Ask MetaFilter questions tagged with Pension

UK Pension with Worldwide Index Funds

lilyflower — Wed, 26 Aug 2009 04:10:00 -0800

UK Pension Filter: Is there a pension out there which will allow me to invest in the SSE Index, BSE Index and the Nasdaq/Dow Jones/S&P500 indexes? I want to move my pension away from one which is based on a fund managed by a company which charges me over 1% a year.

I would like to have a pension with minimum fees (such as a SIPP) which allows me to move my pension across from my previous provider. I would then like to buy Index Funds such as the SSE, BSE and NASDAQ/Dow Jones/S&P500.

I do not intend to pay any more into the pension for the foreseeable future, so monthly paying in fees do not concern me at this time.

I have looked at the Hargreaves Lansdown Vantage SIPP but they only offer stocks from the UK or USA. Does anyone know of a UK based pension which allows purchase of worldwide stocks through a SIPP with low fees?

I would also like the pension to allow me to start withdrawing it from the age of 55 if at all possible.

Further information: The pension is currently worth approx £15k and no payments have been made into it in the past financial year.

How can I get at my UK pension now that I'm leaving the country?

cubedweller — Mon, 13 Jul 2009 08:40:48 -0800

I moved to the UK in January of 2008 from the US. I've been paying into a pension since I started and there's now £10,000 in there. I (foolishly) assumed that it was like a 401k and now that I'm leaving the UK, I could take the money out. Wrong. Apparently I can't touch it until I'm 55. Please tell me that I haven't pissed away £10k and there's some way to get this money.

When were women Colonels first upgraded in rank upon retirement?

StickyCarpet — Tue, 28 Apr 2009 23:11:21 -0800

Military retirement policy: When did the US Army reverse it's policy of not upgrading women who served actively as Colonels to Brigadier Generals upon retirement? (They have always have done so for men). I know that the first woman General was 1971, but women were not automatically bumped up in rank at that time. I'm asking because my Aunt served as a Colonel, wasn't bumped up, was kind of pissed when the rules changed sometime after she retired. She's still alive, and I'm wondering if I can initiate an appeal to get her pay grade updated.

VISA or pension?

An Infinity Of Monkeys — Mon, 15 Dec 2008 13:00:44 -0800

$10,000 available to borrow from a pension plan, and $10,000 in credit card debt. With the economy tanking and the pension plan currently losing $5-600 per month instead of increasing, is it a wise move to take the loan from the pension plan, pay off the credit cards, and pay the pension plan back with interest each month?

Still 20-25 years away from retirement, if that makes a difference.

Can I combine my pensions transatlantically?

Joh — Wed, 17 Sep 2008 21:38:19 -0800

Can I get money invested in a UK private pension transferred into my US 401K? I am a UK citizen living in the US (and plan to stay here, no interest in moving back to the UK). I have a small amount of money in a private pension in the UK, with Norwich Union. I have not made any contributions to it for nearly ten years now. The money is just sitting there, essentially being useless, since its too small an amount to actually retire on. I would love to get at the money and roll it into my 401K. I did call Norwich Union, but they were pretty unhelpful and evasive. They said I could only transfer it to another pension that is on their approved list (no idea where to find that list). I did make it very clear that I live in the US now, and I wanted to get it into a US pension, and they agreed to send me some forms to start the process. The forms arrived today, and are for transferring it to a UK pension. Before I call back and try again, I want to know if this is even possible, if anyone else has done it, or if I should just give up and leave the money sitting there. Hoping some UK expats have tried this and can offer advice.

Disclaiming money, not responsibility

Clyde Mnestra — Wed, 17 Sep 2008 20:59:08 -0800

I need to choose which shells (account types) under which to put the coins (inherited and disclaimed assets), and I am worried that if I choose the wrong one, I will lift it after shuffling to find nothing underneath. When one parent passed away, her 403b funds went to surviving spouse, who disclaimed a portion to me. The investment company has been advising me on my options for the survivor spouse's share and mine. The conversations have raised a few questions on which some of you may have vast knowledge.

1. Supposedly some or all of the money transferred to spouse cannot be moved from the fund company, because under some 2007 law, the original institution (the employer) could have elected to make it portable but did not. Does this ring true? Is there a more accurate way to put this?

