What to do with my pension fund?

karlos100

Up to a few years ago i was paying a small amount into a pension with my bank. Ive since fallen out with the said bank and moved to another and left my stake holder pension sat dorment. There is only 4k in there-im still only young. I was wondering what i can do with it. Wether to transfer it to my current bank in a pension scheme or can i use it for making interest somehow by switching it about. I know nothing about pensions except people generally say they are not worth having anymore!!

dunstonh

Wether to transfer it to my current bank in a pension scheme

most banks do not do pension transfers. Those that did got hammered on the pension switch thematic review. Also, buying a pension from a bank is not the best option.

e or can i use it for making interest somehow by switching it about.

Pensions use investments. You dont get interest (directly). It is not a savings account. That statement indicates that despite seeing two banks, you don't know about your pension. That just shows how poor they are.

I know nothing about pensions except people generally say they are not worth having anymore!!

Generally people that don't have one and are trying to look for an excuse to not have one.

Loughton_Monkey

If you do nothing, the very small pension pot will continue to 'grow' [or fall] according to the values of the underlying investments.

You need to know that bank products are usually very poor value. It would normally be worth considering transferring them out to alternative better value arrangements. I would not expect this to be with another bank.

It occurs to me that you have bought something which you know nothing about. Pensions can be a difficult subject, but basically they are very simple. You have received tax relief on whatever you paid in. So your money invested was 25% higher than your cost of contributions.

The £4,000 you have in the scheme is (almost certainly) invested in funds. These funds would be available in most pension arrangements [or to be correct similar funds] but possibly with lower charges. Your money will grow primarily according to your choice of funds, and also according to the charges.

When (if) you transfer it [or even if you don't] it would be an excellent start if you tried to understand what funds you are invested in, and what charges apply.

I would not agree that 'Pensions are not worth having any more.' This is normally said for two reasons. Firstly, there have been some mis-selling scandals in the past, but these are not expected to be repeated. Secondly, there is a lot of ill-informed speculation about stock market (fund) growth and alarmist comments over 'charges'.

This is quite an ironic view to take. You see now that State Pensions are set to become later and smaller (in real terms), and that employers have tended to cut down the amount of contributions they make on behalf of employees, the importance of the need to save for retirement has never been higher.

There is, in addition, a lively debate over the degree to which Stocks & Shares ISA's can be a better way to provide for retirement. There are pro's and con's in this debate, but the true answer for many people is probably do a bit of both.

However, the key point I would implore you to believe is that saving for retirement is extremely important. How you do it is a different matter, but the most efficient and practical ways tend to involve pensions and Stocks & Shares ISA's.

bendix

Cash it in, OP. It's very simple. Spend it on a holiday instead, and don't worry about the future.

karlos100

bendix wrote: »

Cash it in, OP. It's very simple. Spend it on a holiday instead, and don't worry about the future.

Id love to but you cant can you?

bendix

Sure you can. Tell them bendix from MSE sent you. They know me.

Bigsmak

bendix wrote: »

Sure you can. Tell them bendix from MSE sent you. They know me.

If its not moaning about people trying to cash in their pensions early, its moaning about people who don't want to cash in their pensions early.

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:beer:

Loughton_Monkey

Bigsmak wrote: »

If its not moaning about people trying to cash in their pensions early, its moaning about people who don't want to cash in their pensions early.

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:beer:

Come on. Give the guy a break. Bendix has just returned from a nice holiday in Thailand. Catching up on the latest on UK House prices, and preparing the ground for cashing in his pension.

Probably still 'relaxed' after all those massages.

Take on a new 'identity' for MSE, and post a message [something like "My stupid bank has made me overdrawn and charged me overdraft fees..... So I desperately need to sell my pension.... do I just write to the pension company?....."] That'll prove if he still has the 'metal' of old.

bendix

Loughton_Monkey wrote: »

Come on. Give the guy a break. Bendix has just returned from a nice holiday in Thailand. Catching up on the latest on UK House prices, and preparing the ground for cashing in his pension.

Probably still 'relaxed' after all those massages.

Take on a new 'identity' for MSE, and post a message [something like "My stupid bank has made me overdrawn and charged me overdraft fees..... So I desperately need to sell my pension.... do I just write to the pension company?....."] That'll prove if he still has the 'metal' of old.

I've taken the view that providing the right information isn't what people want to hear - it doesn't fit their worldview.

So, I'm going to tell people what they want to hear from now on. It doesn't matter. We're not financial advisors - we're not responsible for people acting on wrong advice.

The forum is a hotbed of idiots giving cretins crap advice and nebulous moral encouragement . . "don't worry, get into debt and go bankrup - it's the modern way." Or that whole MSE raison detre . "Go overdrawn, and then claim money back from the bank when they have the gall for charging your - dear consumer - for the right to use their money without asking them."

Or: "Give up your pride and go on the benefits . . you know it makes sense."

I'm just toeing the party line.

Bigsmak

bendix wrote: »

I've taken the view that providing the right information isn't what people want to hear - it doesn't fit their worldview.

So, I'm going to tell people what they want to hear from now on. It doesn't matter. We're not financial advisors - we're not responsible for people acting on wrong advice.

The forum is a hotbed of idiots giving cretins crap advice and nebulous moral encouragement . . "don't worry, get into debt and go bankrup - it's the modern way." Or that whole MSE raison detre . "Go overdrawn, and then claim money back from the bank when they have the gall for charging your - dear consumer - for the right to use their money without asking them."

Or: "Give up your pride and go on the benefits . . you know it makes sense."

I'm just toeing the party line.

Not sure whether to laugh or cry at this!

might do both!