Host:		Hello and welcome. Ian's is here ready to take your questions.
Ian Naismith, Scottish Widows:		Ian: Hello, everyone - I'm looking forward to answering your questions today. Do send in a question if you have one!
Nathalie Murphy:		Should I just invest into isas that are tax free rather than paying into a pension fund
Ian Naismith, Scottish Widows:		ISAs are a very good way to save for your future, and as you say you don’t have to pay any tax if your investments increase in value. The benefit of pensions is not just that you don’t pay tax on profits but the Government pays part of the initial investment for you – either 20% or 40% depending on what rate of tax you pay. You have to pay tax on your pension after you retire, but that might be at a lower rate than when you’re working and in any case you can get a quarter as a tax-free lump sum. Many people prefer to save in an ISA when they’re younger because their money isn’t tied up if they need it. However, if you do that you need to ensure that it really is earmarked for your retirement unless you have a financial emergency. You could then consider moving it into a pension as you get closer to retirement so that you get the full tax breaks.
Dave Mills:		For those unable to attend the live chat, we'll there be a transcript online after the event? Thanks
Ian Naismith, Scottish Widows:		Host: Yes, the transcript of this chat will just appear as this question and answer session progresses and should always be available via the direct link to the page.
Kath O:		I have a final salary pension and have a much larger pension than my husband. Do retired couples have individual allowances or can they combine their income and allowances for tax purposes as this will help in deciding whether I should choose to take a larger lump sum and reduce my pension? Thanks
Ian Naismith, Scottish Widows:		In most cases married couples have separate allowances for tax purposes. There is a married couple’s allowance where one partner was born before 6 April 1935, but that obviously applies to fewer couples as time goes on. It’s generally an allowance to the husband, but can be transferred to the wife if the husband doesn’t earn enough to benefit from it. If you pay tax and your husband doesn’t, or if you pay a higher rate, you might want to consider having investments that are taxable in his name, or at least in your joint names. This could include, for example, savings accounts. It doesn’t make any difference for ISAs because they’re not taxable.
Joyce Hallsworth:		I am 74,and because I stayed at home looking after my 3 children and dident know I would be on a reduced pension now it's difficult to manage, 5 tears ago I move to Spain with my husband because it was cheaoer to live here then,Is there any possible way for me to get more pension. My pension is worth under 40 Euros a week
Ian Naismith, Scottish Widows:		I think there’s limited scope for you to do anything with UK pensions because you probably won’t be entitled to anything on top of your basic UK pension. It’s worth checking that you’re getting everything you’re entitled too, though. There’s useful information at www.direct.gov.uk. Go to the section called “Britons living abroad”, and there’s a section there on pensions, which includes contact details for the International Pension Centre which should be able to answer your questions.
jacqui r:		Are there any pensions benefits (tax breaks?) able to women that aren't available to men?
Ian Naismith, Scottish Widows:		The biggest benefit for women has been that they get their state pension from age 60, compared with 65 for men. However, that’s about to change and the age for women will increase in stages from 60 to 65 between 2010 and 2020. There’s no difference between the tax benefits of [pension for women and men.
Angela:		I started a pension a while ago, but then stopped paying when I went on maternity leave; I have never managed to start the payments up again since & my child is now 2! I also work part tme, so find it hard as it is funds wise without losing any to a pension! Any advice at all on pensions, and whether they are worth contribting to? Are we really guaranteed anything out of them? Many thanks,
Ian Naismith, Scottish Widows:		Hi Angela. It's really good that you started a pension when you were younger because a lot of people leave it until it is too late. However, I think it is really important that you start paying in again when you can afford to. A lot of pensions have lost some of their value during the recession but over the long term, pension plans have, historically, given good returns. To have enough to live on comfortably when you retire you really need to save as much as you can, as early as you can.
Paul Ellis:		I have a 34 year pension with Royal Mail and they have wrote to me to see if i was interested in taking a flexible pension by taking it now and still working but i would lose 5% of my benefits for each year up to the age of 60 ( i.e 35%), i am 53 at present, is it worth the risk, i could possible invest lump sum and monthly payments ???
