Does ANYONE understand pensions?

[flashingnose]

Because I sure as hell don't. I've got two (one is a contracted out of SERPS thing) which are slowly gathering dust while I'm a SAHM. Did I read somewhere that you can now invest in property as part of your pension? This appeals to me more as I "understand" property IYKWIM.

I really feel I need to do something about this (or at least understand what it is I've got) - is anyone else in this position? Has anyone done anything about it? Is anyone a pensions expert or an IFA?

Help!

No, no, no and no. (Did I catch them all? Meant to say no to every question.) Don't understand pensions at all, but am relying on dh making huuuuge amounts of money between now and then. Sorry, absolutely no help at all!

You can do this - probably best to see an IFA. In fact you've always been able to invest in property but from April 2006 you can invest in residential as well as commercial property with your pension scheme assets.

However you can't use your Protected Rights funds - the contracted out ones - for property investment.

In can be an expensive option as you'd need to transfer your funds to a Self Invested Personal Pension Scheme (SIPPS) where the annual management fees will be high.

Gosh maretta, you're not an IFA are you (she says hopefully)? Thanks for the info - so the contracted out money is stuck there then ?

I'm not - sorry.

You can move the contracted out funds to a different insurance company but that's really about your only option.

Not that I'm saying that this would necessarily be a sensible thing to do. You'd need to get advice.

Worth a try

It sounds like you would be looking for a "SIPP" (self-invested pension plan) - best go see a IFA in person in any event (even if one does come on here...)

Thanks roobie, I would definitely go and see someone (even though my eyes glaze over at the mere word "pension") but for some reason I would trust them a lot more if they were a MNetter .

Bump - anyone else?

I have a pension with work DH doesnt as he is self employed. We probably be able to invest in a second property within the next 12 months. HE currently doesnt have any pension scheme assets at present. How do we get around it?

He can set up a personal pension or SIPPS and start paying contributions to that. The maximum amount of contribution you can pay is dependant on your age and earnings.

Look at this - there's a link to a property guide at the bottom. (I can't open it.)