Transferring existing pension

annaworm

I recently left my job where I was part of their pension scheme, now I am self employed and I need to set up a new pension so I can transfer my previous pension to this. I need advice on which pension scheme to go for - any help would be appreciated.

dunstonh

so I can transfer my previous pension to this.

Quite possibly, yes. It really depends on the type of scheme operated by your employer. Defined benefit schemes and some money purchase schemes require an IFA to sign off on them first. Group personal pensions and some money purchase schemes do not.

I need advice on which pension scheme to go for

The one that is most suitable for you. I know that is a corny answer but there is no one-size-fits-all best pension. So, we cant tell you which is best. The one that suits the type of investments you want, the way you want to invest now and future, the features you want, the amounts involved etc

It is also worth noting if you are not already aware that the self employed get lower state pensions than the employed currently. So, it is vital to make sure you factor that into your provision. A lot of self employed people don't realise this.

xylophone

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073868310
Was the old pension a final salary/defined benefits scheme? If so you'd need an IFA to sign it off and since such schemes tend to offer excellent benefits even in deferment, you'd be hard put to find an IFA to agree the transfer.
http://www.talktalk.co.uk/money/pensions/guide2.html
http://www.pensionsadvisoryservice.org.uk/workplace-pension-schemes/final-salary-schemes/transfers

annaworm

Thanks for your replies.
I have received a letter of notification from the pension company stating I must transfer the balance otherwise I 'will not be able to claim payment from the plan at a later date'. The scheme is titles 'Group Retirement Plan - Defined Contribution Section'. The letter doesn't mention signing off the transfer by an IFA.

Thanks for the point about self employed pensions being less - that is something I wasn't aware of.

Thanks for links too - I will study those and hopefully find a solution to my dilemma

jem16

annaworm wrote: »

I have received a letter of notification from the pension company stating I must transfer the balance otherwise I 'will not be able to claim payment from the plan at a later date'.

How long were you in the previous scheme? Possibly less than 2 years?

The scheme is titles 'Group Retirement Plan - Defined Contribution Section'. The letter doesn't mention signing off the transfer by an IFA.

It's only Defined Benefit schemes ( ie final salary) that require signing off by an IFA.

annaworm

yes, I was part of the scheme for less than 2 years