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rob3770 3:35 Tue Mar 21
Parents Pension Pot
Hi, Parents are coming up to retirement age and hold half a dozen pensions between them.

Can anyone recommend an adviser to put the lot into plain English and how to best live off them?

Cheers

Replies - Newest Posts First (Show In Chronological Order)

Willtell 6:46 Tue Mar 21
Re: Parents Pension Pot
If you have a £1m+ pot all the talk is great but I suspect in this case it is not anywhere near that. It all depends on what you want. When i retired i wanted to be comfortable and live off it.

My Mother-in-law saved for years sticking money into her pension on a weekly basis when the man form the Pru came around. Her sister was the opposite. Never saved a penny. They both get the same income.

One owns her own house and is self-sufficient. The other gets all sorts of benefits that brings her up to a similar level and lives in a council house...

There's a moral in there for the type of person you want to be and the attitude needed to be adopted to achieve that. Spend or eek it out...?

whu&eng1 6:32 Tue Mar 21
Re: Parents Pension Pot
As someone suggested earlier.. take the max lump sum and tell them to live their life to the full. My dad retired only 2 years ago having worked in engineering all his life, passing away from cancer at the end of January.

He literally loved and lived his life up until his final moments, and the extra cash on retirement allowed him to do a lot of things from holidays, to just wanting to to take care of his family in the short space of time.

I would truly encourage anyone faced with similar circumstances. My personal attitude towards life is to priorotise accumulating experiences, not wealth.

BRANDED 6:04 Tue Mar 21
Re: Parents Pension Pot

LeroysBoots 5:31 Tue Mar 21
Re: Parents Pension Pot

The idea of SAVING is a brilliant one. The idea of having a gilt edged guaranteed final salary pension is orgasmic.
If you are asking for other people to give you advice you need to be sure that those people have 100% of YOUR interest at heart.

In the end you need to make decisions about how you wish to live your life. As the humorous posts pointed out.

Work out what you want to do and then get lots of advice and don't be afraid to walk away from anyone.

weststandboy 5:45 Tue Mar 21
Re: Parents Pension Pot
Take the pension pot and put it with a good financial planner he should be able to find good solid investment package that will grow nicely and be catered towards their attitude to risk.

They might be pleasantly surprised how it will keep on growing

weststandboy 5:45 Tue Mar 21
Re: Parents Pension Pot
Take the pension pot and put it with a good financial planner he should be able to find good solid investment package that will grow nicely and be catered towards their attitude to risk.

They might be pleasantly surprised how it will keep on growing

Bullet 5:37 Tue Mar 21
Re: Parents Pension Pot
You could always tell them to do what my parents did after retiring with a few million and tell them to keep going around the world on expensive cruise ships for the next 20 years until they became too ill to get on or the money runs out.

It was the being waited on hand and foot that was the attraction or so I'm told. They were so well known by the cruise staff that they were greeted with the saying "Hello again Mr & Mrs Riddle still spending the family inheritance?" Ha ha ha, my how they laughed. They don't have a pot to piss in now, let alone a pension pot, but I'm not bitter.

Westside 5:33 Tue Mar 21
Re: Parents Pension Pot
Although fortunately being young enough to be a bit off retirement, I did consolidate all my pension pots (4) into one a couple of years ago.

There are no exit charges for doing this, the value of a pot at any given day, is transferred in full.

I really wouldn't bother considering an annuity, draw down money from the one pot,at a reasonable rate. The advantage is that when you die, the balance forms part of your estate and go to your spouse (or the cat's home). With an annuity, it generally dies (i.e. the insurance company keep it) with you.

Of course you could piss the pot up the wall in a year, but if half sensible you can draw down an amount to live on,so the pot will last your lifetime. Of course that number isn't a certainty.

If you draw all the money out of the pot to invest yourself, or spend in one go, this will attract a hefty tax bill, even after drawing down 25% tax free.

