pension merge or not

hunter831

I have three pensions a forces pension and two private company ones is it best to merge the pensions in to one pension or keep them separate?

Lokolo

Depends what the individual pensions are. For example some maybe a final salary scheme so you wouldn't want to transfer it to a defined contribution pension.

hunter831

No not Final salary pensions.

atush

Sorry, but surely the Forces ( i assume military) are FS or defined beneifit schemes. these should in allmost all cases not be merged/changed.

The other 2 could be, but merged into what? Another scheme you pay into now? Or with each other?

Frist, you should have something inplace now. If you don't, sort it.

If you wat to merge2 or 3 diffent schemes, then you must check each scheme as to the rules, charges for such a chenage, and the performance/choice of funds avaialbel for investment.

Basically we need to knwo more to be able to help and I think so do you.

Perangusta_2

I am in a similar position - having 5 pensions, 4 of them are with Aviva, they are all section 32 transfers, their current values are £29k, £18k, £5k, £4.5k, as they are all with Aviva I would presume it would be mutually benificial to combine the four policies (putting them all into the one with the largest capital?) The 4th pension is with Standard Life with a value of £102k I retire in 2 years time but am currently working part time and think I can manage on my state pension plus my part time earnings.

dunstonh

as they are all with Aviva I would presume it would be mutually benificial to combine the three policies (putting them all into the one with the largest capital?)

1 - you cannot do that
2 - your assumption is wrong. It could be a very bad mistake to transfer them or it could be the right thing.

It makes sense to review them and there maybe some scope for improvement but section 32 buy out bonds typically include guaranteed minimum pensions and/or guaranteed annuity rates or enhanced lump sum payments (as they got automatic transitional protection when the rules changed in 2006 that allowed those that pay amount greater than 25% to continue to do so).

Perangusta_2

Thanks for your help