Transfering my Pension...

bored_of_debt

I worked for a company for just over 2 years and accumalted a small pension amount, the combined contributions made totaled circa £9k, which is now worth £7.5k.

Now I have left the company I have been given the option of leaving it where it is or transfering it to another registered pension plan.

I am starting with a new company soon but will be opting out of the pension scheme.

Can anyone advise me what to do with the amount I have already? I'm a little frustrated that it's lost value but thats life, however i'd like to move it somewhere where it may perform better or just earn little interest but not deminish...

A friend at work transfered his to a virgin scheme it think...?

Thanks guys - I've not got much of an idea about pensions so any advice would be helpful. I thought about contacting an ifa but don't think i've got enough money in the pot to make it worth while...

purch

I am starting with a new company soon but will be opting out of the pension scheme

Why are you doing that ?

What sort of scheme is it, and would the employer be making a contribution ?
If you turn down the employers contribution it is basically the same as refusing to accept part of your salary, as all employers will factor in pension contributions into the amount they can afford to pay you.

If you decide to transfer your current 'pot' it is relatively easy and straightforward, and you have plenty of options to choose from.

dunstonh

Can anyone advise me what to do with the amount I have already?

An IFA should be able to. They are the only type of adviser that can though.

I'm a little frustrated that it's lost value but thats life

Why are you frustrated its lost value? Investments dont grow in a straight line. They zig zag. You cant keep getting 20% a year in returns without accepting that there will be a minus 20 to minus 40% drop every now and then.

however i'd like to move it somewhere where it may perform better

How do you know if its performing badly?

or just earn little interest but not deminish...

That isnt how investments work.

A friend at work transfered his to a virgin scheme it think...?

Which is amongst the worst stakeholder pension you can get. I wouldnt be taking advice from him if I was you.

I thought about contacting an ifa but don't think i've got enough money in the pot to make it worth while..

You have a large enough pot to make it worthwhile. If you were thinking about the Virgin pension then seeing an IFA is cheaper even if they work on maximum commission basis.

bored_of_debt

Thanks for your responses guys.

I did think about transferring it into a plan with the new company (awaiting details of the plan and employer contributions) but I have little faith that I will still get what I put in, in 50 years time...

Maybe I'm just being a pessimist but I'd prefer the money in my bank than someone else’s... but then I loose their contributions and tax savings... People at my last company were annoyed at the changes made to their final salary pensions by the company, which they had no control over. I don’t really trust ‘them’…

Am I just being an idiot, should I continue with a company pension? The extra cash each month will help me pay my debt off but am I better off sticking with the pension?

dunstonh

Maybe I'm just being a pessimist but I'd prefer the money in my bank than someone else’s

That isnt logical.

People at my last company were annoyed at the changes made to their final salary pensions by the company, which they had no control over. I don’t really trust ‘them’…

Trust has nothing to do with it. Final salary schemes are effectively an open cheque book and many companies just cannot take on that sort of liability nowadays. So, switching to money purchase takes the liability away. And it also places more choice of investments in your hands. Therefore giving you more control of what your money is doing. That said, given the choice, I would prefer final salary.

Am I just being an idiot, should I continue with a company pension?

If the scheme is final salary or if its money purchase and the employer pays into it then its a no brainer. You should be in it as quick as you can.

The extra cash each month will help me pay my debt off but am I better off sticking with the pension?

There is always an excuse not to pay. They tend to run out when you are in your 50s and you realise the thought of living on £4700 basic state pension isnt very appealing.

bored_of_debt

OK thanks dunstonh, I'll see what my options are with regards to the transfer into my new pension and do that if I can... I may pester you when I find out what the pension plan is, would that be ok?

Thanks