Ian Naismith, Scottish Widows:		This is a fairly normal position for ‘final salary’ type pensions when people choose to retire early. The reductions are designed to give you a pension that will cost about the same to the pension scheme as if you started it from age 60, based on how long people live on average. From your point of view, you get pension for seven years longer, but have then given up a third of your pension for as long as you live. This means in broad terms that you’ll have gained if you die before about age 74, but lose out overall if you live beyond that. According to Government estimates, a woman of 53 will live on average till 84 and a man until 81 so it looks as though you’re more likely to lose than gain. However, it all depends on your individual circumstances, including whether you need the money now, and if you’re in doubt you should consult a financial adviser.
Susan Taylor:		Hi Ian - I have a company final salary pension but pay into any additional pension - will this be enough when I retire? I'm 38 and took a year off 4 years ago to have a child. Many thanks
Ian Naismith, Scottish Widows:		Thanks for your question, Susan. You're in a very good position compared with most people because you have a final salary pension scheme which guarantees you an income when you retire. It does sound as if you are doing the right thing by paying into an additional pension, but I can't say whether that will be enough without more information. If you have the money to spare, it probably would be a good idea to pay in something extra if you can to make up for the year that you missed.
Amy Bostock:		I am from abroad and may not retire here, what sort of pension should I invest in so I can still benefit and take it with me if I return to my home county (NZ)
Ian Naismith, Scottish Widows:		Hi Amy. Whatever kind of pension you invest in, in the UK, you should be able to transfer it to a pension arrangement in another country if you need to. You could probably also keep your UK pension and have that paid to you in the country you are living in - but in that case the payments would probably be in UK pounds, so the value to you could fluctuate with exchange rates. If you are not comfortable saving into a pension you could always save into an ISA which would give you a lump sum for your retirement. I suggest you speak to a financal adviser.
R Skinner:		Having already saved for my retirement where would you suggest I invest my savings so that they are safe? I invested in a SW Maxi ISA. I do take a small monthly income from this but between June 2007 and June 2009 it reduced in value by some 26%
Ian Naismith, Scottish Widows:		The only safe way to ensure your investment doesn't fall is to save in a bank account or a cash ISA. However, over the longer term, stock market investments such as maxi-ISAs have historically given better returns. A lot of investments did fall during the recession but the stock market has recovered quite a lot over the last few months.
sue:		i work for royal mail and the final salary pension has ended and replaced with another. i only have 7-12 yrs to retirement depending if i retire at 60 or 65 please tell me how i can boost my pension or if there is any other way i can have a good amount for retirement
Ian Naismith, Scottish Widows:		Hi Sue. If you’ve worked for Royal Mail for a long time, hopefully you’ve already built up a good pension, but it’s always worth saving more for your retirement if you can. Pension is generally a good way to do this, because it has good tax breaks. You could ask your pension scheme about paying in additional voluntary contributions, or if you’d rather save separately you could consider a stakeholder pension which you can get from companies like Scottish Widows.
Qing :		i am being trained to teach in a college. i want to teach part-time in the future due to young children. what kind of pension scheme i might expect?
Ian Naismith, Scottish Widows:		Thanks for your question Qing. A lot depends on where you end up working and whether you’re a permanent employee or doing short-term placements. However, if you end up working in state schools you’ll probably qualify for the teachers’ pension scheme which is currently a very generous ‘final salary’ type of scheme. You can find out more about it at www.teacherspensions.co.uk.
Bhupinder:		Hello Ian, I am a teacher, but I started a little late after my children started school. I started teaching in 2003 and have only been paying into the teachers pension scheme since then. I am divorced and bringing up the chlldren on my own. I am 47 now and would like to have an idea of how much my pension will be if I retire at 65? I don't think that there is anything I can do to increase this amount as I can barely manage on my current salary of £33k. I have own a house which I bought last year and have 17 more years to pay the mortgage. Thanks for your help Bhupinder
Ian Naismith, Scottish Widows:		Hi Bhupinder. Most pension schemes send out a statement to members every year saying how much they might receive when they retire. If you don’t remember getting one, it may be worth asking the pension scheme for it. You should be able to get in touch through the website www.teacherspensions.co.uk or through your local authority. I can really sympathise with people bringing up children on their own and trying to prepare for retirement while trying to make ends meet. The good news is that the teachers’ scheme is a very good one, so even though you started late you should get a worthwhile pension. You could also consider whether you could top it up when your family are less financially dependent on you. If you’ve managed to pay your mortgage off by the time you retire, you may be able to use the value of your house to increase your income, either by selling it and moving into a smaller one or by getting a special kind of loan based on it – what is often called equity release. The best thing is if you have enough saved up to get by on, though.