2. Supposedly it makes a great deal of difference which type of legal instrument the spouse's money is put into. If it is put into a "SIP" (savings and investment plan? is that right?) it has spouse's life expectancy associated with it and always will, even after spouse's own death; that is bad news for me, because it will mean the money will be exposed to taxes sooner. If, on the other, it is put into an IRA, it will not have that problem. Sound plausible? Any sources to confirm this account? Any other advantages of one over the other?

3. Apparently my own options are either an amended SIP or an inherited IRA. To my understanding, neither one has a decided advantage (both use my life expectancy). Are there any tax or other reasons to choose one over the other? Again, am I using the right terms?

Thanks in advance! I know you are not my lawyers or CPAs. My main objective is to find a way to research this and talk about it intelligently, including to advisers.

P.S. Of course the shell may be empty for other reasons, but I am trying not to think about that right now.

Can you share the pension & the taxes?

Anonymous — Mon, 16 Jun 2008 09:25:02 -0800

A father dies. There is a pension and 2 children. Only one person can be named beneficiary. How do you handle the taxes? Here's the scenerio: (sorry for the length)
Brother and Sister's parents divorced when they were young and they grew up without the father. Much later in life they were told their father was very ill and they went to visit him. During this visit the father shared his pension information with them and went through the paperwork with them. Only one name could be listed as beneficiary and the father chose the eldest child making it clear the money was to be divided between the 2 children. Payments are just under $400 every month for 10 years after the fathers death. The father died less than 60 days later.

About 6 months after the fathers death the youngest child asked the sibling if they had started receiving payments yet. Yes. Older sibling explained the tax liabilities would all fall on the beneficiary even if it was shared. Older sibling expected to get a 1099 for the full amount. Younger sibling did not have any type of response to this and older sibling has now been receiving payments for almost 2 years.

How can this work out where nobody gets screwed? I know...lawyer, lawyer...accountant, accountant. Has anybody experienced anything like this? This is occuring over 3 states...father's employer, brother and sister each in a different state. Younger sibling does not want this to become an issue and will not allow family fights over money. Younger sibling is willing to just drop it, but could also really use the money.
I would appreciate any advice, thoughts or suggestions. You can email me at pensionquestion@gmail.com
Thanks!

A sensible saving plan for an uncertain international future?

Cantdosleepy — Thu, 15 May 2008 07:10:35 -0800

PersonalFinanceFilter: 25 year old looking to start making payments into something pensionesque, but with an international bent. Any suggestions? I think it's time to start a pension (overdue, probably). I am British but have a Significant Other who has ties to three other countries, and feeling not a massive attachment to the UK, there's a reasonable chance that I won't be seeing out my days here.

I earn about 25k a year before taxes. I'm living in London so there's not a massive amount left at the end of the month, but I'd like to start putting a little something by.

So what do people advise? Would a regular British pension with a reputable company (Scottish Widows &c) be a good bet if I plan on disappearing from these shores in the next five, ten, fifteen, thirty years? Or might a regular/fancy savings account that isn't technically a pension but might operate like one (and still be around in ~50 years) be better for my situation?

FinanceMasters, I humbly beg for advice.

Money stories from international types are also greatly welcome.

Thanks!

Socially Responsible Pension Fund Options?

ericbop — Wed, 09 Apr 2008 13:29:02 -0800

My union offers its members a pension plan that allows its participants to allocate their investments in several types of funds (large cap, small cap, money market, etc). How can I convince my association's pension plan fund manager that they can offer a socially responsible fund as an additional option without violating their fiduciary responsibility?

deposit phone home

D-ten — Fri, 08 Feb 2008 16:01:49 -0800

How can I figure out where a deposit in a deceased person's bank account is coming from? I'm working on the estate of a deceased parent. Everything has been going swimmingly until I was canceling a bank account. It was pointed out to me that a regular deposit was being made each month for x amount of dollars and it might be a good idea to find out who was doing it. This was said just as the account was being closed irrevocably.

I was also told the bank could not figure out where the deposit came from beyond what was on the deposit listing. There are three letters... 'RPS' ...and the words 'principal principal' and some numbers.

