Changing Jobs..... Big Changes to my Pension

lisssa

Hi hope you can help me !!

I currently work for a financial Institution, nearly 21 years service, and am lucky enough to have a non contributary final salary pension ( I beleive these are like gold dust these days!?)

However, have decided enough is enough and am having a complete career change, and am joining up as a police officer ( out of the frying pan eh ! lol)

Im aware the police pension is pretty good, therefore am wondering whether I should consider transferring the funds from my existing pension and 'buying' some years of the police pension.

I know I probably need to get some proper fianncial advice, but not sure who I need to speak to etc to sort this out properly.

Apparently my current pension value is about 210k ? have no idea if this is a large amount or not for a pension value.

Can anyone give me any advice in regards to what I should do / need to consider

Any help you can give, much appreciated

regards

EdInvestor

Apparently my current pension value is about 210k ? have no idea if this is a large amount or not for a pension value.

This is the transfer value. So you need to find out how many years' pension it will buy in the police scheme.

dunstonh

You have to complete a transfer analysis and compare benefits of leaving it where it is against what you will get for transferring it. There are other considerations, such as vesting age and dependents pension as well as index linking and pensionable salary which also need to be taken into account.

clairehi

lisssa wrote:

Hi hope you can help me !!

I know I probably need to get some proper fianncial advice, but not sure who I need to speak to etc to sort this out properly.


regards

You may find it quite expensive to get professional advice on this. As I understand it an IFA would not get any commission on an occupational pension transfer such as this so the would charge you a fee. To do the homework needed to advise you in compliance with the rules would take them a while. I would say you are looking at several hundred £.



Ask your new scheme provider for the transfer-in forms needed to give you an estimate of the transfer-in benefits you could buy. They should also provide you with an estimate of what these benefits would mean for you at retirement.

Ask your old provider for an estimate of what your frozen benefits would be worth at retirement if you did not move them.

You should then be able to make a comparison between the two. However other benefits such as widow/ers pension, death benefit etc also need to be taken into consideration.

Also, if your salary now and at retirement is very different than that in your prevous job, this will also have an impact.