Transfer or preserve

pambrian

Not sure what to do. I'm 40 and have 18yr Government Superannuation pension and have now changed employment to NHS- this is also a superannuaton pension but I am unsure as to transfer the value of my benefits to new pension or leave them Please advise me

dunstonh

but I am unsure as to transfer the value of my benefits to new pension or leave them Please advise me

Firstly, we cannot advise you. That advice is regulated by the FSA and it is impossible to give advice like that on an open forum like this. What we type here is opinion and discussion. Not advice. If you act on anything written at this website, you have no protection from the FSA or FOS.

So, discussion...... You find out which one gives you the most benefits. Then you go with the option that is best.

That will mean giving the NHS scheme the transfer details of the old scheme and asking them what they will offer you for it. You then compare that to the old scheme.

It isn't just monetary values you should look at either. There may be a difference in retirement age or accrual rate even. There may also be a difference on how they treat early retirement.

silverfoxuk

Would be worth speaking to an IFA about this, ideally one qualified at AFPC level with G60 - see http://www.unbiased.co.uk/independent-financial-advice/qualifications/ for details of qualifications. As ther'll be no product commision to recompense the IFA for his/her time in this instance, perhaps you could agree a fee with the IFA to review your options and make recommendations. As a guide, one IFA in Edinburgh who is ex-NHS and specialises in pensions charges a fee of £200 for a review of your NHS pension and recommendations. Ther might be more cost for the admin involved in transfer. Maybe a local IFA would give you a quote?

I'd look into it before April 2008 as there will be changes to the current NHS superannuation scheme then, certainly for new members, but may also affect how transfers are dealt with eg can you transfer into the nhs superan scheme on the old terms (final salary) after the new scheme (average salary) comes into being?

It's a big decision and public sector superan is reasonably complex with several variables to take into account when deciding to transfer or not. If you speak with an IFA who puts his recommendation to you in writing, at least you'll have some come back 10 years down the line if the decision a bad one. That option won't be available to you if you make your own decision. Having said that, if you know your stuff and are confident of making the right decision you could save yourself a few bob by doing it yourself.