Pension fee advice

[Fat Larrys Band]

I would head down the mortgage route, my thinking is;
I am assuming the interest rate payable will be higher on the mortgage than whatever return your pension pot will give you?
If you put it into your pension pot - you will eventually pay income tax on it?
I am not too sure about length of term query without the figures (does the mortgage have an insurance element, in case you die?)
I am not an IFA - just a tight arse!

 

[Churchlawtonblue]

No it doesn’t. He’s confusing defined benefit with defined contribution.

so a defined contribution from one scheme to another has no limit or IFA requirement?

 

[jaseirai]

so a defined contribution from one scheme to another has no limit or IFA requirement?

As far as I know there is no limit or IFA requirements. I transfered one in 2019 (about 100k) and paid nothing whatsoever. The investments were sold and I received the valuation amount as cash into a Sipp account.

 

[hammocity]

Over 30k requires an IFA is this definite hammo?

I’ll ask my Sisters boss tomorrow, he’s an IFA, I’m pretty sure it’s a fact.

 

[dickie davies]

On a side note.....is there any merit in putting a lumpsum into a pension post?
I have a couple of endowments due to mature...and i no longer "need" them for my mortgage, as its now repayment.

Trying to decide if i use them to either:
* Reduce the length of term of my mortgage
* Reduce my monthly mortgage payments, but keep the length of term
* Put them into pension pot

Pension investment is long term and the lump sum you invest now immediately gains 20%, although if the markets crash your money could be worth less than what you just invested. It would recover over time though
So many questions to ask, how much money you need now, job security, mortgage rate and term

I had a similar conundrum the other year
My endowments matured and covered my outstanding balance on the mortgage
Did I invest the money or pay off the mortgage?
I knew my job wasn't the safest, so paid off the mortgage and what I would have paid monthly in mortgage fees I invested into my pension
I was made redundant not long after and my current job pays less, so I reduced my pension contributions. But I am so glad that I'm mortgage free

 

[SWP's back]

so a defined contribution from one scheme to another has no limit or IFA requirement?

Exactly this.

 

[SWP's back]

I’ll ask my Sisters boss tomorrow, he’s an IFA, I’m pretty sure it’s a fact.

Only for Defined Benefit pensions over that amount mate.

You can transfer £3m of Defined Contribution pensions into one pot by yourself if you have the patience.

 

[hammocity]

Only for Defined Benefit pensions over that amount mate.

You can transfer £3m of Defined Contribution pensions into one pot by yourself if you have the patience.

Thanks, I was just quoting from my experience, didn’t realise it only applied to DB pensions.

 

[FantasyIreland]

I need to make a decision.
I have a DB pension with my current employer which fully matures aged 62,and they have offered me 14years worth of service for a previous 5 year DB scheme that kicks in at 60.....I'm keeping a 13 year NHS one,which also kicks in at 60,seperate.

Yep,im confused too!

 

[ganganvince]

I need to make a decision.
I have a DB pension with my current employer which fully matures aged 62,and they have offered me 14years worth of service for a previous 5 year DB scheme that kicks in at 60.....I'm keeping a 13 year NHS one,which also kicks in at 60,seperate.

Yep,im confused too!

You would need professional advise depends on how old you are, when you want to retire, spouse or no spouse, any serious illness, whether if you choose not to move if they plan to close that scheme and enrol you in something less beneficial, etc etc not something you would get an answer on here.