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Susan68
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29-07-2019, 01:21 PM
1

Private Pensions

Would anyone be able to explain (in a non-technical way) how private pensions work?

and for example if money was put into a specific private pension (rather than just a savings account) to not use until pension age would DWP count it as savings, if you were on benefits?

If I started paying now something now (early fifties) what kind of figures are we talking by the time I reached pension age? (not sure what it is now for women though as I'd heard they'd raised it again?)

Would anything I had saved specifically for 'pension age' then be counted as savings when the Govt came to deciding whether or not I got a state pension and how much?

and how much is the state pension by the way? I'm assuming its a set amount for everyone and they don't top it up with disability allowance etc (as most people would have different conditions/disabilities by then).

So I'd no longer get extra money to cover for batteries for mobility scooter or if I needed an electric wheelchair full time by then? or needed to employ helpers so I could remain in my own home with my dog(s?)

Thanks

Susan
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realspeed
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29-07-2019, 02:00 PM
2

Re: Private Pensions

Are you talking about company private pension scheme or your own from one of the pension companies.
As to how much is an open question best talking to those offering private pensions.

It depends on your age- how much you put in- how long it is in there for- how you want payments when payout time is due do you want it as a lump sum or paid monthly.

Your best bet is to ask different pension companies and see what they offer


Your income either PAYE or pensions being taxed depends if you are above your personal allowance or not.

Anything to do with pensions is a minefield and you need expert advise.
Even the DWP are helpful with state pension questions

it doesn't cost anything to ask around but be specific in what you want to know in the first place

State pensions increase year on year so by the time you reach state pension age it will be different from the amount today

A forum and threads like this really cannot help much, not that we don't want to, it is because of the specialist knowledge needed
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29-07-2019, 02:21 PM
3

Re: Private Pensions

Originally Posted by realspeed ->
Anything to do with pensions is a minefield and you need expert advise.

Even the DWP are helpful with state pension questions

It doesn't cost anything to ask around but be specific in what you want to know in the first place

A forum and threads like this really cannot help much, not that we don't want to, it is because of the specialist knowledge needed
Good advice .....
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29-07-2019, 02:26 PM
4

Re: Private Pensions

Originally Posted by Susan68 ->
Would anyone be able to explain (in a non-technical way) how private pensions work?
Have a look at these two sites:

https://www.pensionwise.gov.uk/en/financial-advice

Seeing a financial adviser

An adviser will ask about your finances, personal circumstances, your goals and how you feel about taking risks with your money. This will help them to recommend retirement income products (eg flexi-access drawdown, different types of annuity) that are right for you.

The more information you have prepared when you meet an adviser, the more you will benefit. This includes details of how much is in your pot and other income.
https://www.moneyadviceservice.org.u...ancial-adviser

Choosing a financial adviser

Choosing a financial adviser might seem daunting but if you need help with a financial decision itís worth persevering. A good adviser can save you money and a lot of worry.

The key to finding the right financial adviser is working out what type of advice you need.

For example, are you looking for help with investing into your pension or a stocks and shares ISA? Are you coming up to retirement?

Are you looking for a mortgage or perhaps life insurance? Do you need specialist home, car or travel insurance?

There are lots of reasons why people need advice from a financial adviser but there are also lots of different types of adviser, so it pays to know who to go to and when.
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29-07-2019, 02:48 PM
5

Re: Private Pensions

Originally Posted by Susan68 ->
Would anyone be able to explain (in a non-technical way) how private pensions work?

and for example if money was put into a specific private pension (rather than just a savings account) to not use until pension age would DWP count it as savings, if you were on benefits?

If I started paying now something now (early fifties) what kind of figures are we talking by the time I reached pension age? (not sure what it is now for women though as I'd heard they'd raised it again?)

Would anything I had saved specifically for 'pension age' then be counted as savings when the Govt came to deciding whether or not I got a state pension and how much?

and how much is the state pension by the way? I'm assuming its a set amount for everyone and they don't top it up with disability allowance etc (as most people would have different conditions/disabilities by then).

So I'd no longer get extra money to cover for batteries for mobility scooter or if I needed an electric wheelchair full time by then? or needed to employ helpers so I could remain in my own home with my dog(s?)

Thanks

Susan
Susan I used to advise on pensions and the rule was, the earlier you start one the better return you are likely to get.
I don't know how old you are, what your disabilities are or how much income you get, so it is difficult to advise.

