A couple of pension questions if anyone can help please

[talkingdeadscot]

I've been trying to sort some sort of provision for retirement, I'm 59. From what I've read it seems that a private pension would be best because of the tax and benefit implications. At the moment I only have a state pension to look forward to and possibly some PIP if its not taken away. So, my questions are;

1. When I was first ill I cashed in my 2 small pension pots amounting to about £6k. Some information says I've triggered MPAA so limiting further pension contributions that attract tax relief to £4k pa. Other information says I haven't as this comes under 'small pots regime' but also that I would have had to specify this at the time. Can anyone point to a definitive answer?
2. I'm looking at Vanguard but I don't want to self select my investments. I'm also looking for low risk as I'm anticipating this money as being more savings than long term investments. How do I know I'm selecting the right investment package? Thank you if you can help.

1. No idea. I would dig out paperwork from that time and see if that helps at all.

You have not mentioned having an earned income, so if you do not have employment then you will be limited to £2880 (£3600 gross) going in to a pension to get tax relief - you can pay more in but do not get tax relief. Not all pension providers will allow this.

1. Vanguard is a fund house, you can buy their funds through various platforms who provide a Self Invested Personal Pension. You may find some providers who offer Vanguard funds within a managed pension.

If you are going direct to Vanguard via their SIPP then you could look at Life Strategy funds and Target Date funds. The Target Date funds will adjust risk level dependent on the date selected. Life Strategy funds come in a range of risk levels.

As you are at an age where you can already access money in personal pension or SIPP then listening/watching information aimed at those already in retirement may be appropriate.
meaningfulmoney.tv/2021/01/06/the-ultimate-guide-to-investing-in-retirement/

Thank you, very helpful

Hi. Have a look on TPAS. It's free and really helpful for impartial info to help you get answers and understand what it all means. www.pensionsadvisoryservice.org.uk/

Pensions Advisory Service is a very reputable organisation. Their fact sheet says nothing about advising anyone, and it seems to me that that would be a pointless step anyway - advise whom?

Perhaps it’s from somewhere saying that HMRC should be informed? There would have been tax to pay, but most (all?) pension companies would deduct that before paying you.

It needs to be 3 pots maximum, within one 12 month period, and totalling under £10K.

www.pensionsadvisoryservice.org.uk/content/publications-files/uploads/Spotlight_Taking_Small_Pensions_as_a_One-off_Lump_sum.pdf

Call them! www.pensionsadvisoryservice.org.uk/

They can’t give you investment advice (by law) but they definitely should be able to reassure you on small sums rules 👍🏻

@Fairydustrust cross posted 😀