Transfer pension

garyfg

My company was bought out by another company last July. I have 33 years pension (final salary) with the old company & have started in a new scheme with the new company. I have been asked if I want to transfer my 33 years into the new scheme but I no longer earn the salary I did with the previous company. I have had a quote from the old pension provider & it is several thousands of pounds more a year than if I transfer all my funds to the new one. I have now lost shift allowance etc& it will be based on my best salary in the last 10 years.Should I leave the pension with the old scheme & just move on with the new one? I am 50 this year. Thanks for any help

DavidLaGuardia

An old pension may increase the salary with inflation which may not be as much as the increase in earnings.

Having said that, if the difference is large and/or you are closer to retirement and unlikely to raise your income significantly it may be best to leave the old one where it is

thenudeone

If it's a final (or average or last 10-years) salary-based scheme you should get an IFA to evaluate the options.

33 years service in such a scheme (even on a modest salary) is a very valuable asset and to buy anything like it on the open market would probably cost well into six figures.

So IMO it would be worth paying a professional to ensure that you get the best value.

BTW I am not an IFA!