Can I access my long-dormant pension?

Covid19

Hi.

I'm 49 years old. Up to 6 years ago, I had been contributing to a work pension for around 15 years, every month. Then, 5 years ago ago, I left the company and joined another, where I began contributing to a separate pension.

I have two questions.
1. Is it possible to gain access to my old pension, to continue contributing to it, to withdraw some of it or to move it to a safer or more controllable position?

2. Why is the insurance broker, who handled my new employment pension set-up, be really keen for me to get access to my old pension. To the point where he has been calling me every second day?

I would appreciate some help with this as there is a family emergency and I am trying to figure out a few things. I'm very much in the dark when it comes to.pensions.

Thank you,

Paul.

conor_mc

Covid19 wrote: »

Hi.

I'm 49 years old. Up to 6 years ago, I had been contributing to a work pension for around 15 years, every month. Then, 5 years ago ago, I left the company and joined another, where I began contributing to a separate pension.

I have two questions.
1. Is it possible to gain access to my old pension, to continue contributing to it, to withdraw some of it or to move it to a safer or more controllable position?

2. Why is the insurance broker, who handled my new employment pension set-up, be really keen for me to get access to my old pension. To the point where he has been calling me every second day?

I would appreciate some help with this as there is a family emergency and I am trying to figure out a few things. I'm very much in the dark when it comes to.pensions.

Thank you,

Paul.

1. You prob can’t add to it once you’ve left their employment. Withdrawal, if it were possible, would be taxable so don’t do that. You should be able to transfer it to another scheme.

2. Commission on the full transfer amount.

Curiousness99

I’d recommend sticking up the post on askaboutmoney.com some very helpful and knowledgeable posters there, pensions stuff is pretty technical and you can partially access certain arrangements from age 50but it depends on a number of factors

Given the broker is calling you continually, it suggests you can access 24% of pension at age 50. The broker is getting paid commission

There are certain pension arrangements you would most likely not want to access but the area is as I said all very technical’

To clarify

As per above post it’s highly unlikely that you can contribute to the existing arrangement and if you can access you might be able to get 25% tax free but depends on how long you were in the scheme, I can’t recall is it 10 or 15 years I,e if more than that you can’t do the tax free bit

stefanovich

conor_mc wrote: »

2. Commission on the full transfer amount.

Doesn’t sound like he’s giving impartial advice. Is there an alternative where he can avoid the commission cost?

stefanovich

Curiousness99 wrote: »

Given the broker is calling you continually, it suggests you can access 24% of pension at age 50. The broker is getting paid commission

This kind of behaviour seems quite predatory.

Tow

1. Maybe, depends on the type etc. You can probably transfer the units to your other pension. However, you will lose money on both selling and buying the units.

2. As above. Commission. The sales man and pension companies will make money from you.

As you can see it is probably not in your best interest to move the pension. Unless their units are not performing or have very high charges. I would keep in touch with your old pension company, make sure they have up to date contact details etc.

Advise from ramdomer on the internet, pay independent advisor for real advise.

Henry Ford III

Yes early retirement is possible from age 50 onwards.

Yes a Broker or Advisor is chasing a bit of potential business. There's nothing wrong with that, particularly if the advise they are giving is sound and adds value. A decent advisor is well worth their cost and will offer a choice of fee or commission based advice. On smaller stuff the commission based option can actually work out cheaper. Fee/commission disclosure is mandatory so there's no hiding it, which seems to be another myth that's widely believed.

Discount brokers are indeed cheap, but a lot of clients end up coming back to the I.F.A. arena after bad experiences where usually through lack of knowledge they end up in a mess with their pensions and investments. Unfortunately by the time everything gets sorted out the untangling will have cost them more not less.

So whilst discount brokers have their uses for the highly savvy client chances are the independent route is better for the vast majority.

A good advisor will have the knowledge and experience to assess a clients financial position and find optimal solutions and may come up with ideas and innovations.

You'll get none of that from discount brokers.

I think this forum is way too quick to default to the cheapest possible solution, which is often frankly unsuitable.

Good advice is always worth paying for.

stefanovich

Henry Ford III wrote: »

Fee/commission disclosure is mandatory so there's no hiding it, which seems to be another myth that's widely believed.

There's hiding it and then there's failing to highlight it. If disclosure amounts to small print at the end of a contract then most (unfortunately) would not read it. Especially if they are under severe financial pressure.

Lifetime loans for instance - legal but morally reprehensible.

I've had bad professional advice in the past - now I do my own research.

Jim2007

stefanovich wrote: »

Lifetime loans for instance - legal but morally reprehensible.

Oh do let's hear the moral issue in me borrowing against my house to repaid on my death? Keeping in mind that it is my house and my choice to do with it what I will....

stefanovich

Jim2007 wrote: »

Oh do let's hear the moral issue in me borrowing against my house to repaid on my death? Keeping in mind that it is my house and my choice to do with it what I will....

What could possibly be wrong with giving a vulnerable old person a high interest loan which completely wipes out their estate while enabling vultures to profit at their and their families expense?

Henry Ford III

stefanovich wrote: »

There's hiding it and then there's failing to highlight it. If disclosure amounts to small print at the end of a contract then most (unfortunately) would not read it. Especially if they are under severe financial pressure.

Lifetime loans for instance - legal but morally reprehensible.

I've had bad professional advice in the past - now I do my own research.

It's not small print at the end of a contract. It's a pre sale disclosure notice with a cooling off option.

Lifetime loans aren't sold be retail insurance brokers and advisors. Please try to remain on topic.

stefanovich

Henry Ford III wrote: »

It's not small print at the end of a contract. It's a pre sale disclosure notice with a cooling off option.

Lifetime loans aren't sold be retail insurance brokers and advisors. Please try to remain on topic.

What I am trying to arrive at is an understanding of what that means in practical terms. Does a vulnerable person have adequate protection or is there room for exploitative behaviour by the advisor?

Henry Ford III

stefanovich wrote: »

What I am trying to arrive at is an understanding of what that means in practical terms. Does a vulnerable person have adequate protection or is there room for exploitative behaviour by the advisor?

Whilst no system of regulation is perfect ours is pretty robust and actually contains special provision for vulnerable consumers.