Jo:		How do I calculate how much I should be putting into a pension plan/savings each month or year?
Ian Naismith, Scottish Widows:		Hi Jo. We suggest that people over 30 should be putting aside around £1 of every £8 they earn for their retirement. That includes anything your employer might pay in. If you can’t afford that, just save what you can and try to increase it as you get older.
margaret jones:		what happens to women like myself 61 yrs old who have paid small stamp and do not get any state pension even though i have paid 8and half years full stamp.
Ian Naismith, Scottish Widows:		Hi Margaret. The default position is that you’ll start to receive a ‘Category B’ pension when your husband reaches 65, if he hasn’t already. This is about 60% of the normal basic state pensions (assuming your husband has paid enough National Insurance to be entitled to the full basic state pension). Depending on when you paid the full stamp, there may be an option for you to pay additional (Class 3) National Insurance contributions to take you up to 10 years which would then entitle you to some state pension in your own right. However, you need to be sure it will benefit you before you do that – you may well be better off with the Category B pension. If you’re unfortunate enough to be widowed or divorced, you should still be able to receive a state pension based on your husband’s National Insurance record. I suggest you may want to phone the Government helpline on 0845 60 60 285 to find out more about what your options are.
Kevin Carson:		Hi, I have never had a pension or contributed to a work one. I am in my early thirties, which many regard as too late to start a pension. Am i too late to start, where should I invest/how much, or should i go with a SIPP instead? Any help would be much appreciated, kind regards, Kevin
Ian Naismith, Scottish Widows:		This is a really interesting question Kevin, and one which I am sure applies to a lot of people. It's certainly not too late to start a pension in your early thirties. In fact, Scottish Widows has calculated that if you save 12% of everything you earn - that's about one pound in every eight, as per my previous answer to Jo - that should give you an acceptable living standard when you retire. Obviously, if you start a bit later, you may need to save a bit more. If 12% sounds too much for you to pay in at present, do contribute what you can, and try to build it up later. SIPPs generally are unsuitable for those who are just starting out and you might be better looking at a stakeholder pension to begin with.
confused :		would you be better saving into a cash isa or a pension taking into account pension charges ? ie set up fees and on going management charges
Ian Naismith, Scottish Widows:		If you save in a stakeholder pension there are no set-up fees and ongoing management charges have to be within limits set by the Government. Other pensions often have similarly low charges, so investing in a basic pension needn’t be expensive. What’s best for you depends a lot on your personal circumstances, but if you’re quite a long way from retiring you probably don’t want to have all your savings in a cash ISA because over the long term the interest you receive is likely to be a lot less than the amount your investments could grow by if they were invested in the stockmarket. Tax relief on pensions means that the Government pays some of your contribution for you, so they have an advantage over ISAs. However, one option you my want to consider if you’ve got a long time before you expect to retire is to save in an ISA for now and then move into pension later. Make sure you don’t spend the money unless you need to, though.
Pensions Con:		I have just retried and in my working live of 50 5ears have payed my contibutions along with my employer int a pension fund building a nce nest egg for my retiremnt , only to find that this nest egg has been desimated by the fall in shares and the creid crunch , so the anuitty i have had to take is far lower than i originally expected. now i am in reciept of my pittance of a pension the the inland reveniew see fit to tax me the government were at fault along with gredy bankes for this credit crunch so all in all i feel i have been hit with a double whammy yours r.h .smith
Ian Naismith, Scottish Widows:		It’s really hard for those who’ve had to retire when stockmarkets have fallen meaning they end up with much less than they expected. Unfortunately it’s too late for you now, but we generally suggest that it’s a good idea to gradually move your investments away from funds that invest mainly in company shares to more secure ones as people get close to retirement. While it must add to your sense of grievance that the Government takes tax off your small pension, bear in mind that you’ll have received tax relief on amounts you paid in and probably also a tax-free lump sum when you retired.
MarciaW1:		I understand spouals pension must be split on divorce now. Does this go both ways or Is it just the larger pot that's split. I left the workforce for several years to be a home maker before we split up but am back working again now
Ian Naismith, Scottish Widows:		Thanks for your question Marcia. Our research found that very often pensions aren't considered in divorce settlements so it's good that you are thinking about this. With spousal pensions, both partners' pensions should be taken into account in the settlement. If yours is smaller it may make sense for you to keep it all and receive a smaller percentage of your ex-spouse's pension than you otherwise would. Remember also that if it suits you better it's possible to trade off pensions against other assets from the marriage. I would suggest that you get the pension schemes to provide the values of the pensions and then work out what is best for both of you.
