Question on NICO funds into pension

MM2005

Hi

I posted a while back regarding my wife having a private pension but the company she works for now offering a comapny pension. We've decided to freeze the payments into the private pensios (she has to pay a minimum 3% into the works one + the company pay 5%). When we do this I assume we can get the NICO payment made into the works one? I'm wondering a) how we do this and b) should we do it? For all we are freezing her paytments into the private pension, is it worth continuing pumping the NICO payment into this?

Your advice/thoughts as always are much appreciated.

Cheers
MM

EdInvestor

I assume you are referring to contracted out rebates. You need to ask if the new scheme is contracted out or in.If it's contracted out, the rebates can go into it.If it isn't, you have 2 choices: continue to be contracted out and have the rebates paid in to the old PP or contract back into the state shcme.

There are a number of issues involved in this, see the thread stuck at the top of the forum for a discussion.

If the private scheme is an old one it would also be wortth reviewing it to see whether it is invested in funds which are likely to perform well and has low charges.Many old schemes are very poor quality by today's standards and a transfer may be advisable - or a shift within the existing form to better funds and a cheaper charging structure.

MM2005

EdInvestor wrote:

I assume you are referring to contracted out rebates. You need to ask if the new scheme is contracted out or in.If it's contracted out, the rebates can go into it.If it isn't, you have 2 choices: continue to be contracted out and have the rebates paid in to the old PP or contract back into the state shcme.

There are a number of issues involved in this, see the thread stuck at the top of the forum for a discussion.

If the private scheme is an old one it would also be wortth reviewing it to see whether it is invested in funds which are likely to perform well and has low charges.Many old schemes are very poor quality by today's standards and a transfer may be advisable - or a shift within the existing form to better funds and a cheaper charging structure.

Thanks for the info and list of options available - much appreciated.