Another pension advice?

MoneyMan-SOS

As I have a pension with a private pension provider and my place of employment offers a pension scheme after a year service with them (which I’m thinking of taking, only been there for three months, many more months to go!).

My question is. Is it a good idea to takeout another pension scheme when I already have one?

The company offer is, I put in 1 – 9 % of my weeks wage and they double that on top. Any advice please!

Your comments will be most appreciated.

Many thanks.

MikeJones_2

Hi MoneyManSOS,

Have you investigated how your new employer's scheme compares with your existing private pension (fund choice, charges, product provider's financial strength etc)?

Why not ask if your current employer would be willing to pay the employer contribution into your private pension instead?

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

MoneyMan-SOS

Hi Mike Jones,

Thanks for that.

Have you investigated how your new employer's scheme compares with your existing private pension (fund choice, charges, product provider's financial strength etc)?

No, I haven't yet but i'll will look into it.

[qoute]
Why not ask if your current employer would be willing to pay the employer contribution into your private pension instead?

That's a thought! I will ask and see.

Overall is it wise to have two separate pension scheme or have one big one?

Once again thanks, and I look forward to hear from you again.

MikeJones_2

Hi MoneyMan-SOS

MoneyMan-SOS wrote: »

Overall is it wise to have two separate pension scheme or have one big one?

If I had the wisdom and foresight to answer that one correctly, I'd be lying on beach somewhere hot!

There are arguments for both scenarios and I suspect that with the current economic situation, spreading investments might be one acceptable reply. But there's much more to it than that, such as the amounts involved, security of your current employment, investment risk etc.

This might help you consider 8 of the most common 'risks' involved in pension planning:
Security and Risk (Money Purchase Schemes)

I hope this helps you reflect on your options.

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

EdInvestor

MoneyMan-SOS wrote: »

My question is. Is it a good idea to takeout another pension scheme when I already have one?The company offer is, I put in 1 – 9 % of my weeks wage and they double that on top. Any advice please!

This is the equivalent of free money, so shouldn't be missed. You can always put your own scheme on hold for the moment and pzay the contributions into the company scheme to collect the free money.

Then later, if you leave that job, you can transfer the money in the company scheme out to your personal scheme, which will have continued growing in the meantime.

a7man

EdInvestor wrote: »

This is the equivalent of free money, so shouldn't be missed. You can always put your own scheme on hold for the moment and pzay the contributions into the company scheme to collect the free money.

Then later, if you leave that job, you can transfer the money in the company scheme out to your personal scheme, which will have continued growing in the meantime.

I agree - if your not using the full 9% or your contribution that your employer would double I would invest extra into this pension. The doubling of your contributions is an opportunity that cant be missed.