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Flora MaDonald

Pension Advice Required

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Not sure about going direct to RL360 but using their Offshore Bond with a uk platform to hold the assets you could be paying as little as 0.35% pa for the wrapper and be getting in to all funds 'clean'.

I don't think its possible to go direct to RL360 - & I guess in UK you would have to pay investment advice direct - say 2-3%

within the 0.85% i wouldn't have any further "fee"

is above 0.35% based on personal experience or industry experience ?

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I don't think its possible to go direct to RL360 - & I guess in UK you would have to pay investment advice direct - say 2-3%

within the 0.85% i wouldn't have any further "fee"

is above 0.35% based on personal experience or industry experience ?

By direct I meant making an application direct to RL360, rather than via a packaged offering / tie up with a uk platform provider, not direct as in without going through an adviser.

The 0.35% I referred to would be just for the Bond itself, the wrapper. You would also have the cost of Fund Management, which of course depends on the individual funds themselves, and of ongoing advice/service, if required.

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By direct I meant making an application direct to RL360, rather than via a packaged offering / tie up with a uk platform provider, not direct as in without going through an adviser.

The 0.35% I referred to would be just for the Bond itself, the wrapper. You would also have the cost of Fund Management, which of course depends on the individual funds themselves, and of ongoing advice/service, if required.

you sound as though you know more than me, but i thought i read online, that you could only go via a broker because there had to be some advice provided - 0.35% does make sense if you consider that brokers are getting commission out of this, rather than pay UK based fee

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Can these folk access a pension abroad (Switzerland / Italy)?

I believe so - typically not worthwhile unless the pension is worth in excess of £50K

Q: How do I know if I qualify?

You may qualify for a QROPS if you conform to one or more of the following conditions:

  • A: If you are a UK/EU expatriate citizen between 18 and 75 years of age, you may apply for a QROPS pension transfer of an existing or 'frozen' UK/EU pension
  • If you are a UK/EU non-expatriate citizen, provided that you will become an expatriate within the next 12 months
  • If you have officially worked in the UK or any EU member country for any length of time
  • Citizens of the United States of America may find it difficult to apply for a QROPS Pension Transfer, as most of the schemes are not available to US nationals although most other nationalities may apply for a QROPS Pension Transfer
Edited by euan2020

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So do I (we gave them a game of football now and again). Name and shame

Doubt any of the ones I knew would have played football, & they'd have been a good bit older than yourself :ok:

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anyone been paying attention to their pensions this last year ? - mine is up around 20% although should be 25%, but that is a different story (some of this is Brexit factor and pound weakening)

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1 hour ago, Orraloon said:

Don't forget to factor in inflation. If it's running at 3%, it can quickly make a fair dent in your pension pot.

Skeptical about taking any financial advice from someone with a dodgy board rep . . . 

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Bumping this, hoping for advice.

 

I have an old Final Salary Pension Scheme that I paid into for 22 years. Ive now changed career and I'm paying into another pension so it's separate. When I hit 55 years old, I'm aware there are some new rules but I'm still a wee bit confused about entitlements......

- If I take a tax-free lump sum out at 55, does that mean I have to 'start' the pension, so the monthly payments start ? I'm aware they would be much less than leaving it alone until 65. Ideally I'd like a wee financial boost out at 55, then leave the rest until 65; Is that possible ?

- Also, does it make any sense to transfer my old pension into the new one ? The new one is not final salary, it's the Scottish teacher one.

Thanks in advance for any advice.

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Have you looked into private pensions at all? My situation was kind of the reverse of yours in that I moved a defined contribution pension into a career average one in 2008 when I changed job. That was then closed & I had to start a new DC scheme, but that only lasted a couple of years prior to my redundancy.

I got some advice recently from a financial adviser & have taken a decision to move it all into a private pot. There's a gamble involved because the pot can run out, whereas a pension won't, but the guy also talked about how your spending patterns change as you age, which fixed payments don't acknowledge - so you can end up with not enough when you want it & too much when you don't. I got a lot of projections as part of the process & plenty of chance to talk through pros & cons, which I was happy about.

The clincher for me personally was that I've not been in the best of health for some years, plus have been on lots of temporary contracts & am now doing supply teaching, so wanted an option to stop working at 55 (this August coming) if I wanted to or had to, be it through health or just no work. I couldn't afford to do that by just taking the pension as was, whereas I now have the option to do that plus take a cash sum & clear the decks so to speak (get rid of loans, mortgage).

It's certainly a gamble, & you will be officially advised not to do it, but maybe worth exploring in terms of the flexibility you're looking for?

