Should I leave pension with my employer after leaving?

vulcan59

Would be grateful for any advice please. I am considering leaving my current employer under a voluntary redundancy scheme. I have a pension fund of approx £170,000 in my employers scheme. Upon leaving I have the option to leave this sum with them or transfer it somewhere else. If I leave it where it is then there will be an annual charge of 1% of the fund value. My question is whether that is a reasonable amount compared with moving the money to another pension provider. I expect I would have to pay an annual charge if I moved the pension elsewhere, is that right?. Note that I probably won't be moving the pension to a new employer, I am planning to take a long break and may be unemployed for some time.

dunstonh

My question is whether that is a reasonable amount compared with moving the money to another pension provider

1 to 1.5% is the norm. 1% for internal insurance company funds to 1.5% for professional fund houses.

I expect I would have to pay an annual charge if I moved the pension elsewhere, is that right?.

Yes.

It really depends on the quality of the funds offered and your investment objectives as to what you should do.

newnik69

What would happen to my frozen Lloyds TSB final salary pension should the group get nationalised by the government???

vulcan59

dunstonh wrote: »

1 to 1.5% is the norm. 1% for internal insurance company funds to 1.5% for professional fund houses.
It really depends on the quality of the funds offered and your investment objectives as to what you should do.

Thanks for the info. It's an L&G global equity index fund (not sure of the exact one) so 1% is about right then. Looks like it's time to find that IFA I've been thinking about for a while and discuss some options.

chesky369

What would happen to my frozen Lloyds TSB final salary pension should the group get nationalised by the government???

Absolutely nothing - probably - in fact, you may end up being a government employee in which case, you will DEFINITELY be OK since it's only government employees and bankers who can be sure of their final salary schemes. The rest of us have to pay for them.