I have an old company pension, which was frozen when i changed employer, i contributed for approx' 11 or 12 yrs, now i'm thinking i might be bettter of investing this money in an isa, anyone have any good advice.. ?
2007-07-12 23:57:27 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
Ignore first 2 answer ... in UK there is NO WAY you can get direct access to the funds until you Retire (and even then, only the first 25%).
However you CAN take control of the INVESTMENT of your Pension funds via a SIPP (Self Invested Pension Plan) ..
If the Pension is "Final Salary" type, and the Company is unliley to go bust, its usualy best to leave it where it is.
However if it is a "Money Purchase" type then you need to look at the Investment performance over the last 10 years and compare it against the FTSE .. if it has done significantly WORSE than the FTSE average (and this is often the case), then you may well be better off transferring the funds into a SIPP and buying Index Trackers.
In a lot of cases the exsiting "Investment Consultants" will be "churning" the investments (buying and selling in order to generate fat commissions for themselves) and creaming off so much in fees that your fund may even be shrinking in value !
If you decide to go the SIPP route, Hargreaves Lansdown is one of the best for the "Put it into an Index Fund and leave it there" approach since they dont charge annual fees.
2007-07-13 00:27:02 · answer #1 · answered by Steve B 7 · 1⤊ 1⤋
Invest
2007-07-13 00:04:45 · answer #2 · answered by GolfMad 2 · 1⤊ 0⤋
ooooohhh! noooo...just stick it in the building society.. or better still under your mattress.... and wait till Labour are out the door..then think about investing .
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steve b- is talking pants ! - As far as your old company is concerned You have Retired - you can cash in an " old pension " if you have changed employer and are currently paying into a new pension ..!! I know plenty of people who have done it ! Andy obviously has access to his cash - other wise he wouldn't be asking what he should do with it - would he ?!
2007-07-13 00:02:38 · answer #3 · answered by Anonymous · 1⤊ 1⤋
Sure. It's viable to restrict paying taxes on that lump sum. You have got to roll it over. Because of this lump sum will not come into your palms - it goes straight into an IRA (person Retirement Account), which in your case would be tax-deferred. However, should you spend it, you will pay a penalty and pay taxes on the amount you take out of the IRA (due to the fact you are now not retirement age but). You must speak to a financial guide about your retirement money.
2016-08-04 04:46:07 · answer #4 · answered by ? 4 · 0⤊ 0⤋
definite. it is a threat to stay away from paying taxes on that lump sum. you will desire to roll it over. this means that lump sum won't come into your hands - it is going on the instant into an IRA (guy or woman Retirement Account), which on your case could be tax-deferred. in spite of the undeniable fact that, in case you spend it, you will pay a penalty and pay taxes on the quantity you're removing of the IRA (on account which you're no longer retirement age yet). you will desire to confer with a economic consultant approximately your retirement money.
2016-11-09 04:59:52 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Don't worry we help to recover your old pension visit- http://www.frozen-pension-finder.co.uk/
2014-08-24 22:06:05 · answer #6 · answered by Anonymous · 0⤊ 0⤋