To transfer or not transfer??

aimingforadebtfreelife

Hi all, need a bit of help. At the age of 34 I decided I must get a pension and went for the Virgin Stakeholder. From 2 previous jobs I had pensions which were sat idle. I transferred one (Norwich union) which only had a xfer value of £154 (only with them short period of time) into the Virgin. With Abbey I was on a final salary pension and when I left 4 years ago its been sat idle gaining a little each month. Ive been told by Virgin the Abbey pension xfer value is £4700 and currently has a pension value of £956 a year. Now the big question - should I transfer it?? I dont work for Abbey no more so there will be no more contributions. Virgin have told me to look into things as I may be losing a lot of benefits if I transferred but if Im not contributing to that plan anymore could it be better invested in an active one? Many thanks

dunstonh

<Edit by Pal: References to specific FSA regulated products removed>

I'm surprised that Virgin would consider a final salary transfer into a stakeholder without advice being sought as they have to report final salary occupational pension transfers to the FSA.

BTW, the Abbey pension isnt sitting there idle. It gets increased yearly by a rate not too far off inflation. You also have to look at the transfer value of 4k against the current income value of £956. There is no way that £4700 could grow in a stakeholder to give you a guaranteed income that matches Abbey.

aimingforadebtfreelife

Many thanks for your reply - much appreciated. Virgin in their transfer letter did put a couple of paragraphs highlighting possible dangers and for me to fill in a CA form or so to confirm and confirm again etc etc. I'll leave the Abbey where it is.