Pension quandary

the_sulphur_man

Hi,

I have recently changed jobs, and have had a letter from my previous company's pension scheme giving me 12 weeks to either:
- transfer my pension
- take a refund, less tax and employer contributions

However, my new company won't allow me to transfer in until I've done two years' service.

I worked at my previous company just over a year, so the transfer value is around £4,500, of which about 22% is my own contributions. Also, for information, I am under 30, and it is the first scheme I have entered.

I realise this is a small amount of money in the world of pensions, and I have plenty years ahead before it really matters, but I'm reluctant to just lose it. I have enquired about transferring it to a private scheme but been told it's not worth it for this amount.

Obviously there's a limit to what can be said on here without constituting advice, but if anyone knows more than I do (shouldn't be hard ) then I welcome your comments.

Thanks!

xylophone

http://www.pensionsadvisoryservice.org.uk/personal-and-stakeholder-pensions/stakeholder-pension-schemes/shopping-for-a-plan
See Q&A
Could you transfer to a stakeholder Plan?

the_sulphur_man

xylophone wrote: »

See Q&A
Could you transfer to a stakeholder Plan?

Thanks for the reply. I guess that is an option.

Given that I am paying into my new employer's scheme, would it be mandatory to also pay into such a plan? Or could I simply transfer in and leave it until I have two years' service with my new company?

jem16

the_sulphur_man wrote: »

Given that I am paying into my new employer's scheme, would it be mandatory to also pay into such a plan? Or could I simply transfer in and leave it until I have two years' service with my new company?

You don't have to pay into the stakeholder.

Just transfer and then look at your options later.