Pension stuff, how's it all looking ? HAve you prepared ?

[JackyJoll]

I can’t tell you anything really but I’m not sorry I put mine in an all equities Stocks & Shares ISA.

At least not sorry yet anyway!

From May 2023 to today:

[Sunny]

Mine is still doing incredibly well with provider and the fact work pay in a big chunk really helps.

I'm just debating in 12 months time how much of it to take out of the 25% tax free and what to do with it at the time it's not needed etc... In truth most of what i take out will be spent at the time... but i think the rest will go in an ISA unless anyone can tell me otherwise.

The pot after will still be over £500k so i'm not too worried about some spending

Git. Mine's half that. I'm going to be working till I'm 80

[Count Steer]

I can't remember if I've posted this before but, for comparison, a £300k pot on 4% pa drawdown is equivalent to the UK state pension. (If an annuity, at current-ish rates, the pot required is less, but, obvs, if you cark it on day 2 it disappears from your inheritables apart from any lump sum payout arrangement and I assume that if you wanted it to cover the period up to a second death ie pay out half to a partner the pot would need to be bigger).

https://www.fidelity.co.uk/markets-insi ... e-pension/

[Dodgy69]

I've been drawing off mine for 6 months, there's more in now than when I started. Could go bang anytime though.

Well this is true of course... but in reality then i'd just work a little longer

Remind me again, this word 'work' you use.....

[weeksy]

I've been drawing off mine for 6 months, there's more in now than when I started. Could go bang anytime though.

Well this is true of course... but in reality then i'd just work a little longer

Remind me again, this word 'work' you use.....

It's a vague one to me

[JackyJoll]

I was in full time employment for 45 years and the word “work” is very much open to interpretation.

[Count Steer]

I thought this article provided some food for thought. Pretty much echoes my view on the current state of the USA stock market and the AI bubble. If someone sticks a pin them....

https://www.bbc.co.uk/news/articles/cg5ej03p604o

If all else fails we can ask ChatGPT for advice.

https://www.fool.co.uk/2025/10/05/i-ask ... s%E2%80%9D.

[ZRX61]

Momentary panic this morning owing to a software update/glitch on Vanguard that showed all my $$ had gone from a plus balance to a minus balance.

All good now....

[ZRX61]

Sold a few shares* this morning for $161.08, bought them two years ago for $98... Not a bad ROI

*25 of them

[Dodgy69]

Received some pension options this week from a company I worked for many years ago for about 6 years. My contributions to this pension was about 6k altogether. Late 80s.

Option 1 is an annual pension of £2822.56
Option 2 is an annual pension of £2075.82 + lump sum of £13833. 00
Option 3 is a transfer value of £55500.00 and put it in my other pot.

Now, we're not talking massive numbers here, but 1 and 2 are guaranteed for life with annual increases in line with whatever. Option 3 goes in the pot and is at risk of the usual market volatility.

Not wanting offical advice here obviously, but which would you choose if it was you, no lump sum required.

[Sunny]

Received some pension options this week from a company I worked for many years ago for about 6 years. My contributions to this pension was about 6k altogether. Late 80s.

Option 1 is an annual pension of £2822.56
Option 2 is an annual pension of £2075.82 + lump sum of £13833. 00
Option 3 is a transfer value of £55500.00 and put it in my other pot.

Now, we're not talking massive numbers here, but 1 and 2 are guaranteed for life with annual increases in line with whatever. Option 3 goes in the pot and is at risk of the usual market volatility.

Not wanting offical advice here obviously, but which would you choose if it was you, no lump sum required.

I'd take option 1 The guarantee for life swings it.

[Count Steer]

What I'd do now and what I would have done at 65 are rather different...probably. (Chances are I'd have taken the annual payment then and the lump now. BUT given my view that the markets are going to completely stoof in the not too distant future - and take a long time to recover - I'm still drawn to the annual £2800).

[weeksy]

Received some pension options this week from a company I worked for many years ago for about 6 years. My contributions to this pension was about 6k altogether. Late 80s.

Option 1 is an annual pension of £2822.56
Option 2 is an annual pension of £2075.82 + lump sum of £13833. 00
Option 3 is a transfer value of £55500.00 and put it in my other pot.

Now, we're not talking massive numbers here, but 1 and 2 are guaranteed for life with annual increases in line with whatever. Option 3 goes in the pot and is at risk of the usual market volatility.

Not wanting offical advice here obviously, but which would you choose if it was you, no lump sum required.

Sounds like new bike day

[Yorick]

Received some pension options this week from a company I worked for many years ago for about 6 years. My contributions to this pension was about 6k altogether. Late 80s.

