3 Company Pensions

Mr_Mister

I'm working for my third company in the last 10 years and just joined the company pension. My question is, is it worthwhile transferring the 2 pensions from by previous employers into my new one or just let all 3 grow independently? I was with the 1st company for around 4 years and the 2nd company, 5 years.
Thanks

EdInvestor

What kind of company pensions are they - final salary, money puchase occupational or group personal pensions?

Mr_Mister

Defined Contribution and Stakeholder

duckhunter

There's basically two things you need to look at funds and charges. I'd get an emv (quote to retirement) for the frozen pensions then ask the new scheme for a quote based on transferring the two pensions in. This will tell you how charges will affect what you get back. All of the quotes will be based on the same assumed growth rates.

Second thing is fund choice. If you prefer the funds in the frozen pensions and the charges aren't too bad then leave them there but if the new one has better funds then it may be worth transferring.

An IFA could do this for you for a fee if you're not comfortable doing this.

EdInvestor

I'd also ask for an update on both fund value and transfer value so you can check on any penalties for moving. Does the D/C pension offer any extras over and above a pension based on fund value ?

Another thing you could consider is opening a new low cost Sipp and moving the two old pensions into it so they can be consolidated and the amount invested in the whole range of products, not just what the current pension offers.

When you move to the next job, the current pension can then be moved into your Sipp as well. Way to go for people who move jobs a lot, IMHO. Makes the admin and investment arrangments much easier having everything in one spot.