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Author Topic: Pension Changes  (Read 76613 times)

OvaSees

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Re: Pension Changes
« Reply #250 on: 25-10-17, 11:08AM »
So you could pay in Tesco pension 7-5% and Tesco will match it. 15 % in total.
Now to get 15% in your private pension you have to put in 15% all by yourself.
True, but that 15% is not tax-deductable, so that's not as big a hit in your pocket (net pay) as you might think. When you factor in the potential and projected long term returns of other schemes when compared to Tesco's, the economics of leaving the company scheme and joining a private one make more sense. Even as a privately operated scheme, Tesco's new one is just not that competitive if you compare the market and take the right long term view of your retirement plans. This is even more true when you consider that by putting people in this new scheme, Tesco shifted the investment risk of the pension funds of that new scheme from itself and onto you.

I came out of it too, and I put in 15% to a private scheme, but based on a comparison of both schemes I will get £1300 per year more in my private scheme than I would if I had stayed in Tesco's scheme at the maximum of 15%, and I could not afford to put more into Tesco's scheme in the form of additional contributions. Yes, my take home pay is now slightly smaller, but that difference is less than what I would have had to put into Tesco's scheme to get that same (higher) pension. In short, I'm slightly worse off now to be much better off in retirement.

Disclaimer: see a good independent pensions advisor, as I did. They explained that due to legislation changes and so many companies changing their schemes to make them more affordable, pensions these days are becoming like utility bills and car insurance - you have to shop around and compare the market, making your own decision based on your own plans and circumstances, there is no longer a 'one size fits all' solution. Too many people show apathy to pensions and tend to forget about them until they matter by which time it is too late. They key point is that it's all about you, your circumstances and your future plans, pensions are as individual as people.
« Last Edit: 25-10-17, 11:11AM by OvaSees »

GreenGrocer

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Re: Pension Changes
« Reply #251 on: 25-10-17, 02:13PM »
 :thumbup:

AlexM

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Re: Pension Changes
« Reply #252 on: 01-11-17, 08:32PM »
Also remember that if you pay into a private scheme you still get the tax relief on it. So if you pay £100 in from your bank account, you get £25 tax relief so it's £125 that goes into your selected fund.

Duff McKagan

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Re: Pension Changes
« Reply #253 on: 23-02-18, 08:13PM »
Forgive me if I’m missing something here but I cannot find anywhere where it says what happens to pension contributions from Tesco if someone leaves the company, not as in retires...as in quits to find another job. I can see that the employee keeps the contributions they made up until the point they leave the company but I can’t see where it definitively says what happens to the money Tesco puts in does the employee get to keep those contributions or not? It seems obvious that they should but I’d like to know for sure. Can anyone answer this please? I put in 6%..I get to keep that..Tesco puts in 6% but is it 100% certain that I’d keep what they had put in up until the point I left the company?

notsofunny

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Re: Pension Changes
« Reply #254 on: 23-02-18, 08:36PM »
If and when you leave you will get a letter to say what you can do with you pension pot, which would be the amount you put in and the amount put in by Tesco ,  From what I remember you will get the choice of keeping it with the Pension company ,or transferring it out to another company , (If you have the old ones then be very carful about moving them out) and remember that your fund will be charged for moving out ,, get in contact with the Pension company , the contact details are on the Yearly statement

ZyDer

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Re: Pension Changes
« Reply #255 on: 24-02-18, 09:48PM »
You can transfer your pot to another provider at any time. ( I have checked this)
You also retain the right to be be in the Tesco scheme. (and this)
So, if you don't like the new Tesco scheme - pay the 7.5% in, let Tesco match it, then transfer the pot to a scheme which you do like, every now and then.
Repeat process till you retire or leave.

notsofunny

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Re: Pension Changes
« Reply #256 on: 25-02-18, 12:37AM »
Sorry Zyder can you explain what you mean by( pay the 7.5% in, let Tesco match it, then transfer the pot to a scheme which you do like, every now and then.
Repeat process till you retire or leave.  ??? , and who told you to do this ?

ZyDer

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Re: Pension Changes
« Reply #257 on: 25-02-18, 11:39AM »
You can choose to pay any amount of your wages into the new Tesco L&G pension scheme.
Tesco will match the first 7.5% you pay in - effectively doubling your money.
If you don't like the new Tesco L&G pension scheme, transfer to a scheme you do like.
Nobody told me to do this, it's just a suggestion for maximising your pension pot in a scheme you like.

Duracell

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Re: Pension Changes
« Reply #258 on: 17-10-18, 11:19AM »
Zyder can you tell me when you do these periodic transfers out is there a charge or cost for doing so?
My Opinion is exactly that, Mine.  Based on my view of what I know , see and what I would do.
"Being a rep doesn't make a person right anymore than not being a rep makes a person wrong " 

Duracell.

sunshineman

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Re: Pension Changes
« Reply #259 on: 17-03-19, 01:49PM »
I have a question. The new pension which came in, in 2015, I have yesterday received my statement. It says that I will receive in five years a lump sum of £1,300, which is when I retire. It then says that I will receive a payment of £111 a year for my pension. I worked out looking at my pot, I would have to live for 35 years to receive all my pot, does this really make sense and can I leave it.

