Old pension funds...what next?

abc123456

About 23 years ago as an 18 year old, I opted out of SERPS and took a personal pension plan. As I recall, everyone at work took it, with little or no advice being given. I always recall that we were all literally railroaded into it, although proving that now is impossible.

I contributed the fund for a little over a year, then moved jobs and into a works pension fund. The original pension fund has not been contributed to since then and currently stands at around £1900.

Having recently done some financial "tidying" up, I enquired with my present pension company as to what to do with the old pension funds. I was told that I could sign it over to them and they would accept it.

However, the pension company who have the funds want an accredited FA to do the paperwork at an estimated cost of about £750.

This seems a big rip off and surely not correct. or is this just a reflection of the huge profits at others expense in this financial system?

Any advice on what steps (if any) to take next would be appreciated.

dunstonh

I always recall that we were all literally railroaded into it, although proving that now is impossible.

And seeing as you were the best age to contract out and given the benefits you get from it compared to being contracted in, it was probably a very good thing to do.

However, the pension company who have the funds want an accredited FA to do the paperwork at an estimated cost of about £750.

This seems a big rip off and surely not correct. or is this just a reflection of the huge profits at others expense in this financial system?

Given your knowledge of the workload, cost of running an advisory firm and the liability for such a transaction, why do you think it is a rip off?

xylophone

why do you think it is a rip off?

Possibly because the fee represents nearly 40% of the value of the fund?:eek:

FatherAbraham

abc123456 wrote: »

I contributed the fund for a little over a year, then moved jobs and into a works pension fund. The original pension fund has not been contributed to since then and currently stands at around £1900.

Having recently done some financial "tidying" up, I enquired with my present pension company as to what to do with the old pension funds. I was told that I could sign it over to them and they would accept it.

However, the pension company who have the funds want an accredited FA to do the paperwork at an estimated cost of about £750.

<ill-advised rant about the cost of financial advice suppressed>

Any advice on what steps (if any) to take next would be appreciated.

Any particular reason why you want to move it?

One next step would be to do nothing, and leave it where it is until it matures. This would apparently save £750 or so.

Warmest regards,
FA

abc123456

FatherAbraham wrote: »

Any particular reason why you want to move it?

One next step would be to do nothing, and leave it where it is until it matures. This would apparently save £750 or so.

Warmest regards,
FA

I was told it would be worth about £4 a month when it matured in about 20 odd years time. It seems a lot to have now, but hardly anything in many years time. Whole thing is just a rip off, really !

dunstonh

Possibly because the fee represents nearly 40% of the value of the fund?

Consequences of RDR. Why should someone with £100,000 pay much more than someone with £10,000?

It makes it an unfortunate and unavoidable situation. It does not make it a rip off.

Whole thing is just a rip off, really !

No its not.