Do you have questions about your pensions? Ask PensionBee’s finance and investment expert Becky O’Connor - £200 voucher to be won

[CeriMumsnet]

Pensions are invaluable for our future financial stability and wellbeing, however it can be hard to feel on top of them or know how best to manage them. To help you out, PensionBee has invited their expert to answer your questions around pensions and saving for the future.

• Everyone who shares a question on the thread below will be entered into a prize draw.
• One lucky Mumsnet user will win a £200 voucher
• Becky will be back online in a few weeks to answer a selection of your questions.

About the expert
Becky O’Connor joined PensionBee in January 2023 as Director of Public Affairs. She’s a Personal Finance and Investment Expert and award-winning Journalist with two decades of experience in journalism and communications. Prior to joining PensionBee, Becky was Head of Pensions at Interactive Investor, and previously acted as a spokesperson for Royal London, the mutual insurer. Becky’s also the Co-Founder of the ethical personal finance website, Good With Money; the Author of a book on sustainable investment, The ESG Investing Handbook, Chair of the Ethical Advisory Committee for Castlefield Investment Management and a fellow of the Royal Society of Arts.

Here’s what PensionBee has to say
‘We are a leading online pension provider with a mission to make pensions simple, so that everyone can look forward to a happy retirement. We’ve helped thousands of savers feel pension confident by enabling them to combine, contribute and withdraw from their pension, all in one place.’

Thanks and good luck with the prize draw
MNHQ

Insight Terms and Conditions apply

Is this still happening? Been interested in some of the answers…

Yes - following for responses too

This doesn't create a great impression of PensionBee...

I’m almost tempted to answer the thread myself. At least as an IFA I’d be 1) Qualified 2) Not representing a vested interest

@Sunsetintheeast I for one, would be very interested to hear your views. There's so many interesting questions on the thread.

I expect I might get deleted if I did a wholesale takeover!… if Becky doesn’t come back I’d be happy to get MN permission. There is so much misunderstanding and confusion about pensions, this shouldn’t be ignored.

@Sunsetintheeast Perfect, thank you!

Not an IFA but a pension geek and a good understanding - it's frustrating too see these questions going unanswered! Some are pretty straightforward.

Yes, very happy to let @Sunsetintheeast take over!

Me too!

or a new thread with an idiots guide to pensions.

The whole thing just seems so complicated.

I watched Martin Lewis’ explaining it and understood a little more. But not confidently; which is a worry as
I’m approaching an age where I will have to start making decisions.

Maybe someone in the expert’s life was ill, or had an emergency, happy to give the benefit of the doubt.

As long as the person does come back of course!

Alert alert ‼️ sponsored content

Well, thanks for mumsplaining that for us thickos.

@Sunsetintheeast happy for you to takeover from Pension Bee. The more I read about pensions, the more confused I get. There are just too many ifs or buts.

That’s just rude - some of us want a chat forum not ad forum. Pensions are the beginning of a slide toward other bad ads like equity release and betting

Placemarking as im just thinking about my pensions at the moment.

Think MN is just low on the priority list. Probably just over committed themselves. If you google Beckys name over the last week they are writing opinion pieces and giving quotes all over the place - ironically one quote where they are disappointed by delays (in a government pension dashboard).

Not a good look to commit and then not deliver on a promise especially in an industry that is reliant on trust, confidence, will have an intimate relationship with your finances and at a time many are looking into their pensions after the recent Martin Lewis show. As someone in their 50s looking to retire in the next 5 years, combine pensions and who can give me independent advice it has left me with a negative impression.

If anyone starts a pension advice thread that will help answer these questions please link!

Look at Google Reviews of Pension Bee.

Hi @CookieDoughKid. Yes. The Pensions and Lifetime Savings Association thinks a couple needs £34,000 between them a year for a moderate lifestyle in retirement, assuming housing costs are paid off. Assuming you both get full State Pension, that leaves roughly £14,000 on top a year that you will need between you. A combined pension pot of £250,000, at current annuity rates, would be enough to provide an annual income of around £16,000 to £17,000.

Hi @FurierTransform. Not really! That's usually a pretty good option. You generally want a higher proportion of equities (company shares) if you are three decades away from retirement, so it is normally recommended to avoid the 'cautious' options your pension provider might present you with, as you limit your potential for returns. If you are very bothered about investing sustainably, this kind of tracker might not sit well. But there are other relatively low-priced sustainable global equity funds, too.

Hi @FrownedUpon. It's personal choice but it's much easier to keep track of pensions in one place and it can also work out cheaper, if you are paying over the odds for old workplace schemes. Depending on where you consolidate to, you can also have more control over where your pension is invested. Keeping up to three 'small pots' separate can be beneficial if you still intend to contribute to a pension in the future, as up to £10,000 in up to three pots can be withdrawn without triggering the £4k Money Purchase Annual Allowance when you reach minimum pension age.

Hi @tonybennscat. Yes, from the age of 55 it should be possible for you to draw down from your defined contribution pot as and when you want, either ad hoc or monthly regular lump sums. Pension income is taxed the same as your income when you are working, so up to your personal allowance is tax-free and thereafter, you are taxed at your marginal rate. You can withdraw up to 25% of your total pension pot as a tax-free lump sum, too. The most tax-efficient way to draw your income will depend on how much your DB schemes are worth and how much you are planning to take from them annually. But bear in mind the risk that if you take a lot in one year, this could push you into a higher tax bracket for that year, whereas if you spread out your pension income, you may be able to keep below thresholds. If you are over 50, you can book a Pension Wise appointment for free guidance on the best plan for your particular circumstances. www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

Hi @Chewbecca. You don't generally incur admin fees for moving a pension to another provider unless there are exit fees associated with your particular pension. It's best to check. From the way you have phrased your description of your pension though (as an amount of income per year), it sounds like the pension is defined benefit, so this income could be guaranteed and the pension might also come with other benefits. This means even if it is just a few hundred pounds a year, it might be best to leave it where it is. In fact it might not be possible to move it without advice, anyway.

Hi @Rummikub. Depending on your scheme and your age it might be possible for you to buy additional pension contributions up to a certain amount. Check with your employer HR department and/ or your pension provider (you should find details on your annual benefit statement). With another 12 years before you retire, this could be well worth doing. It could add thousands of pounds to your eventual pot. You could also consider opening a personal pension on top. It's great you are looking into this now!

Hi @mrsbyers. Yes, if you are trying to simplify your finances before you retire at 55 (lucky you!) then consolidating can make managing your pension much easier, particularly having just one source of income rather than many. However it does depend on what type of old pensions you have. Defined benefit can be more complicated to consolidate and it's often not the right thing to do, whereas defined contribution schemes can be much easier to transfer. If you are over 50, remember to speak to Pension Wise, the free government pension guidance service.