I hope that eventually some paperwork will come my way that will explain this. Is the bank just avoiding the question? Should I make a stink, give up, hire a detective?

It seems like it would be a pension payment. I don't have any paperwork referring to a pension or RPS in the deceased parent's files.

Thanks for any tips.

We're all getting older...

Solomon — Mon, 04 Feb 2008 02:58:11 -0800

What preparations should I make for getting old? I'm still in my twenties, but I was thinking that I ought to get a pension prepared. Then I got to thinking about dementia, and the anecdotal evidence that suggests that doing crosswords might help stave it off, by keeping the brain active. Then I got to thinking about writing a will and making preparations for paying for a funeral, etc.

What else should I be thinking about preparing/practising/doing now, so that my old age is as good as it can be? I don't want to get to 85, and suddenly think "Damn! I wish I'd done that years ago", because by then it will be too late to start putting money aside for a funeral.

Stake holder pension - £19 interest across a year?

long haired lover from liverpool — Wed, 05 Dec 2007 03:19:33 -0800

Stake Holder Pension (UK): Is £19 interest for a year correct? I've got a Stakeholder pension. I haven't paid anything into it for the last two years because, for various reasons, I've not been earning.

According to my pension statement delivered today, for 2006-07 my pension accumulated £19 on the back of just over £13K invested up until two years ago. If I put it into a savings account I'd get more than that each month!

Is this right? The pension is invested in two property funds. Times might have been hard for UK property this year, but are they that bad?

If I'm getting a raw deal, what do I do about it?

Pension benefits changing, argh!

Marky — Fri, 24 Aug 2007 05:58:24 -0800

They're changing the pension benefits. Can anything be done? Ever since I joined the union, the pension benefits have been the same. The major benefit is, on retirement or leaving the union, you could take a lump sum, or at 55 collect monthly payments. I just got a letter from the union today. It explained that due to an increase of retirees, the lump sum option has been eliminated.

This has completely thrown many of my coworkers retirement plans in the trash. We complained to the union president, who told us he had nothing to do with the pension, but if we raised a stink, there were other benefits that could be changed or eliminated.

Is this even worth talking to a lawyer, or are we just "in the hands of a vast and capricious power," where we just have to smile and take it.

Should I join the company pension or not?

Rabulah — Mon, 06 Aug 2007 01:34:29 -0800

Company pensions. Good idea? Bad idea? I've been working with my current company for 5 years now, and despite wanting to leave, pretty much constantly, I've never done anything about it, nor will I for the forseeable future.

Today, I received a letter from my Employer, asking me to join the company pension scheme. I live in the UK. I have no other pension scheme operating currently.

Is this *generally* a good idea? What do I need to look out for? Any potential pitfalls, or problems that might occur? Where can I find more advice? I realise that you are not my financial adviser.

Lodgings in Munich during Oktoberfest without spending an arm and a leg?

chillmost — Thu, 21 Jun 2007 08:04:10 -0800

My parents decided they want to visit Munich during the Oktoberfest. Every hotel or B&B near the town center seems to be booked or prohibitively expensive during this time. Can anybody recommend lodgings or other areas in which to look for lodgings that are not directly in the town center? My American parents are going on a German Rhine cruise in Sept-Oct and they decided that when they are done they want to swing by Munich for a few days to check out the sights and possible swing by the Oktoberfest. Naturally, decent rooms near the town center are hard to find because almost everything is booked out a year in advance. Although I live in Germany, I am not familiar with Munich or the surrounding areas and neither are my German friends. Can anybody recommend..

nice areas in which to look that are not in the town center but are still accessible by S-Bahn or a short taxi ride?
Lodgings in said areas?

We will be 4 adults (girlfriend is coming with) and are looking for either 2 double rooms, a family suite or something similar in a B&B/Pension type of thing. My girlfriend and I would have no problem with a hostel but for my parents that might be too much.

Vielen Dank im Voraus!

Am I crazy for opting out of a final salary pension?

