More than one pension transfer???

Cliecost

Hi,

I am nearing my end at a company I work for.

When I joined them they had a simple pension where what I put in they matched it. Then, when pensions became a requirement, they changed it slightly and moved to a different provider.

When they were making the change the said they would be doing a bulk transfer from the old pension to the new one but, you have to opt in. Due to a death in the family my head wasn't in it and I missed the transfer.

So now I have this old pension that isn't doing anything and a new one that is growing in the normal way.

I am now leaving the company and going to a new one that also has a pension plan in place.

Is there any way of moving these 2 that I have to my new company so it's not all fragmented?

If that's a stupid question I apologise lol I know absolutely nothing about pensions just that I need one and the more I pay in the better! :rotfl:

Thanks.

Linton

I assume all your pensions are Defined Contribution and not Defined Benefit ("final salary"). If they are DB, ignore everything I say!

Your old pension should still be increasing in value in line with its investments. So there is no problem in principle with having several old pensions. The real question is whether the terms of your new employer's pension (eg charges, range of funds) are better than the old one(s). You will need to research this. You may find that deferred pensioners(which is what you will be) get a worse deal than current employees.

If it looks sensible the easiest thing to do will probably be to talk to your new employer's pension people after you join. They will probably be helpful in arranging a transfer-in as the company will be keen to keep you happy.

Cliecost

Linton wrote: »

I assume all your pensions are Defined Contribution and not Defined Benefit ("final salary"). If they are DB, ignore everything I say!

Your old pension should still be increasing in value in line with its investments. So there is no problem in principle with having several old pensions. The real question is whether the terms of your new employer's pension (eg charges, range of funds) are better than the old one(s). You will need to research this. You may find that deferred pensioners(which is what you will be) get a worse deal than current employees.

If it looks sensible the easiest thing to do will probably be to talk to your new employer's pension people after you join. They will probably be helpful in arranging a transfer-in as the company will be keen to keep you happy.

Thank you very much.

Do you think the new pension company would be able to tell me if it's worth moving it over?

kidmugsy

Cliecost wrote: »

Thank you very much.

Do you think the new pension company would be able to tell me if it's worth moving it over?

I doubt that they're permitted to give advice: that's a highly regulated activity. If both your existing schemes are DC there are only two things you need to compare.

(i) Establish what the charges are for the old schemes once you are a "deferred member" instead of an "active member". Then compare those charges to those of the new scheme.

(ii) Compare the choice of investments available.

Cliecost

kidmugsy wrote: »

I doubt that they're permitted to give advice: that's a highly regulated activity. If both your existing schemes are DC there are only two things you need to compare.

(i) Establish what the charges are for the old schemes once you are a "deferred member" instead of an "active member". Then compare those charges to those of the new scheme.

(ii) Compare the choice of investments available.

Will they keep in contact with me and know that I have left the company?

Would it not be worth it to consolidate them for ease or (if the charges permit) is it better to keep them separate?

kidmugsy

Cliecost wrote: »

Will they keep in contact with me and know that I have left the company?

Would it not be worth it to consolidate them for ease or (if the charges permit) is it better to keep them separate?

You should always keep them up to date with your address and marital status.

We have reached the age where I'm under strict instruction to simplify, and simplify again. You are probably younger! There's a potential advantage in being diversified between different providers. In your shoes I suspect that if the new scheme has the lowest charges it might be best to put them all together, though I admit I was into my sixties before I started to do that.

Remember: if the issue is finely balanced it doesn't much matter which you do.