Agnetha:		I have several years pension entitlement from Sweden before I cam over here to work. Can I fold this into a UK pension or will I just get two pension cheques when I retire? Thank you
Ian Naismith, Scottish Widows:		It will probably be possible to transfer your pension from Sweden to the UK but you will need to ask the pension scheme whether this is possible. If not, it may well be as you say and that you get two sets of pension payments.
Skier Libby:		Hello, I've just left my job but am too young to retire. I was contributing to a company stakeholder pension. When I move jobs, can I take this pot with me and fold it into the next company scheme? Thanks
Ian Naismith, Scottish Widows:		Yes, it will probably be possible to transfer your stakeholder pension into your new scheme. One of the advantages of a stakeholder pension is that there are no penalties if you transfer it - however, you could also leave it where it is because stakeholder pensions have low charges. If you are not sure what to do, speak to a financial adviser.
Liz:		I save a bit through a pension but have no idea whether it's enough - how can I get an idea of how much I need?
Ian Naismith, Scottish Widows:		Hi Liz. Thanks for your question. Our rule of thumb is that people should aim to save around £1 out of every £8 they earn from age 30 onwards. This includes anything paid in by your employer. If that’s too much for you, save what you can and aim to increase it as you get older. If you want guidance on your particular situation, I suggest that you consult a professional financial adviser.
COlin McAndrew:		Mind if I gatecrash in with a general pensions question - I understand the government will be introducing personal account where we all essentially become responsible for ourselves. Does this mean I will have to pick pension investments myself in teh future, or will this still be somethign your company (and others) can help with. I'm just a bit confused about what the personal account scheme means.
Ian Naismith, Scottish Widows:		No problem Colin! Everyone welcome! The government plans to introduce personal accounts from 2012, and by 2015, everyone who has an employer will automatically be placed in a pension unless they choose to opt out. However, there will be a default investment fund so you don't have to make a choice unless you want to. Private providers like Scottish Widows also offer pension schemes that your employer could choose instead of personal accounts.
Petras:		I think I've just left it all a bit late to start something... (51) mY husband is just retiring and has opted to take a lower annuity now which pays me out a percentage in the future. This should be enough shouldn't it?
Ian Naismith, Scottish Widows:		It's good that your husband has built in a pension for you because many people forget about this. However, you should check how much pension you would actually get if he died before you and make sure that this would be enough to live on. Anything you can save now will help you to enjoy a more comfortable retirement.
CorinneWelch:		Hello, I haev a rainy day fund I have been paying in to instead of a pension while I am at home - I just wanted to get my hands on it if needed. SInce it's now a few thousand pounds and my kids are growing up would I be wise to think aout puttign it in a pension?
Ian Naismith, Scottish Widows:		For many people it makes sense not to save in a pension when they are younger because they want to be sure they have money if they need it for emergencies. Scottish Widows' research found that this is particular concern for many women like yourself. However, it does make sense to invest in a pension later on because the government adds in tax relief which is at least 20% of the total going into your pension - and even more if you are a higher-rate tax payer. You can also take out 25% of the total at retirement as a tax-free lump sum.
J Beckford :		Hi there, I am in my mid twenties and cant really afford to save for my pension yet - if i dont start saving till I am thirty will it drastically affect my final pension pot?
Ian Naismith, Scottish Widows:		When we do our research we accept that most people in their 20s can't afford to save much for their retirement and assume that most people will start at 30. However, we then suggest that they invest 12% of their earnings each year, and if you are able to start earlier you might have to save less later on. Many women end up taking a career break when they start a family so its particularly beneficial for them to start saving early.
Miss Doubtfire:		I have five children, three of which still are currently at university which I am funding which means my pension contributions have had to be cut back - are there any schemes around to help single parents like myself in these situations? I dont want to be dependent on my children when I am a pensioner!
Ian Naismith, Scottish Widows:		It sounds like you are still managing to make some contribution to your pension which, if this is the case, is great to hear because any contribution now should help later. Unfortunately, there are no special tax breaks on pensions for single parents so when your children have finished university it would be good if you are able to then increase the payments you make. Having invested in your children's education, they hopefully will not need to be so financially dependent on you in the future.
