Re Start Private Pensions or start Company Pension?

pinnyphuket

Hi,

Firstly may I say Im hopeless with this pension stuff, it all goes over my head!!.

I have 3 private pensions which i started when i was self employed. Due to hard times i froze all three, this is around 4 years ago now.

Im no longer self employed and i am employed by a large transport company who are offering me their company pension.

I can only afford to pay into one at the moment. which would be the best to do?

The three private pensions have very little value (but would be a shame to leave after paying in, ive paid in around £2000).

Can anyone offer any advice please.

Many thanks

Pinnyphuket

Linton

If you are employed by a large company it is likely that they will contribute to the company pension - you need to look at the details. Also, you may well find that the company pension charges are low compared with an individual pension.

In general you would be foolish to turn down any offer of free money.

rabbitmumu

It may be helpful if you state what kind of company pension scheme that is - i.e. final salary or money purchase?

But whatever it is, the company USUALLY contributes IN ADDITION to what you pay, and administration or fund management charges are usually paid for by the company as well.

Therefore for the same amount of your own contribution, you will USUALLY get more from a company pensions because of the above reasons- however, the standard caveats apply - i..e each fund is different,future performance is always unknown...

The other thing you may wish to consider is that - if you change jobs quite often, it's not difficult to transfer your funds to another provider / keep it with the company. The only disadvantage I would say is that the amount or percentage with the company is fixed and if you are short of money e.g. christmas , you MAY not be able to have the flexibility to stop paying for a month or two.

IRO the small private pensions you currently have - you don't need to leave them- you can simply keep them as they are. Or if your company scheme is a money purchase one, you MIGHT also be able to transfer all 3 of them into the company one.

pinnyphuket

Thanks to you both for your replies. Im going to concentrate on the company pension first and perhaps if funds allow look into re stating the private ones.

thanks again

Pinny

Loughton_Monkey

pinnyphuket wrote: »

Thanks to you both for your replies. Im going to concentrate on the company pension first and perhaps if funds allow look into re stating the private ones.

thanks again

Pinny

Normally the old ones don't matter. Why not take a hard look at them and make sure you understand what they are? You should find that you have put money into each of them, and this money has gone into funds. It is those funds, and the charges they deduct, which will grow (or fall) with the markets. So they are not 'frozen' as such.

At worst, you will find the money invested in some dull 'safe' bond or gilt funds - possibly inappropriate for you at the moment. Or they may be in very risky equities.

If you don't 'manage' them, then you may well regret it in years to come. Never too late to learn.