Your state pension will depend on whether you work, or worked in the past, and how many years you paid into NI.
It is very complicated so I would suggest you get detailed
advice & quotes from companies that do private pensions.

I worked full time for 36 years but paid a lower NI contribution, as I also contribired to a works pension. My state pension is around £550 every 4 weeks, but if you are prepared to give your personal details to a pension adviser they should be able to advise you when you should receive yours and how much it is likely to be. These site should be helpful....

https://www.ageuk.org.uk/information...state-pension/

https://www.citizensadvice.org.uk/de...or-retirement/

https://www.pensionwise.gov.uk/en/financial-advice

Your personal circumstances may mean that a private pension may not be beneficial to you..... so please ask if any of these can give you advice... they should be able to point you in the right direction!
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29-07-2019, 03:15 PM
6

Re: Private Pensions

Good advice given already so there's not much I am able to add, other than on finding a Financial Adviser. There are two types, one is a Financial Adviser who works with only a limited number of companies so may only be able to offer limited advice. The other type is an Independent Financial Adviser, these work right across the financial industry and are able to offer more specific advice, often they can give you better advice for whatever you may want their services for.

Some years ago now I didn't have a pension at all so started one through an Independent Financial Adviser. I invested the maximum I could by going back six years, which at the time was allowed, plus paying in every month for a while. Then I was made redundant and due to the tax situation I couldn't continue paying so was advised to leave the money as a paid-up policy, at the time that was worth around £13,000. I then went self-employed so decided to just leave the pension as it was.

When it came to a time where I could semi-retire I checked on that pension to see if it would help me pay off my mortgage. I was surprised to find that original paid-up policy had grown to £64,000, probably in about 10 to 15 years! That paid off my small mortgage allowing me to move home and still take a small pension for life.

Now retired, I have an Independent Financial Adviser who invests my money in the best way possible and over 10 years has done very well for me. One time when interest rates were about 6% on ordinary savings, a long time ago now, he was getting me 11% interest so I was really pleased with that. He calls on me at home once a year for an hour or so to let me know how my finances are doing, he is also available for advice on any financial matters during the year. It does cost me to have his services but what he charges is more than made up for by the excellent return on investments. The links below may be of help to you, especially and quite importantly I reckon, checking on whether any Financial Adviser you find is registered with the Financial Conduct Authority:

https://www.fca.org.uk/consumers/finding-adviser

This link gives advice on finding a Financial Adviser:

https://www.moneysavingexpert.com/sa...cial-advisers/
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Susan68
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29-07-2019, 05:29 PM
7

Re: Private Pensions

Thanks everyone for your answers.

Before I started looking into this further,does anyone know if a person is allowed to have a private pension if on ESA (due to be transferred to UC in the nextyear or so).

I think you're not allowed to have over £6,000 in savings, so I guess I'm asking if they (the DWP) would count a 'private pension plan' as savings once I had got it to over £6,000? - otherwise they would end my benefits and make me live off that money which kind of defeats the point of starting one if I won't be able to keep it until pension age before I start to use it!

I used to work but have no idea what my NI contributions were, I've been on ESA many years now. I just assumed it would switch to a fixed pension amount once I reached a certain age. I'd heard something like £42 a week?, which won't even cover my rent let alone utility bills and food etc ...which was why I was wondeirng whether I'm legally allowed to put any money aside in an account the DWP won't count as income until I reach pension age?

Thanks
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29-07-2019, 06:02 PM
8

Re: Private Pensions

Susan this is the only explanation I can find....

Will a pension affect my benefits?
Your lump sum payment from your pension will not affect either your PIP or ESA. ... If you are receiving any means-tested benefits such as housing benefit or council tax support, these will be affected by your pension payout because you are not entitled to any means-tested benefits if you have capital of more than £16,000.
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29-07-2019, 06:04 PM
9

Re: Private Pensions

Advice below given on a forum I accessed, unfortunately the links with it didn't work or I would have copied them to you. The comments below I found on that forum, they might give you some idea, but I do think it probably might be best to get advice from Citizens Advice who, according to the information I found are responsible for 'Pensionwise' on one of the links.

"Until you reach State pension Credit age then any pension pot which remains with the provider is disregarded even if you are on income based benefits. It is only if you take up one of the options available that it will affect your benefits."

"Everyone's circumstances are different. Pensionwise is a free service held by the Citizens Advice Bureau. They will highlight the options but don't offer financial advice."

https://www.pensionsadvisoryservice....s/pension-wise
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