Thetownend.com

I guess others are in a similar situation. I have several dormant pensions from previous jobs. I'm hurtling towards 55 which means I could start to draw down a tax free lump sum, but I could also look into merging into my current pension, or both.
Anyone been through this or any advice welcome.

I think from my research on here, the basic premice was;

Get proper financial advice before making any decisions.

Echo Bob’s comments.

Find a Financial Advisor (get some recommendations if you can).
I cashed all mine in a few years ago & up to this point have been taking a tax free lump sum each year so far.
I’ve now got to the point where next year I’m going to have to take it as a monthly pension which I have to pay tax on, but your FA will be able to point you in the right direction

I won't be drawing down a pension whilst I'm working due to higher tax rate etc.

Cash ‘em all in. Spend some of the money on booze and loose women - then just waste the rest.

Spoken like George Best!

Yeah. What a quote from the great man!

Being serious, though, you need to decide what impending retirement you would like. I’ve hit the age where an awful lot of my contemporaries are dying off or facing health problems.

Bollocks to rainy days - enjoy what you’ve got while you are able to enjoy it.

You’re a long time dead.

Apparently!

By the time i get to retirement age there will be no state pension i should think.

I want to finish work full time at 60, already own my house etc, so will see how it goes. Got a pension from Fire Service which i paid into for 14 years. Also got LGPS which im paying into now.

Only another 19 years to go!

I’d be 89!

That’s if the government haven’t arranged a cull for us by then.

Well my advice costs money, but I'll give some pointers ;)

It's not always straightforward. Some old pensions allow drawdown i.e. take your tax free lump sum but no income, but a lot don't.

You could consolidate into your workplace pension, but there might be an issue with wanting to take a tax free lump sum and continue paying into it. Some pension providers can't cope with it.

If you take income as well as the tax free lump sum, you'll be limited on how much you can pay into a pension from that point.

Your average TEFer might tell you to cash them in and blow the lot now, as enticing as that sounds you need to find the balance between taking and spending the cash now vs needing it later in life. Just because you can take money out at 55 doesn't mean you should.

Pensions are there to provide income throughout retirement. Many people underestimate how long they'll live for and risk running out of money by being a bit too care free, passing the burden onto their future selves. Trying to survive on a state pension of £11.5k would be a meagre existence.

In my professional opinion, when it comes to pensions/retirement planning the only way you'll know for certain which is the right approach is to take advice from someone qualifed and preferably one that does cashflow planning/forecasting.

Feel free to shoot me a PM if you want to ask anything specific.

As I’m getting to the age where I’m looking to take my lump sum I don’t think this applies if you are lucky enough to have a defined benefits/final salary scheme. As far as I can make out the pension recycling limits only apply to Defined Contribution schemes.

I know it's going to wildly vary, but is there a rough ballpark figure on that.

I'm 51 now (FFS) and it's getting to the time I need a dose of reality through FA.

Feel free to DM me, not asking for a quote, just ballpark

I was referring to what's known as the Money Purchase Annual Allowance (MPAA), which as the name implies only applies to money purchase a.k.a defined contribution pensions.

If you take income from a final salary a.k.a defined benefit pension, the MPAA does not apply.

Recycling rules are something different entirely, which are to discourage people from taking a tax free lump sum and then pumping it straight back into a pension to benefit from tax relief.

You're looking at anywhere between £500 and £2,500 probably.

Ah, OK. I'll start saving then but thanks.

Thanks for the clarification. I’m about to take my DB lump sum to fund some significant property upgrade and increase the actual contributions while I still work for 3 years leaving my take home pay the same and building up another small pot for when I actually retire.

Presumably you're in a workplace pension of some kind? PM me who it is, some offer "free" advice.

Im the same as 4D (but with a loose wallet).

Is there some website where you enter in your details and your old pensions pop up?

Yeah, FLOPS.COM

Flash's Old Pensions  :)

Ha ha! The Gluepot have taken most of it!

There's been a "pensions dashboard" mooted for many years, but it's unlikely to ever get done.

You're going to need to dig through your paperwork and piece it all together.