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What to do about our pensions?!!

mark2012
by mark2012 12 August 2012  |  Comments 2 comments  |  Love Love  0 loves

My wife and I are currently (and exceedingly belatedly) coming to terms with the issue of our pensions. I'd very much appreciate your collective advice on what might be best for us.

First of all, my wife is soon to be 60 and I am 47. We have a joint mortgage of around £75k on a property that is of difficult-to-assess current value (it's a two-bedroom end-of-terrace cottage, valued in 2006 (i.e.before the crash) at around £105,000). We have no other debts whatsoever.

Secondly, my wife has three pension pots, jointly worth around £65,000. I have two minor pension pots - which I have not contributed to for at least 15 years - worth perhaps 10,000 or so.

Thirdly, I believe we have to make the decision about my wife's pension in the next few weeks. However, given the scandals in the finance industry as a whole, I do not feel I can trust any IFA to give me totally unbiased advice. And I certainly don't trust my bank to provide unbiased advice either. Perhaps this antipathy is misplaced. But in any event, I'd like to garner a series of opinions from a variety of sources. At least then I might learn to ask the right questions when it comes to finally deciding what to do!

All help most gratefully received...!

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Comments (2)

  • CaptainFlak
    Love rating 32
    CaptainFlak posted

    Generally the answers you get will say more information with regard to income and savings would be needed and also that it's not easy to give definite advice regarding pensions on this kind of medium. All I will say is that if an annuity is involved make sure you shop around!

    Posted on 12 August 2012 | Love Love  0 loves Report
  • MikeGG1
    Love rating 879
    MikeGG1 posted

    If your wife is not yet 60, her State Pension Date will be after the age of 60. Is she continuing to work after that date as you will still be well short of your State Pension Age? If so, she could defer taking her State Pension until she retires and then receive a higher amount. Has she paid enough contributions for a full State Pension (30 years are needed)? If she is a little short she could top up her contributions.

    Her pensions may have a target Retirement Age but often they don't have to be taken until actual retirement.

    When she does take her pension pots, she could take 25% in cash tax-free and reduce your mortgage. She should be able to combine the various pots and buy an annuity elsewhere. The Sunday newspapers usually give the best annuity providers under varying circumstances. Get quotes from several of the best buys.

    Mike

    Posted on 12 August 2012 | Love Love  0 loves Report

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