DonSurrey:		Hi - fascinating. Just read your answer to Mr. McAndrew - so when personal ants come in, will people be able to opt out (completely). I thought they were mandatory.I do my saving through ISAS - don't trust pensions and tryign to avoid having to have one.
Ian Naismith, Scottish Widows:		Yes it will be possible to opt out completely, but if you do you will lose the benefit of the contribution your employer would have made, and also the tax relief you would have got from the government. For most people it will be best to stay opted into personal accounts or a pension provided by your employer.
Cara&Karen:		Hello - we are in a civil partnership and both have small pensions of our own (we aer in our 20s). I understand that thelaw treats us the same as married people now, but what does this actually mean for our pensions / retirement? Thanking you.
Ian Naismith, Scottish Widows:		You are right that legally civil partners are treated in exactly the same way as married people. This means that when you retire - though that may in a very long time from now - it will be possible for you to provide a pension for your civil partner if you should die first. And vice versa. If you, unfortunately, split up at some stage you will both have the same rights as divorcing spouses.
Kenny Campbell:		I have a company pension and my company has given me a choice of different funds that I can go into. How can I decide which fund to choose?
Ian Naismith, Scottish Widows:		The fund you choose will depend on how much of a risk you're willing to take with your pensions and also how old you are. Most pension arrangements have default funds that are suitable for many people. But if you are not sure what to do I suggest you speak to a financial adviser.
Crazy Eddie:		I'm too young to be thinking about pensions now!
Ian Naismith, Scottish Widows:		Actually, its never too young to think about a pension. And you should ideally look to start by the time you are 30. The earlier you start, the more time you money has to grow.
LIDZAMA MERAPPA:		YOU VERY NICE MAN. I work in London for some years but will go home to Africa. My boss takes money for pension. Can I take with me or leave here?
Ian Naismith, Scottish Widows:		Thank you for your kind words Lidzama, I hope I can answer your question! You may be able to transfer your pension to Africa when you go home but that will depend on finding a pension scheme that the UK government will alllow you to transfer to. If you can't transfer it, you can have your pension paid to you direct from the UK.
Sophia:		Hi Ian I am 38 years old and I haven't got a pension. I am very worried about it and know that I really should start saving soon. How much shoudl I be saving a month to be able to live comfortably. I reckon I probably won't retire until I am 70!! Many thanks
Ian Naismith, Scottish Widows:		Hello Sophia. It's good that you are thinking of starting to save soon, because the longer you leave it, the longer you may have to work for before you can afford to retire. As I have said before in today's webchat - we suggest that people save 12% of their income from aged 30 onward. However, that assumes that they will want to retire at 65 and if you are willing to keep working until 70, then 12% from now may be enough, if you can afford the payments now.
Jenny Raworth:		I work for a local authority and am a member of the LGPS. I am nearly 30, but plan to work for some time yet and wonder if it is worth me buying additional years service? Or is likely reform of my, allegedly gold plated, pension in the future going make this a poor investment. I am most worried about moving from a final salary position to a lifetime average, as I am still working my way up the pay scales this would make it less valuable to have bought additional service.
Ian Naismith, Scottish Widows:		This is quite a complicated situation because we don't know for certain what will happen with the LGPS scheme. If you are worried about changes, you might want to think about saving into a stakeholder pension rather than buying added years, but the best thing would be to consult with a financial adviser.
Host:		Unfortunately, that is all the time we have for today. Thanks for joining us.
Ian Naismith, Scottish Widows:		Many thanks for all your questions. I hope I have been able to provide some guidance. There is lots more information about pensions on the Scottish Widows site, where you can also find our Women and Pensions Report: www.scottishwidows.co.uk. And here you can also find out more about how to take out a stakeholder pension.
Doingthesplitz:		I'm mid way through divorcing my husband. I have a small pension he knows nothign about and am worried it will affect the restof the proposed settlement. i should have said something before but didnt.. silly I know. Are pensions records available to solicitors or can I keep my mouth shut?
Ian Naismith, Scottish Widows:		I have to advise that you should tell the solicitors about your pension. If the pot is as small as you suggest, then it may not have a fundamental effect on any settlement and you will at least know that everything was taken into account as it should be.