Transfering an old pension

carbonmonoxide

Hi,

I have just started a stakeholder pension. I previously held an occupational pension with my old employer but have not paid into this now for well over a year. I am wondering if I should transfer this into my current stakeholder or leave it where it is for now. Can anyone advised me of the pros and cons of doing this? many thanks.

dunstonh

Transfer it to what and why?

carbonmonoxide

Transfer the old Occupational pension into my new Stakeholder.

Why? Well I'm not sure if I should. I know nothing about pensions. Would it make sense to put all the in money into one pension? What sort of factors do I need to consider?

EdInvestor

What kind of pension is the old scheme ?Final salary or money purchase?

carbonmonoxide

I haven't got a clue I'm afraid. What is the difference? I really am thick when it comes to pensions!

It was an occupational scheme run by the University where I worked. I guess that doesn't help?

EdInvestor

carbonmonoxide wrote: »

It was an occupational scheme run by the University where I worked. I guess that doesn't help?

If it is the USS scheme, it is one of the best final salary pensions in the country and you should leave it strictly alone.

I really am thick when it comes to pensions!

Why invest in something you don't understand?

carbonmonoxide

EdInvestor wrote: »

If it is the USS scheme, it is one of the best final salary pensions in the country and you should leave it strictly alone.

thanks, I shall check this out and if it is the USS scheme I will leave it where it is.

Why invest in something you don't understand?

I think a lot of people invest in company or stakeholder pensions and don't always fully understand them. I read up on stakeholder pensions and it seemed to be the second best option in lieu of a company pension. As I hadn't saved any money for my retirement for over a year since leaving the University I thought I should act sooner rather than later.

I wanted an ethical pension so went through an ethical IFA who recommended a stakeholder pension to me. If the pension does not perform as well as it should he will recommend another pension. Going through an IFA seemed the sensible thing to do as I do find pensions very confusing.

Dithering_Dad

Hi CM,

You should always check the terms and conditions of your exisitng pension before you transfer it elsewhere.

The "why invest in something you don't understand" statement seems a tad harsh. Not everyone has the time or inclination to study the markets and make reasoned investments, but folks still need to save for their retirement. I'm also in the "not interested in becoming a stockbroker" camp so have started a Legal & General stakeholder and invested in the Global Equity 70:30 fund. That's it, there it lies until I retire. I arranged it through Cavendish to reduce the AMC to 0.30%, none of my hard earned money to stockbrokers or Financial Advisers for me thanks.

carbonmonoxide

Thanks DD - that sounds like a good idea to go through Cavendish, wish I had thought of that one. Still, I am happy with the service the IFA provided and as they give half their profits away to charity I would rather them get the fee then the pension company retaining it!

clairehi

carbonmonoxide wrote: »

I
It was an occupational scheme run by the University where I worked.

Chances are it is a final salary scheme (could be USS, TPS, LGPS or another maybe?).

If so, you should leave it where it is unless you ever join another public sector final salary scheme at which point you should review the situation.