Option 1 is an annual pension of £2822.56
Option 2 is an annual pension of £2075.82 + lump sum of £13833. 00
Option 3 is a transfer value of £55500.00 and put it in my other pot.

Now, we're not talking massive numbers here, but 1 and 2 are guaranteed for life with annual increases in line with whatever. Option 3 goes in the pot and is at risk of the usual market volatility.

Not wanting offical advice here obviously, but which would you choose if it was you, no lump sum required.

Draw out and stick in a 5 year ISA at 4.53%. That'll bring in £2,510 a year. A bit less, but it's tax free and you still have the £55,500 safe

Or stick it in a Stocks n Shares ISA. Most average 8 - 10% appreciation. So about £4,500 a year profit. Tax free and still have the big pot.

Annuities are very poor. The company has your money and they give you part of the profit they make on it.
You may as well make all the profit and keep the dosh.

[Taipan]

I know nothing about investments, how safe are these stocks and shares ISAs?

[Yorick]

I know nothing about investments, how safe are these stocks and shares ISAs?

Historically speaking, Stocks and Shares ISAs perform very well. For example, in the past 10 years, the average annual rate of return for Stocks and Shares ISA has been 9.64%.

What is the typical return on a Stocks and Shares ISA?

The typical average Stocks and Shares ISA return is 9.64%, but 2021/22 saw an average return of 6.92%.



From here..

https://blog.moneyfarm.com/en/saving-an ... %206.92%25.

[gremlin]

I know nothing about investments, how safe are these stocks and shares ISAs?

The value can yo-yo, so if you worry about seeing the value of your portfolio going down then maybe not for you, but invariably there have been few 5-year periods post-war where cash has outperformed the stock market. Also, if think you may need quick access to these funds then doing so during a downturn could cost you money, so best to leave them as a last resort and have alternative investments you can liquidate.

For a very simple way to invest, look at Nutmeg https://www.nutmeg.com/ . Piece of piss to set up, the GUI is dead simple to use. You can set up different 'pots' with different risk profiles to spread your risk.

[Taipan]

I know nothing about investments, how safe are these stocks and shares ISAs?

The value can yo-yo, so if you worry about seeing the value of your portfolio going down then maybe not for you, but invariably there have been few 5-year periods post-war where cash has outperformed the stock market. Also, if think you may need quick access to these funds then doing so during a downturn could cost you money, so best to leave them as a last resort and have alternative investments you can liquidate.

For a very simple way to invest, look at Nutmeg https://www.nutmeg.com/ . Piece of piss to set up, the GUI is dead simple to use. You can set up different 'pots' with different risk profiles to spread your risk.

Nice one, thank you.

[gremlin]

I know nothing about investments, how safe are these stocks and shares ISAs?

The value can yo-yo, so if you worry about seeing the value of your portfolio going down then maybe not for you, but invariably there have been few 5-year periods post-war where cash has outperformed the stock market. Also, if think you may need quick access to these funds then doing so during a downturn could cost you money, so best to leave them as a last resort and have alternative investments you can liquidate.

For a very simple way to invest, look at Nutmeg https://www.nutmeg.com/ . Piece of piss to set up, the GUI is dead simple to use. You can set up different 'pots' with different risk profiles to spread your risk.

Nice one, thank you.

Just as an indicator, and to prove I put my money where my mouth is, I have two normal savings pots and the remnants of a pension in a pension pot (i.e. subject to rules, etc). One is saving a bit of spends for my upcoming holibobs and that's up 8.28% since July. The other I chucked £500 in a couple of years ago to get the free £50 John Lewis vouchers which is up 30.89% and my pension which has been in since May is up 14.79%.

If you know somebody with a Nutmeg account they can recommend you and if you deposit a monkey they get £100 Amazon vouchers. If you open a pot, recommend the missus, she can recommend the kids, etc. Worth doing.

(The holiday savings I've chucked in three lots of £500 over that period. It's up £78 which isn't life changing, but the way I see it, it's better in my pocket than somebody else's and if it buys me a few more beers in the sun then... )

[Dodgy69]

I don't really want any new investment accounts. I already have a diversified portfolio that can yo - yo however, doing very well as we speak, as they all are. I have fees to pay on this.

Its either add to this or take as a small annual pension. It'd pay for bike tax and fuel kind of thinking. Also the tranfer value has a 25% tax free, but the 75% is taxable.

Also, some advisors don't recommend taking the tranfer as the annual pension is a final salary and as you know, comes with guarantees and increases slightly each april.

However, in my death , this small pension is reduced even more for spouse, but with the transfer into the pot, Mrs D would get everything.