I took a lump sum out of the older pension, and I currently receive £60 a month from that pension. I only took out £7,000.

So, I am wanting to know, if I can take out all the money from both pensions and put it to better use. It seems crazy that I have been paying into the pension for 15 years and all I will have to show for it when I retire is around £69 a month. Like what am I supposed to do with that, and how will it affect my state pension. I would also like to know how much state pension I would receive when I retire in five years.

Global Moderator Comment https://www.gov.uk/check-state-pension

lucgeo

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Re: Pension Changes
« Reply #260 on: 18-03-19, 07:54AM »
When the pension changed I took the whole of the DB pension out and closed it. It was an offer from the pensions, as a "maybe" at that time...after taking advice from another poster on here, I weighed up the options and decided to take the lot out.

Yes I paid a lot of tax for the remaining 25%, but as a part timer, I did get about a 5th back as a rebate at the end of the financial year. It enabled me to upsize my property, whilst remaining mortgage free. It's value has steadily increased, 10% in the last year alone. That's just my story........

Whilst I know it's not an option for everyone, I would bear in mind that on the pittance forecasts for the pension it is insulting, you will pay tax on the pension and it could take you just over the limit for any possible government allowances, when you retire.

I would encourage anyone to take a redundancy protection insurance out, on their mortgage, regardless how secure they think their job is.
Live for today. Learn from yesterday.

sunshineman

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Re: Pension Changes
« Reply #261 on: 17-04-19, 06:24PM »
Hi, not sure if this is off topic or not. I have C O P D, and I took part of my legal and general pension a few years ago as a lump sum. I would like to retire early due to my illness, I have five years until I officially retire and would like to know if I can take the rest of the money from my pension, and if I am allowed to take money from the new pension after the last one closed down.


Expressdude2016

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Re: Pension Changes
« Reply #262 on: 17-04-19, 11:23PM »
As long as you are 55 you can take early retirement with the old pension. The new pension though I think is 60 or 62 as new pensions have to follow government rules. Unlike when the old pension was in the go there is no longer the option of company retiring you early on health grounds and getting pension.

Malridge

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Re: Pension Changes
« Reply #263 on: 18-04-19, 01:25AM »
You can take the new pension at 55, I did it last year.

sunshineman

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Re: Pension Changes
« Reply #264 on: 18-04-19, 11:59AM »
Hi, I already receive money from the pension but it is worthless to be honest. I took around £3,000 out of the pension pot from the old pension and now they pay me £60 per month. The new pension pot I have not touched but I got a letter saying when I retire I will be given a lump sum of £3,000 and then paid £160 per year. It worked out how much was in the pension pot, and for me to receive every penny of the pension pot then I would have to live until I was around 105 years of age.

What I am trying to find out is, if I can just take all the money from both pensions and either invest it, or put it in the bank so I can retire early. Due to my C O P D I am not sure how much longer I will be able to work for as the air conditioning in Tesco is really affecting my C O P D.

Charlie Harper

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Re: Pension Changes
« Reply #265 on: 18-04-19, 01:23PM »
I can't say I'm 100% sure about the old pension, but the new one you most certainly can. Pensions are very flexible these days. Once you're past the age at which you can access your money, then you're pretty much free to do with it as you wish. Do be reminded however that after you've taken your 25% tax free amount, that the remainder is liable to tax. (If it takes you over your yearly tax free allowance of course).

sunshineman

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Re: Pension Changes
« Reply #266 on: 25-04-19, 01:34AM »
The old pension before they closed it, I took 25% out tax free. Now, today I was reading online that you can dip into your pension pot three times, is this true and if I take another 25% do I have to pay tax on it.

sunshineman

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Re: Pension Changes
« Reply #267 on: 25-04-19, 01:56PM »
Can someone please send me a contact number for Tesco smart pension or email address which closed in 2015. I have rang one number and it took me an hour to get through to the right person but then I forgot to ask a question. according to what I have been told, due to taking 25% as a lump sum six years ago, my pension is in a lifetime pension scheme where I currently receive around £60 per month which is rubbish after 14 years with Tesco. They have told me I cannot take anything out of the pension pot or transfer it.

Baker1961

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Re: Pension Changes
« Reply #268 on: 25-04-19, 04:37PM »
Here is what I have done this year, I asked for a transfer value of all my pensions, if the amount on each pension is over a set amount you have to seek financial advice.

My old tesco pension is a set amount for life with death and spouse benefits, as I am in good health and have ten years to retirement it makes sense to leave it where it is.  If my health deteriorates and my e c expected life shortens I would transfer out in to a d c scheme.

I did transfer an old pension in to the new tesco scheme and it made in a year in interest 1800, I also changed from the default scheme to a draw down scheme on the legal and general account and I also upped my 7% and tesco match it on salary sacrifice.  I also had a interview with pension wise and checked to see if me and my wife get full state pension you need 35 years of nics, you can also get a free pension check with a financial adviser who will only charge if you take their advice, also check the .gov site for any old pensions you might have lost/forgotten, I found one that turned out to be worth a lot of money.