Questions and answers

Is there a benefit to combining pensions?

Is there a benefit to combining pensions?

The biggest advantage of merging your pensions together is that you have everything in one place. This makes them easier to manage and reduces the likelihood that some of your savings will go missing. The ABI says they get mislaid because people fail to tell their pension providers when they move house.

What are preserved pension benefits?

A preserved pension is simply a benefit you have earned by virtue of reckonable employment, but which is not paid to you until you reach an age at which the scheme rules allow you to draw it. Until it can be drawn, it is held on your behalf and the value uplifted each year in line with CPI.

When can I take pension benefits?

When you can take money from your pension pot will depend on your pension scheme’s rules, but it’s usually after you’re 55. You may be able to take money out before this age if either: you’re retiring early because of ill health.

Is PensionBee a good idea?

If you want to purchase an annuity or transfer your pension pot to another pension provider in order to access full drawdown then you are free to do so. So PensionBee is still best suited to those still growing their pension pot rather than those wanting to take an income from it.

What is a preserved benefit?

Page reading time: 1 minute. A super benefit that remains in a super fund until the member reaches preservation age. The age at which you can access your super. This is between 55 and 60, depending on when you were born.

What is preserved pension age?

age 60
(Preserved Pension age is, in general, age 60 in the case of a person whose employment commenced before 1 April 2004 and who is not a new entrant as defined in the Public Service Superannuation (Miscellaneous Provisions), Act 2004, OR age 65 in the case of a person who is a new entrant under that Act.).

How long does a pension last for?

Pension payments are made for the rest of your life, no matter how long you live, and can possibly continue after death with your spouse.

How much will I lose if I take my pension at 55?

You’ll get the first 25% as a tax-free lump sum, but you’ll need to pay tax on the remaining 75%. The remaining 75% will contribute to your annual income and could move you into the upper income tax band.