Helga-woo — Fri, 08 Jun 2007 01:00:27 -0800

I can get a civil service pension. Yay! This could be a final salary pension. Yay! But is this really my best option? No, really, is it? Please help me understand my pension options, preferably using chocolate confectionery as a teaching aid. In case it helps, I'm 28, single, living in rented accommodation and in the UK.

I've never really understood pensions. They just seem to consist of lots of words that don't actually relate to money, or the ability to move to Spain when I'm 50 and live the good life. No one has yet sat down an explained to me in easy to understand terms how they work.

By luck rather than judgment, I am eligible for a civil service pension (useful link: http://www.civilservice-pensions.gov.uk/). I'm not a civil servant. I've got two options, a final salary pension or a stakeholder pension. A final salary pension is A Good Thing. But... I'm on a temporary contract, until March 2008. There's a good chance it will be extended, but there's also a good chance it won't be. In any case, I don't think I'm going to be working where I'm working for a long time, a couple of years at the most.

The nice and bulky pack that arrived through my door from the Pensions people the other day seemed to suggest that I should go for the stakeholder (partnership) option if I wasn't going to be around for long (admittedly it was more understandable than some pensions information I've read). But I don't really understand why it would be better for me.

I asked our personnel department if there was the possibility of talking to a pensions adviser, there isn't, although one of them did sit down and talk through the options with me for a bit. She was seeming to suggest that the final salary one was a better option (the benefits are better). But I can't get my head around how final salary pensions work.

Oh yes, and my last employer had a very good stakeholder pension, which I had. There's now probably a couple of grand there. What do I do with that now? It's with Scottish Widows, and they're one of the options for the civil service stakeholder one. Is there a possibility I can combine the two? (I know you might not be able to answer that one at all, but I've just moved and the paperwork for my old pension is buried at the bottom of a box).

The way I see my career seems to be carving itself out, I'm probably going to end up working for a few years in one place and then moving on. I can see myself ending up with lots of little pots of money all over the place. I'm not sure that's a good thing. Oh, and the field I'm in, there's a chance I could end up working for the civil service again later in life.

It all makes my head hurt.

Here are my questions...

What is a final salary pension? Why is it A Good Thing? I think I've got my head around the stakeholder ones. (My mind works best when things are explained in real terms - "one-sixtieth of your final pensionable earnings for each year which counts as a pension" means nothing to me - "lets say you get paid 100 peanut butter kitkat chunkies a year and you work for 10 years..." is more my thing)

Should I worry about having lots of little pots of pension all over the place? Will this cause me a problem when I'm 50 and dreaming of Malaga? Should I do something about it now.

Am I crazy for opting out of a final salary pension?

Should I see an IFA? I really can't think that it would be worth their fees right now? But maybe I should...?

A few disclaimers... I know your not my financial adviser, and I'm not expecting you to tell me what to do, but I would like to have a better understanding of my options. I'm not just reon pensions to enable me to live the dream. I don't really want to move to Spain.

Is my defined pension plan kaput?

Gingercat — Thu, 25 Jan 2007 09:11:19 -0800

What does "plan earnings are below ERISA minimum funding levels" mean? I recently got the usual status handout about my former company's pension plan, which I was fully vested in ... one statement worried me: it said that according to an acturarial review, that the plan's earnings were below ERISA minimum funding levels.

Does this mean that the defined pension plan is no longer solvent? Just wondering???

My Father's Pension

Anonymous — Mon, 01 Jan 2007 14:36:14 -0800

My father worked at a big american firm (you've heard of it) for 4 years and 2 months and then was laid off in a press-covered company-wide layoff. His benefits package says he's eligible for pension after 5 years of service but it also says "If you are on an approved leave or layoff, you will receive up to 12 months of vesting and benefit service credit for the period of your leave or layoff." When contacted, the company said this was an "involuntary separation" so doesn't count. What should he do? The pension would be his main source of income when he retires. My father's colleagues experienced this same situation and most of them were able to get the pension after working there >4 and <5 years. What course of action should he take? Can he sue? Is there a government agency to talk to? He has tried contacting (mail and email and phone) the firm and only once got a response about the involuntary separation.

This situation occured about 3 years ago.

He is looking for advice besides "contact a lawyer". No need to precede your advice with IANAL.

