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Unsure about what to do with multiple pensions
agile83
Posts: 65 Forumite
Hi all,
I was wondering if you could give me a point in the right direction with regards to my pensions.
I work in I.T and have found myself changing jobs fairly swiftly until my current role which i hope to stay in for the foreseeable future, especially during this credit crunch i keep hearing about.
My first pension was worth about £1100 and somehow without knowing it i managed to transfer the lot into a different scheme with another firm.
On leaving that firm, im looking to transfer that (currently around £1500) into my current active fund. However the transfer value is only around £400 which is how much i paid into that one so im a little worried that i can only move 400 of my £1500 into my active fund? Also ive read that unless a pension pot is 10k or over its pointless moving it.
Any ideas what i should do? Should i consolidate my pensions, or because they are so small is there something else i should consider. Is it ok to have 8 or 9 pensions of small amounts when you get to 65?
cheers
I was wondering if you could give me a point in the right direction with regards to my pensions.
I work in I.T and have found myself changing jobs fairly swiftly until my current role which i hope to stay in for the foreseeable future, especially during this credit crunch i keep hearing about.
My first pension was worth about £1100 and somehow without knowing it i managed to transfer the lot into a different scheme with another firm.
On leaving that firm, im looking to transfer that (currently around £1500) into my current active fund. However the transfer value is only around £400 which is how much i paid into that one so im a little worried that i can only move 400 of my £1500 into my active fund? Also ive read that unless a pension pot is 10k or over its pointless moving it.
Any ideas what i should do? Should i consolidate my pensions, or because they are so small is there something else i should consider. Is it ok to have 8 or 9 pensions of small amounts when you get to 65?
cheers
Mortgage at August 2017 - £169,800
Current MF date - June 2029 :eek:
Current MF date - June 2029 :eek:
0
Comments
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Firstly, there are many subtle but important differences between company pensions, you would do well to ask your previous employer for a copy of the terms. If you transferred in £1100 and its now only sitting at £1500 you must not have been there for long. If you were with them less than two years it may be possible to get a refund of your contributions, however there may be a tax implication in this.
You are correct that as the sums involved are fairly low, to pay for advice would not be very cost effective.
You can have as many pensions running as you like, there is no limit so if you were to let the existing fund run in addition to your new scheme that would be fine.
Do a little more digging with your previous employer first of all to confirm your transfer value, possibly you may be able to get some free advice from the pension administrators of your new employer too regarding transfers in?I am a Financial Adviser specialising in Mortgages, Protection, Health and Medical Insurance. I also write wills. All information posted on this site is for discussion only, and should not be taken as advice.0
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