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1 hour ago, killiefaetheferry said:

Bumping this, hoping for advice.

 

I have an old Final Salary Pension Scheme that I paid into for 22 years. Ive now changed career and I'm paying into another pension so it's separate. When I hit 55 years old, I'm aware there are some new rules but I'm still a wee bit confused about entitlements......

- If I take a tax-free lump sum out at 55, does that mean I have to 'start' the pension, so the monthly payments start ? I'm aware they would be much less than leaving it alone until 65. Ideally I'd like a wee financial boost out at 55, then leave the rest until 65; Is that possible ?

- Also, does it make any sense to transfer my old pension into the new one ? The new one is not final salary, it's the Scottish teacher one.

Thanks in advance for any advice.

Different pension schemes have different rules about what you can and cannot do. You need to speak to an independent financial advisor. They need to know all your financial and personal details before they can make proper recommendations. 

I would be amazed if anybody recommends that you transfer your old pension into your new pension scheme, though.

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On 1/6/2019 at 2:50 PM, Huddersfield said:

Have you looked into private pensions at all? My situation was kind of the reverse of yours in that I moved a defined contribution pension into a career average one in 2008 when I changed job. That was then closed & I had to start a new DC scheme, but that only lasted a couple of years prior to my redundancy.

I got some advice recently from a financial adviser & have taken a decision to move it all into a private pot. There's a gamble involved because the pot can run out, whereas a pension won't, but the guy also talked about how your spending patterns change as you age, which fixed payments don't acknowledge - so you can end up with not enough when you want it & too much when you don't. I got a lot of projections as part of the process & plenty of chance to talk through pros & cons, which I was happy about.

The clincher for me personally was that I've not been in the best of health for some years, plus have been on lots of temporary contracts & am now doing supply teaching, so wanted an option to stop working at 55 (this August coming) if I wanted to or had to, be it through health or just no work. I couldn't afford to do that by just taking the pension as was, whereas I now have the option to do that plus take a cash sum & clear the decks so to speak (get rid of loans, mortgage).

It's certainly a gamble, & you will be officially advised not to do it, but maybe worth exploring in terms of the flexibility you're looking for?

Just an opinion 

If you Xfer out of a defined benefit (final salary scheme) you will likely get 22-23 times the annual pension (todays annual values )  ie  If you are are due GBP20K a year will get give circa GBP400K which you can then invest, & hopefully have growth in excess of what the inflationary increase is yearly from your defined benefit scheme

Depends as well if you are married - If you pass typically (I think) your wife would get 50% of the defined benefit Pension as income & then itdies with her - If you have a private pension then you can bequeth 100% of what remains (avoiding death duties on pot by bequeathing this in to a further pension pot for her to manage) & which she can bequeath to further family/children etc

If no wife - then you can bequeath the Pension Pot into another Pension Pot for your inheritor, so not losing what you earned

I moved my 12 year service Final Salary scheme into private because it only represented 25% of my total pensions, and i thought i could beat the 2.5% average inflation - have grown this by 25% since i did this 2.5 years ago (full on equity funds though ) 

Anyone interested - these are main one's I settled for - Fundsmith & Scottish Mortgage  & Lindsell have excellent 5-10 year growth (although whole market has grown in that period as a qualifier - although what they do - is not churn shares + low management fees + pick good companies with good cash flow )     

Scottish Mortgage Investment Trust Plc GBP

Fundsmith Equity T Acc GBP

Lindsell Train Global Equity Fund B

Baring Europe Select Trust I GBP I

 

 

 

Funs  

     

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On 1/6/2019 at 2:00 PM, killiefaetheferry said:

Bumping this, hoping for advice.

 

I have an old Final Salary Pension Scheme that I paid into for 22 years. Ive now changed career and I'm paying into another pension so it's separate. When I hit 55 years old, I'm aware there are some new rules but I'm still a wee bit confused about entitlements......

- If I take a tax-free lump sum out at 55, does that mean I have to 'start' the pension, so the monthly payments start ? I'm aware they would be much less than leaving it alone until 65. Ideally I'd like a wee financial boost out at 55, then leave the rest until 65; Is that possible ?

- Also, does it make any sense to transfer my old pension into the new one ? The new one is not final salary, it's the Scottish teacher one.

Thanks in advance for any advice.

