Pension Consolidation

daw123

Hi All
I am 31 and have two dormant corporate stakeholder pensions from previous employers, neither of which are final salary, have no particular perks or complexities
1. Avivia mixed 40 – 85 with a value of £13k
2. Standard life 50 – 50 with a value of £22k
I have started a new corporate stakeholder plan with my new employer but I am uncertain what to do with my two previous plans. I have no doubt that I will change employer again every few years and do not know how to go about determining which is the best personal pension for me to open to consolidate into or whether this is worthwhile.
After spending hours researching on the internet all I seem to find about consolidation leads me towards opening a SIPP – but I know that I don’t need all the features and will be paying for something I don’t need.
Any suggestions and help is gratefully received...
Many thanks!

dunstonh

I am 31 and have two dormant corporate stakeholder pensions from previous employers, neither of which are final salary, have no particular perks or complexities

Neither are dormant either. Dormant status only applies to bank and building society accounts. Not pensions.

After spending hours researching on the internet all I seem to find about consolidation leads me towards opening a SIPP – but I know that I don’t need all the features and will be paying for something I don’t need.

That is the internet for you. I can see nothing in what you say suggesting a SIPP would be suitable.

xylophone

"Paid Up" rather than frozen - see here for explanation.http://www.grove-pension-release.co.uk/frozen-pensions.asp

You could consider transferring both into a personal pension - if you left your current job you could consider transferring your stakeholder into it.

http://www.cavendishonline.co.uk/pensions/transfers-and-repensioning/ might be worth a look or here perhaps http://pluto.moneyadviceservice.org.uk/pensions

https://www.moneyadviceservice.org.uk/en/articles/transferring-defined-contribution-pensions might be worth a look.

bigadaj

You don't need to consolidate them either now or in teh future.

The funds you are invested in are medium risk, so should be fairly safe but not too exciting, you need to work out whether they match your risk profile and potential for growth.

You need to see how much you are currently being charged, and compare it to the options you can transfer to. Also the investment options available and whether you need them.

Annie1960

Nothing wrong with keeping them separate. That could even give you some flexibility to take them at different times when the time comes for you to retire.

I was on a final salary pension, and took early retirement two years ago, taking my main pension. I also have an AVC which I will take soon, and a separate old stakeholder which I will not take for another year or two or some time in the future.

So, as long as the management fees are not too high, you could have as many pensions as you want and take them at different times.