Moorron
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| posted on 15/10/08 at 05:50 PM |
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pensions and shares
Need some money help. Are there any accountants here or anyone who might be able to help me?
My Girlfriend was paying into a pension which i think her company also contributed. Looking at the mases of paperwork we know its with standard life.
When she left her last place of work to go self employed we stopped the payments, mainly because i told her too as she doesnt even understand how any
money matters work and i dont trust pension (to many older friends having been shafter by them). The last payment was in 2006.
Today we get a letter telling her she has £500 worth of shares in standard life and does she want to claim them or sell them.
Ignoring the problems in the stocks it might be lower now but i am unsure if selling them will effect the value she has on her pension she has left. i
dont even know what happens to that pension which shows on last years statement she has £5990 worth and might give £17000 when she is 65 and
retires.
so basically,
1: if we cash in the shares will it effect her pension?
2: what happens with the pension now as we arnt paying into it?
thanks
Sorry about my spelling, im an engineer and only work in numbers.
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tomblyth
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| posted on 15/10/08 at 06:16 PM |
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I have standard life shares as well as a pension they were given to customers when they floated on the stock market a while back! you should leave
them until the market recovers, and with the state of the banks at present it may be some time! also you should encurage here to seek advice on her
pension ! and start paying into it again! (these payments are tax exempt! when her end af year accounts are done tell here to ask her accountant! You
also should look for a pension, the state pension will not be very good in a few years (more old people than workers) Id keep the shares for a rainy
day(money you never had' may come in handy in n emergency!)
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Moorron
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| posted on 15/10/08 at 06:57 PM |
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cheers for that. We are need to see her accountant anyway so will see what he thinks about the pension she has frozen.
She wants to sell the shares, but i dont as its a silly time to do it.
Alltho i am looking for a new engine lol.
Sorry about my spelling, im an engineer and only work in numbers.
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carlgeldard
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| posted on 15/10/08 at 07:42 PM |
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You must have got the same letter as me today from Georgeson. I'm keeping them. I just don't know wether to take the share cert or leave
in the standard life account.
Carl
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brashhighlander
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| posted on 15/10/08 at 09:44 PM |
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Hi Moorron
Don't tell everyone, but I am a Chartered Accountant. With regards to your questions:
1 - This will not affect her pension in any way. The shares are now simply an investment she holds. She will have to declare the dividend she gets, if
any, on her self assessment tax return annually.
2- The pension payments your partner has made to date will simply sit there and accumulate a fund based on the markets. Think of the pension fund as a
savings account. Even if she doesn't pay any more money in to it, it will still accumulate interest. However this is dependent on the stock
markets. As we have seen in the last few months, unlike a bank account her pension fund can also be reduced depending on share prices.
With regards to future pension payments, if your partner is a higher rate tax payer then every £1 she pays in to her pension will give her 18p tax
relief.
Personally I am paying in to a pension at the moment as I am on 32 and my pension fund can buy a lot of cheap shares at the moment and wait for them
to recover over then next 20 years, hopefully.
If you want any further advice drop me a u2u. Sorry about the novel, but I hope it makes sense.
jim
[Edited on 15/10/08 by brashhighlander]
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Mansfield
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| posted on 15/10/08 at 09:52 PM |
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I too have received the letter today from Georgeson.
Does yours say "You have unclaimed shares"?
If so, it is because the shares were not claimed when the company floated. In my case I missed the registration deadline and the shares were held (by
Standard Life I think), waiting for me to claim them. Georgeson seem to be some company that ,for a fee, "reunite people with their forgotten
assets".
You may have a different letter to me, so all of the above is irrelevant for you.
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Agriv8
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| posted on 16/10/08 at 07:27 AM |
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quote:
Originally posted by brashhighlander
Hi Moorron
Don't tell everyone, but I am a Chartered Accountant. With regards to your questions:
1 - This will not affect her pension in any way. The shares are now simply an investment she holds. She will have to declare the dividend she gets, if
any, on her self assessment tax return annually.
2- The pension payments your partner has made to date will simply sit there and accumulate a fund based on the markets. Think of the pension fund as a
savings account. Even if she doesn't pay any more money in to it, it will still accumulate interest. However this is dependent on the stock
markets. As we have seen in the last few months, unlike a bank account her pension fund can also be reduced depending on share prices.
With regards to future pension payments, if your partner is a higher rate tax payer then every £1 she pays in to her pension will give her 18p tax
relief.
Personally I am paying in to a pension at the moment as I am on 32 and my pension fund can buy a lot of cheap shares at the moment and wait for them
to recover over then next 20 years, hopefully.
If you want any further advice drop me a u2u. Sorry about the novel, but I hope it makes sense.
jim
[Edited on 15/10/08 by brashhighlander]
Agree with jim ( I also have somthing to do with pensions  )
Keep the pension where it is, if your Girlfreind ever joins another company / organisation ( that offer a pension scheme ) she can look at tranfering
the pension, (but I would always advise a trusted finaincial bod to check it over 'The benefits' before deciding to
'Transfer'.
Regards
Agriv8
Taller than your average Guy !
Management is like a tree of monkeys. - Those at the top look down and see a tree full of smiling faces. BUT Those at the bottom look up and see a
tree full of a*seholes .............
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Paul TigerB6
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| posted on 16/10/08 at 08:36 AM |
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As above, claim the shares and then keep hold of them at least until the prices recover.
Rather than think of the pension as a savings account which earns interest (which it doesnt - even if held in a cash fund as these are unitised and
fluctuate in value like any other), think of it a tax efficient investment. As stated, pension contributions attract tax relief so effectively she
wont pay income tax on any ammount thats paid into a pension.
What is worth looking at with a qualified Financial Advisor is the funds the pension is invested in. Invariably those people who get
"shafted" by their pensions are those that just leave them for year after year without managing them in any way. Funds chosen 5 years ago
might not be whats best now, so never mind those chosen 35 years ago!!!
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Moorron
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| posted on 16/10/08 at 09:41 AM |
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A lovley set of answers and very clear too.
We will claim them and sit on them for some time. didnt realise we needed to tell the accountant this, but we have only just found out.
She went self employed about 2 years ago (hair stylist) and i have just handed the books to our choosen accountant but we arnt to convident with him.
He is a nice guy and was recomended but he hasnt given much advice. We have had a few meeting with him and he didnt tell us what we could claim for
like elctricity, water and gas that we use every day to wash the towels she uses. Also her car and milage we do, not very clear on what we can
claim.
So all he has is her takings book which includes all her expenses and stock and a spread sheet of her daily mileage and the daily mileage used for
work purposes.
Her books are very clear and include every reciept we get, its also good to see her online bank is identical to her workings out in the books.
We are hopeing we will hear from him soon so we can see her tax bill and what he has claimed for. But if we find out he just claimed for mileage and
nothing else i aint going to be happy.
Any input welcome.
Andy
Sorry about my spelling, im an engineer and only work in numbers.
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