Likely best to keep it in Final Salary Scheme & not even sure now you can Xfer to Defined Contributions

Lump Sum - Beleive you can delay withdrawals - have read of this 

https://www.gov.uk/personal-pensions-your-rights/how-you-can-take-pension 

Xfer - Possibly if you think you can grow quicker than the yearly inflationary increase - + preserves the pot of money for future inheritance - If you and wife die, then pension will die as well - but if in defined contributions you can bequeath the pot tax free into another pensions (if define benefit payout is more than 30K will need to have the xfer reviewed which costs around 800 pounds)  - Typically payout is  22-23 times what your annual pension would be in today's money - sometimes some pension funds want rid of liability and will give 28 times - for 22 years service your Pension should be roughly 1/3rd of that person doing your job is getting paid today  - for sake of argument if current pay is 30K your 22 years service would be worth 10K * 22 = 220K Pot 

+ I guess in a private pension you could make withdrawals @ 55 (25%) when for company define pension you might have to wait until say 60 or 67 (or i guess thinking back i do think my prior employer would pay out earlier but at a reduced yearly rate - cannot remember if that age was 55 or 60) 

Personally I wanted control + my defined contribution was only 25% of my 2 pensions - so moved it across to a platform where i could have choice of 8000 funds - my employers defined contribution platform only gave access to 8 funds from Blackrock   

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Any advice on who’s best to open a private pension with?

Ive only recently started thinking about pensions etc and as well as having my pension through my work I’m wanting to maybe see about opening a private one

How do you go about it, Can you just simply walk into a branch and deal with someone in person?

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58 minutes ago, DoonTheSlope said:

Any advice on who’s best to open a private pension with?

Ive only recently started thinking about pensions etc and as well as having my pension through my work I’m wanting to maybe see about opening a private one

How do you go about it, Can you just simply walk into a branch and deal with someone in person?

Ideally I’d say go through an IFA. The guy we dealt with showed us all sorts of projections & scenarios & it did really help with deciding what to do. 

In my case, I really want an option to be able to stop work altogether if my health nosedives any further & sticking where I was didn’t give me that option. It’s a risk, but the guy talked through it all & I feel confident I understand what I’ve done & how it could go wrong. 

We moved mine to Royal London & it’s done well so far. I can’t touch it until August but so far so good. Which provider you choose does depend on your approach to risk & so forth as well as your age, etc. 

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2 hours ago, DoonTheSlope said:

Any advice on who’s best to open a private pension with?

Ive only recently started thinking about pensions etc and as well as having my pension through my work I’m wanting to maybe see about opening a private one

How do you go about it, Can you just simply walk into a branch and deal with someone in person?

If you know what you  want to do - go through a Platform such as Hargreaves Lansdown & Open a SIPP & choose your own funds (or just shares ) - risk based on your age & how ballsy you want to be 

Platform will charge a fee like say 0.35% and the funds you chose will have an embedded management fee of typically say 0.8%-1.2% 

word of warning - IFA's really are just Salesmen - I am now starting to see ex colleagues of Royal Bank of Scotland who have been binned after 25/30 years service jumping across to be "Wealth Managers" & they weren't the sharpest tools in the box - they don't have any investment experience - @ one time guys  were jumping into roles from being joiners  & were selling after 1 month of exams  

If i was to pick any pension company it would be Scottish Widows -  thought that before i looked up net

https://www.ftadviser.com/auto-enrolment/2017/10/04/data-uncovers-best-performing-workplace-pension-fund/

Although the returns shown in the website are pretty piss likely cos not fully invested in equities - seem's the auto enrolment funds from all companies are too conservative 

Funds I quoted above are one's referred to me by my IFA,  which are the recommended options from De Vere- but always being based on my risk rating of 8-9 out of 10

This one has grown 100% in  5 years - Pretty much the Poster Child for Investment funds this last 3-5 years

http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000LK2Q  

https://www.fundsmith.co.uk/

 

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8 minutes ago, euan2020 said:

If you know what you  want to do - go through a Platform such as Hargreaves Lansdown & Open a SIPP & choose your own funds (or just shares ) - risk based on your age & how ballsy you want to be 

Platform will charge a fee like say 0.35% and the funds you chose will have an embedded management fee of typically say 0.8%-1.2% 

word of warning - IFA's really are just Salesmen - I am now starting to see ex colleagues of Royal Bank of Scotland who have been binned after 25/30 years service jumping across to be "Wealth Managers" & they weren't the sharpest tools in the box - they don't have any investment experience - @ one time guys  were jumping into roles from being joiners  & were selling after 1 month of exams  

If i was to pick any pension company it would be Scottish Widows -  thought that before i looked up net

https://www.ftadviser.com/auto-enrolment/2017/10/04/data-uncovers-best-performing-workplace-pension-fund/

Although the returns shown in the website are pretty piss likely cos not fully invested in equities - seem's the auto enrolment funds from all companies are too conservative 

Funds I quoted above are one's referred to me by my IFA,  which are the recommended options from De Vere- but always being based on my risk rating of 8-9 out of 10

This one has grown 100% in  5 years - Pretty much the Poster Child for Investment funds this last 3-5 years

http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000LK2Q  

https://www.fundsmith.co.uk/

 

As an old socialist at heart and thereby wanting to have as little involvement in the machinations of capitalism, investments, shares pensions etc. What would be your view  of  taking every penny you've got, cashing in pensions etc, and using bulk of your wages on a mortgage to buy the most expensive house you can get as a future proof plan.

