pros and cons of transferring pension funds

rkd_999

Hi guys

hope you are all well. I am hoping someone can give me some advice around my pension situation. I'm 32 and currently have 3 deferred pension funds and a current money purchase scheme witn my new employee: -

I have approx £6,000 in a standard life - personal pension one. I am also contracted out of serps and this is paid into this pension.

I also have 2 months payts into a final salary pension scheme with Group 4 worth about £600, and a group money purchase plan with my previous employer with clerical medical which has £5000 invested into it.

I have joined my current employers pension scheme which is a stakeholder pension plan with legal and general - i pay 300 into this and my employer pays 350 per month.

My question is around consolidating all these schemes into my current scheme (which has very low charges) or should I leave the individual pensions alone until I am nearer retirement?

I have also recently received a letter from my previous employer about the clerical medical scheme and they are looking to remove the deferred pensions (from employers that have left) into individual private pensions? Not sure whether this is too my benefit or whether I should transfer this into my current scheme?

Also, I have recently become a higher tax payer - how do I reclaim the additional tax paid into my pension?

Very confused :mad: , any help / advice would be appreicated.

dunstonh

My question is around consolidating all these schemes into my current scheme (which has very low charges) or should I leave the individual pensions alone until I am nearer retirement?

We cant tell if it would be best or not because a TVAS would need to be done on the schemes to see what benefits would be gained and what benefits would be lost.

Generally, a final salary scheme is usually best left where it is. Money purchase schemes can be easier to move and not face a loss although the L&G group stakeholder is not likely to be that desirable from an investment point of view. However, chances are you arent investing them in a desirable manner currently (most people dont).

Not sure whether this is too my benefit or whether I should transfer this into my current scheme?

Again it depends on the scheme info and if you are being offered any enhancements.

Also, I have recently become a higher tax payer - how do I reclaim the additional tax paid into my pension?

If it comes off your payslip, its handled there. If its direct debit, you do it via your tax return. If you get tax credits you should remember to deduct your personal contributions from your income as it can increase the amount you get in tax credits.

Very confused :mad: , any help / advice would be appreicated.

We cannot give advice on regulated areas on the forum. Consider it help.

EdInvestor

The Standard Life pension has low charges and a very good choice of internal and external funds, so I would tend to use that as the ongoing pension, transferring the Clerical Medical one in there - and also the new L&G one should you change jobs again later.

Normally one would leave a defined benefit scheme alone.