Help a Total Pension Newbie - I am clueless!

I_heart_bargains

Hi guys,

I will apologise in advance for being totally clueless with regards to pensions and having no idea of how any of it works!

I have received a letter from the company I work for which basically said that they had been putting funds in my pension since i started and now i have about £700 which needs to be transferred. I know its not much but i thought that if its easy enough to move it somewhere I may aswell do it?! They have asked for either my new pension provider or IFA's details so they can arrange the transfer for me or alternatively if i dont reply it will just get sucked back up by the company.

So basically, my question is.... Can i just set up a pension in a company somewhere without it costing me anything and without me having to put any contributions into it or do pensions not work like this?

Im sure in a couple of years when i can get my head around pensions i may start putting into one but for now, i remain clueless :rotfl:

Thanks in advance for any response

EDIT: I Am still with the company. I believe they are just having some kind of move around with their pension scheme and as i dont make contributions possibly just want me to move it.

dunstonh

i thought that if its easy enough to move it somewhere I may aswell do it?

Yes it is easy to do. I assume you have left the employment of this company and that is why they are asking you this?

Can i just set up a pension in a company somewhere without it costing me anything and without me having to put any contributions into it or do pensions not work like this?

Yes you can do that. However, there is never a nil cost option. Like all savings and investments, there are charges. Either explicit or implicit (declared or hidden). However, I think the bit you mean is you dont want to pay anything up front. In which case you dont. Just pick a stakeholder pension.