Taxation consequences for an expatriate investor?

Joe in Australia — Mon, 04 Sep 2006 22:26:38 -0800

My friend is a USA citizen permanently residing in Australia. What are the taxation consequences of choosing to invest a windfall in the USA rather than Australia? A friend has a one-time only opportunity to withdraw A$100,000 from a pension fund tax free. She presently has no personal income and pays no tax in either Australia or the USA. Her husband has a reliable income, which she shares.

Option 1: Leave the money in the pension fund, where it will accumulate tax free as long as she withdraws (and pays tax) on at least 4% of the capital every year.

Option 2: Withdraw the money and invest it in the USA, where it will be available for use on her regular visits.

Option 3: Withdraw the money and invest it in Australia.

Are there any major tax benefits to doing things one way rather than another?

Empoyer Sponsored Pension Programs.

Mckoan1 — Tue, 01 Aug 2006 16:21:02 -0800

What is the percentage of workers, in the private sector, that now receive pensions? I work in the food service industry and do not receive a pension. Yet, on my property tax bill, I am being charge to cover pension programs for eight government sectors. This is quite disturbing. I therefore would like to know how many workers are covered by employer sponsored pensions.
Thank you.

Will I be penniless when I'm 80?

-harlequin- — Wed, 04 Jan 2006 11:04:22 -0800

How can I start saving for retirement when my career will likely take me from the USA to New Zealand? I wish to benefit from the tax-free nature of a saving scheme like the 401k plans, but I do not expect to spend all that much of my career (or lifetime) in the USA. Is there any way to move 401k savings to a similar scheme in New Zealand without losing it all to the tax penalties for early withdrawal? Are there any cunning alternatives? Am I being silly in not just starting a 401k anyway, and if/when I move to New Zealand, leaving it idle for a few decades? What are the risks of doing this, considering I would not be able to keep an eye on the account, and would probably not keep up with who or what was managing it over the decades?

What kind of retirement schemes are offered in New Zealand these days? What should I look into?

Is there any way to send US earned money US-tax-free to a NZ-tax-free retirement saving scheme?

I fear that by starting a 401k, I could be setting myself up to botch the investment (or even lose) what ever I save over the next few years.

I fear that by trying to save on my own, I’m shooting myself in the foot by losing a third of the savings to income taxes.

I fear that if the paperwork is very much of a hassle, I’ll keep putting it off until another day, and end up never doing it. How do you keep it simple, bulletproof, and foolproof?

I am ~30, and a NZ citizen, not a US citizen. I have not saved very much so far in my life, but am in a good position to do so.

Piggyback question: Is the part of my income paid to social security a complete and obvious write-off? (As in, even more of a write-off than someone who would actually accumulate the full points over their working lifetime and retire in the USA, neither of which I'm likely to do)

Social Security and Canada Pension Plan

Joleta — Tue, 27 Dec 2005 22:21:40 -0800

Can a person collect under both the Canada Pension Plan and U.S. Social Security, based on qualifying work in both countries? My mother-in-law is 80 years old and lives in Calgary, Alberta. She is a U.S. citizen and a Canadian landed immigrant. She has lived in Canada for 35 years and has worked in both Canada and the U.S. She is currently collecting under the Canada Pension Plan, but my husband and I are wondering whether she could also collect U.S. Social Security, as she probably had enough earnings in the U.S. to qualify, before she moved to Canada. (To clarify, we are in the U.S. and don't know much about the Canadian system.) I have been reading the international section of the Social Security Administration web site and am still unsure about this. Most of the information on the SSA site talks about combining work credits from the U.S. and foreign countries in order to qualify for a pension in one or the other country. My question is, if she would qualify for a Social Security pension based solely on her work history in the U.S., would the fact that she is collecting a Canadian pension disqualify her from collecting a U.S. Social Security pension in addition?

Employee Benefits

aacheson — Thu, 03 Jun 2004 08:55:41 -0800

Is there an easy way to find out what companies provide their employees with a pension and medical benefits after a certain period of time working there? I am looking for a centralized list or such that would tell me all those companies that are local-as I want to look at working at a company like that. A centralized list probably doesn't exist. How do you find out if there isn't a centralized place?