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3 hours ago, Eisegerwind said:

As an old socialist at heart and thereby wanting to have as little involvement in the machinations of capitalism, investments, shares pensions etc. What would be your view  of  taking every penny you've got, cashing in pensions etc, and using bulk of your wages on a mortgage to buy the most expensive house you can get as a future proof plan.

i'm no soothsayer - but likely you are better buying multiple properties rather than one - leveraging any credit you have and have expectation that tenants pay your mortgage

I was always of the opinion that UK property was overpriced and was avid member of Houseprice.com so have an inbuilt negativity on "house prices must go up"

Although i have always been debt averse and never owed more than 2K  

 

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10 minutes ago, euan2020 said:

i'm no soothsayer - but likely you are better buying multiple properties rather than one - leveraging any credit you have and have expectation that tenants pay your mortgage

I was always of the opinion that UK property was overpriced and was avid member of Houseprice.com so have an inbuilt negativity on "house prices must go up"

Although i have always been debt averse and never owed more than 2K  

 

Nah. Think you're missing the point here.,  " As an old socialist at heart and thereby wanting to have as little involvement in the machinations of capitalism", it's not likely that I'm going to exploit others into paying my mortgage. I'm a tad surprised that you would come up with but ' likely you are better buying multiple properties rather than one - leveraging any credit you have and have expectation that tenants pay your mortgage'.

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13 minutes ago, Eisegerwind said:

Nah. Think you're missing the point here.,  " As an old socialist at heart and thereby wanting to have as little involvement in the machinations of capitalism", it's not likely that I'm going to exploit others into paying my mortgage. I'm a tad surprised that you would come up with but ' likely you are better buying multiple properties rather than one - leveraging any credit you have and have expectation that tenants pay your mortgage'.

Missed the edit.

Maybe my fault, should have made it clear the the property I'm paying for is the one I'm living in. Although I thought the 'old socialist' would have covered it. Anyway, leverging, debt averse, inbuilt negativity just phrases to con people out of there hard earned and get them on to the capitalist merry go round.

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As someone who has drifted through the ages of Socialism from young firebrand to unreconstituted Trotskyist to grumpy old leftist git, I get where you are coming from. My dad was a bit of a trade unionist & lifelong Labour man in his day (my first ever picket line was with him at Hopkinsons' in Huddersfield in 1972 when he was on strike for months on end). Anyway, I used to argue the blue blazes with him in my teens when he'd tell me to buy a house, save up..."you'll never beat Capitalism so you might as well join it"...I hated him for saying it, yet here I am :(

For me personally, much as it sticks in my throat to be anywhere near a company with 'Wealth Management' in its name...& bugger me I don't feel bloody wealthy, but I reckon Capitalism's need to extort my labour for a pittance would put me in an early grave if I couldn't find a way out.

So I'm performing some political mental gymnastics here telling myself that I've found a way to screw the wage slave system, sack off the student loan I'm supposed to be forking out on until I'm 85 & still sit posting political rants on meaningless internet forums to convince myself that I'm still a right-on radical dude that can change the world. All I'm saying is come the glorious day of the Corbynistas, just keep your hands off my portfolio.

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12 hours ago, Eisegerwind said:

As an old socialist at heart and thereby wanting to have as little involvement in the machinations of capitalism, investments, shares pensions etc. What would be your view  of  taking every penny you've got, cashing in pensions etc, and using bulk of your wages on a mortgage to buy the most expensive house you can get as a future proof plan.

That's a crazy idea. You can't eat a hoose.

 

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11 hours ago, thplinth said:

Buy precious metals. Bury them.

thplinth swanson.

Who was it who was funding their pension by investing in silver. Was it Scotty? Haven't heard much recently about how he got on.

Buying some precious metal as a safety net might not be a bad idea in today's economic climate. Some economists are suggesting that when brexit eventually happens it could trigger another global meltdown. Possibly bigger than the last one. It's mainly guesswork though, IMO.

 

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