Number of different pension plans

peterboroughman_2

I have a number of different Personal Pension Plans than I have accumulated over the years by moving from job to job. The thing is I have stopped contributing to them and I am unhappy with there performance. I was thinking of consolidating them into one pension plan, and could really use your advice. Can you help me please?

dunstonh

I could be accused of being biased on this being an IFA but this is one area where using an IFA is particulary useful. Pension transfers are higher risk business from a regulatory standpoint. Old schemes come under different regimes and rules and the providers often throw in benefits or options which are very valuable. Many of these benefits would not be apparant to the untrained eye. Then there is the costs issue. Is it cheaper to pay the penatly, if there is one, and get lower charges over the remaining term? Sometimes it is. Sometimes it isnt.

Then you have fund performance. You say you are unhappy about the performance. How do you know the alternatives would be any better? After all, we are coming off the back of a stockmarket crash. Performance would appear bad on paper. Especially to those that are no longer contributing. Do your current providers offer a range of funds which match your investment views? Using that option may be cheaper?

If you can ascertain these things for yourself then fair enough. Otherwise an IFA that specialises in pensions transfers would be best to review if for you. (Not all IFAs can do pension transfers so make sure you get one that can otherwise they may take the appt, dismiss the need to transfer without reviewing it and try and advise you on other areas). As I posted on a thread the other day when the similar question was asked, I find about 1 in 5 "legacy" pensions (ie pre-stakeholder regime) are too good to transfer.