Very Little Knowledge of Pensions

[bathingape]

Hi - forgive the lack of knowledge I have on pensions. Until recently I was in a permanent role where I paid into a pension. Since leaving, I have received a letter stating that because I was there for less than 2 years, I have lost my rights to receive pension benefits however I can transfer out my retirement account to a personal pension or SIPP. I have a week left to do this otherwise I lose my pension(!)

I am now contracting and a director of my Ltd company.

I am not very clued up on pensions so I'm not sure who to turn to? Does anyone have any recommendations on any SIPP's or pension plans? I am going to get on the blower to an IFA although no idea what to look out for! I will also speak to the accountant first thing.

[northernladuk]

Why didn't you try speak to both your IFA AND your accountant first?

All the posts on pensions from the forums here..

https://www.google.co.uk/search?q=pe...pvd=1&ie=UTF-8

A Google Search on contractor pensions here..

https://www.google.co.uk/search?q=co...pvd=1&ie=UTF-8

A new article on your exact situation here

http://www.theguardian.com/money/201...h-in-two-years

A Google Search on being in pensions less than two years is here..

https://www.google.co.uk/search?q=le...pvd=1&ie=UTF-8

Not being clued up is not a reason to be lazy and put no effort in to researching something. You really need to do better than this.

[bathingape]

Why didn't you try speak to both your IFA AND your accountant first?

All the posts on pensions from the forums here..

https://www.google.co.uk/search?q=pe...pvd=1&ie=UTF-8

A Google Search on contractor pensions here..

https://www.google.co.uk/search?q=co...pvd=1&ie=UTF-8

A new article on your exact situation here

Workers banned from pension cash-in if they leave after less than two years | Money | The Guardian

A Google Search on being in pensions less than two years is here..

https://www.google.co.uk/search?q=le...pvd=1&ie=UTF-8

Not being clued up is not a reason to be lazy and put no effort in to researching something. You really need to do better than this.

thanks mate - Yep, my ignorance of pensions has led me to this situation. I'm usually a bit OCD with every other aspect of my business however pension schmes etc is something that I may take a while getting used to. Thanks for your assistance though. I did come across some of the articles that you pointed me to last night before posting this.

I have already spoken to my accountant this morning and he advises to go straight to an IFA as he too isn't involved much in this.

[northernladuk]

I don't think you can go too far wrong having a chat to Freelancer Financials who do pensions as well. They may give a better insight how it affects you as a contractor. Am sure most other decent IFAs do as well but might be worth a chat.
http://www.freelancerfinancials.uk.c...ated-services/

[bathingape]

I don't think you can go too far wrong having a chat to Freelancer Financials who do pensions as well. They may give a better insight how it affects you as a contractor. Am sure most other decent IFAs do as well but might be worth a chat.
http://www.freelancerfinancials.uk.c...ated-services/

Cheers bud, Will defo have a look at that shortly. My head is muddled this morning after all the reading up on this. Will take a step back and look with a fresh pair of eyes this afternoon

[Contreras]

Fwiw, I do not recall this specific question being asked here before ever.

It seems to me that you should find a low cost* execution only SIPP provider where the lump sum from your current scheme can sit uninvested (i.e. remain as cash) until you've had a chance to research the options. Then at your leisure you could choose a tracker/fund/etf or transfer to a managed scheme. Tbh, I'm not sure how practical this is and it would depend on the sum involved.

* Low cost meaning any fees/charges for simply holding cash and (importantly for your situation) zero or low exit fees for transferring to another provider if that ultimately is your decision.

The IFA if they are any good should advise something similar I would hope, but it's possible they would rather sell you in to a scheme forcing you to make a rushed decision on investments. Also it may be worth getting advice wrt the ex-employer pension, your rights and the action they are taking. This is where the IFA could help by liaising for you.

Re. SIPP providers, not recommendations but for example have a look at YouInvest, TD Direct, Hargreaves Lansdown. Also give them a call to ask how long to complete a transfer - I doubt very much it can be done in a week - they may have some useful advice on the technicalities.

There are other informed forums that may be better for you to research/ask, seeing as it's not really contractor specific (unless I misunderstood terribly) -
TMF: Pensions - Self-Invested - SIPPs,
TMF: Pensions - Practical Problems,
TMF: Brokers and Share Dealing.

[bathingape]

Thanks - Just had a quick chat with the pension company and they said that i'll have another couple months before they take action. So that's bought me a little bit of time.

[pmasoft]

Thanks - Just had a quick chat with the pension company and they said that i'll have another couple months before they take action. So that's bought me a little bit of time.

I can recommend Informed Choice in Surrey. They are 100% Kosher and put you before their bottom line. Google them and see what you think.