LeroysBoots 5:31 Tue Mar 21
Re: Parents Pension Pot
BRANDED 4:23 Tue Mar 21
Re: Parents Pension Pot

My pot grew 27% last year, I'm VERY happy

Willtell 5:19 Tue Mar 21
Re: Parents Pension Pot
rob,
It isn't difficult these days. The first thing to realise is that if they have 6 pensions it means they probably started some schemes and then froze them by not paying any more into them.

They could be worth lots or lots of small sums. All they need to do is write to each one and ask them for valuations and quotes for annuities for them. A broker cannot do too much that a wise consumer couldn't do for themselves if they are used to dealing with business matters.

You can get comparative quotes from a list from Money Advice Service which I am sure is a government sponsored site and has a lot of simple advice and a pension calculator - https://www.moneyadviceservice.org.uk/en/tools/pension-calculator

Start there.

, 4:54 Tue Mar 21
Re: Parents Pension Pot
The thing about private pensions and their pots is you must realise that everyone you seek help from will do so with the intention of making money out of you.

When you sit down in front of an expert remember to ask him what he is doing for his own personal pension provisions.

alan devonshire 4:54 Tue Mar 21
Re: Parents Pension Pot
What Branded said

BRANDED 4:23 Tue Mar 21
Re: Parents Pension Pot
I wouldn't trust anyone in pensions as far as I could throw them.

I'd take the whole lot out and invest it wisely.

LeroysBoots 4:21 Tue Mar 21
Re: Parents Pension Pot
Generally re Pensions look no further than Fidelity and Old Mutual...my pots have grown amazingly well with these 2

riosleftsock 4:17 Tue Mar 21
Re: Parents Pension Pot
If they are thinking of buying annuities, tell them to start smoking and drinking heavily and declare that they have done this all their life.

The difference in income levels is amazing with the right companies.

COOL HAND LUKE 4:14 Tue Mar 21
Re: Parents Pension Pot
Standard Life are excellent at amalgamation of pension pots, particularly so if you already have one of the pots with them, however small.

They have several 'lifestyle' funds which take some of the legwork out of managing the wind down to withdrawal / payment (or you can manage this aspect yourself), and you can have tracker funds rather than 'managed' funds (unless you get a lucky fund manager, having managed funds is usually a waste of money).

The fees are reasonable, and you can get reductions in fees on pots over £25,000, which is a very low threshold these days.

They will expect you to have taken advice and will challenge you quite firmly on that... the easiest way forward (as long as you ARE happy you are doing it right) is to say you've had your telecon with Pension Wise (government's own advisory body).
https://www.pensionwise.gov.uk/

It is rarely wise to transfer or cash in a Defined Benefit pension; usually this is done with Defined Contribution pensions. You may be safer to buy an annuity with the DB pension to cover your arse, then amalgamate the DC pensions for better access and to allow them to be inherited via your will on your death.

If you are unclear on DB and DC and the differences, you shouldn't be dealing with it yourself anyway...

RM10 4:04 Tue Mar 21
Re: Parents Pension Pot
tell them to take the highest lump sum, there is no telling how long you will live and you dont spend as much when you get older.

overbyyer 3:44 Tue Mar 21
Re: Parents Pension Pot
Tell them to go on plenty of ski holidays.


Spending Kid's Inheritance.

betrayedby the board 3:41 Tue Mar 21
Re: Parents Pension Pot
Hargreaves Lansdown are good and should be able to consolidate the lot and recommend how best to get an income from them

On The Ball 3:38 Tue Mar 21
Re: Parents Pension Pot
Try somehow breaking your spine - they'll have to take you in and then you can live off them again.

Or borrow large amounts of money from them for "an investment" and periodically give them some "interest", whilst enjoying the spoils of your efforts (Google 'Ponzi scheme').

Trevor B 3:38 Tue Mar 21
Re: Parents Pension Pot
Yep, me. Tell them to enjoy their money, spend it, have fun, after all they spent years putting money into many plans to pay for their old age. Whatever they do DO NOT give any of it to sponging kids and grandkids.

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