Transfer Out of Company Pension Scheme. Options???

bruff

Hi,

My 1st post so please bear with me.

In the last 6 months I have left my former employer. I am in the process of setting up my own business. I was employed by my former employer for 18 months.

As I did not do 2 years service I will not get a pension scheme with the former employer.

I am now in the process of setting up my own business.

I now need to transfer the money to either a Personal Pension Scheme, a Stake Holder Scheme or a But Out policy.

What are the relative merits of the Stake holder scheme or a Personal Pension plan?

Any 'advice' or experiences that might help my decision.

Cheers,

bruff

dunstonh

What are the relative merits of the Stake holder scheme or a Personal Pension plan?

Stakeholder is a defined charging process that was once very cheap but nowadays isnt. Fund choice is limited (in some cases disgracefully so).

Personal pensions can have different charging methods and can be cheaper or more expensive than stakeholders. Fund choice is usually far greater than stakeholders. Most personal pensions have access to the stakeholder funds on stakeholder charges so there is little reason for doing a stakeholder.

bruff

Thanks dunstonh,

Is the best thing to seek help from a local IFA?

Can anyone recommend a good IFA in Cheltenham?

Jake'sGran

bruff wrote:

Thanks dunstonh,

Is the best thing to seek help from a local IFA?

Can anyone recommend a good IFA in Cheltenham?

You don't necessarily need a local one. Have a look online at people offering SIPPs (self invested pension plans). My son in law is using Hargreaves Lansdown but there are some good people who will give advice and can be accessed via the Internet. (Just enter SIPP providers in Google) My SIL has shares and cash plus other assets in his. I'm no expert but I believe they are quite flexible and a lot of people are using this method after becoming disillusioned with their company or private pensions.

dunstonh

I do believe from a past post that HL will not take the transfer from an occupational scheme, even if its a first 24 month refund of premiums. It is classed under occupational pension transfer rules.

EdInvestor

dunstonh wrote:

I do believe from a past post that HL will not take the transfer from an occupational scheme, even if its a first 24 month refund of premiums. It is classed under occupational pension transfer rules.

But in this case, wouldn't the refund arrive in the first instance as a cheque payable to the employee?

He would then cash the cheque and pay in the new money to the SIPP. You couldn't do it as a transfer as it isn't a pension any more.

dunstonh

I dont know.

We had a thread in the latter part of last year from someone who said HL wouldnt accept it as the scheme wanted to transfer it and not issue a cheque.

clairehi

It depends whether its a transfer value, in which case it will go directly from the old to the new scheme, or just a refund of contributions in which case the OP will get a cheque and the new scheme will not know where its from.