not reflect stock market variations even if in a tracker fund/ETF. For example, you might hold an S&P500 ETF/Tracker and your valuation may drop when the index rises because the £ vs $ may change by more. (The reverse is also true).

 

[N4LLY]

Oh my gosh Thanks's all for your kind words and thought's. Really taken aback.

Will add car and health updates to the Winter workhorse, thread so this can remain pension focused

Have dug out the policy numbers / details of the various accounts i hold.
When the Chemo fog clear's will try to make sense of what they are or worth

Just wondered, as i 'may' not be able to draw any pension from them, can i cash them in ?? :roll: :lol:

 

[M1k3yC]

Just wondered, as i 'may' not be able to draw any pension from them, can i cash them in ??

Maybe. It depends. https://www.gov.uk/early-retirement-pension/personal-and-workplace-pensions
It would be worth contacting your pension provider(s) when you feel up to it and asking the question.

Good luck with the treatment - fingers crossed for you.

 

[M1k3yC]

As of today, they have grown 5% in a month! The amounts are now higher than they have ever been and I still don't know why.

Do you know what you are invested in?

Inflation numbers have been coming in below expectations leading to markets pricing in interest rate cuts by central banks sooner than previously anticipated. This has caused a widespread rally in equities. The FTSE 100, S&P 500, Dow Jones Industrial Average, and Nasdaq are all up over the last month (at time of writing). The increases vary but as a generalisation they've gained mid-single digit percentages which tallies with your 5% observation if you have sizable global equity exposure.

 

[Pondrew]

Just wondered, as i 'may' not be able to draw any pension from them, can i cash them in ??

I thought you could as long as you are over 55 (but I am obviously NO expert otherwise I wouldn't have started this thread! ). Only problem is it is then taxable and added to your yearly earnings, which will push most over 40% tax bracket.

 

[Pondrew]

Do you know what you are invested in?

Nope not a clue! The reply from Martin (true blue) and yourself just confuses me more. I don't do financial speak and have less idea how it all works. I just want to (when I'm ready) transfer all pensions into a single, simple draw-down product which will be as safe as can be.

 

[Pondrew]

Oh my gosh Thanks's all for your kind words and thought's. Really taken aback.

There is a real sense of community on this forum (even though it is rarely spoken about). You are in many of our thoughts, Sean!

 

[M1k3yC]

I don't do financial speak and have less idea how it all works. I just want to (when I'm ready) transfer all pensions into a single, simple draw-down product which will be as safe as can be.

To login to each one and look at how the money is invested, then examine what's happening in the world and financial markets in the broadest sense to see why the investments are moving isn't as hard as you might think. If it were me, I'd want to know what the exposure was and gain a rough idea of the reasons behind movements. I've chosen to manage my own self invested personal pension (SIPP) though, so I'm atypical. I can understand why you're put off as financial markets in general are an enormous and varied space.

Think about getting some financial advice. You could start here if you're eligible: https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise (it's free, but I don't know how much they can offer). A few forum members have PM'd me details of financial advisors in the past (I haven't followed up and my needs are different) so I'm sure people can provide recommendations.

Apologies if the above ground has been covered - it's a five page thread and I dipped in and out.

 

[Pondrew]

Think about getting some financial advice. You could start here if you're eligible: https://www.moneyhelper.org.uk/en/pensi ... nsion-wise (it's free, but I don't know how much they can offer).

Thanks. I will speak to them once I have options from my current pension providers. I have spoken to "my" IFA, but he just sees pound notes coming his way IMO and has tried to 'blind me with science'. I am not paying anybody a percentage just to advise on a product, that's ridiculous.

 

[M1k3yC]

I have spoken to "my" IFA, but he just sees pound notes coming his way IMO and has tried to 'blind me with science'. I am not paying anybody a percentage just to advise on a product, that's ridiculous.

I'm opposed to that as well. I was looking for someone to charge a flat fee to discuss investment strategies with. I didn't look very hard but I kept running into the percentage charging structure.

This article on Which? covers a lot regarding financial advice, where to get it, what it costs, and where you can get it free or more cheaply: https://www.which.co.uk/money/investing/financial-advice/how-much-financial-advice-costs-aODa70J6nYs7

 

[Pondrew]

Thanks Mike, greatly appreciated!

 

[TitanTim]

Best wishes N4LLY, keep the faith and hang in there

Re Pensions mine is a Local Government pension so feel lucky I could get out of the 9 to 5 dreary world at 58.

I think with any pension you soon find out the tax man is your mortal enemy. If you have any kind of private pension think carefully if your deciding to cash it in as a lump sum and the tax implications. I had an additional small private pension that I stopped paying into years ago and it just sat there maturing and decided to cash it in all in one go as it wasn't a massive amount and thought hell I deserved it. I was still stung to the tune of 7 grand tax I think it was so still pretty galling.

Even my Local Government pension tax free lump sum as it was paid to me 2 months late it accrued a couple of hundred quid interest which the HMRC have advised me I will need to declare after next April. So interest on a tax free lump sum may possibly be taxed depending how much total interest I've accrued on savings. Simply put there out to get you no matter how hard you've worked

Tim.