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Leaving pension scheme

red_llamas
Posts: 16 Forumite
Hi
I really am clueless and could do with some advice. I have tried reading various things, but I still don't know what to do.
I am 25. I have been contributing to USS since Oct 05 (I pay 6.35% employer pays 14%). I will be leaving my job at the end of August and starting a job with the nhs in Sept. So I will have been paying for less than 2 years when I leave.
I'm not sure what to do with my contiributions from my current job. Should I defer or transfer?
I know no-one can answer this question without some more details, but I also don't know what kind of details you need!
Any advice would be gratefully received though
Thanks
I really am clueless and could do with some advice. I have tried reading various things, but I still don't know what to do.
I am 25. I have been contributing to USS since Oct 05 (I pay 6.35% employer pays 14%). I will be leaving my job at the end of August and starting a job with the nhs in Sept. So I will have been paying for less than 2 years when I leave.
I'm not sure what to do with my contiributions from my current job. Should I defer or transfer?
I know no-one can answer this question without some more details, but I also don't know what kind of details you need!
Any advice would be gratefully received though
Thanks
0
Comments
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You need to check with your current company's pension department about their policy for pension membership lasting less than 2 years. Some (like my old company) will insist you remove your money and some will allow you to remain within the pension scheme, but with obviously a closed account.
If they allow you to remain then I would look at the relative merits of remaining with the current scheme or moving the lot to your new NHS one.
If they don't allow you to remain then in some ways this makes your choice easier. You can either move it to the NHS or start your own stakeholder or SIPP.
Hope this helps!Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
[strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!!
● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.730 -
Cheers,
they do let me remain though, so there is still a choice to be made!
I am trying to work out which is the best option but get rather confused.0 -
Both schemes are top quality final salary ones: if you can move the money to the NHS, do so, if not leave it at the USS, especially if you think you might have another university job in the future, and can thus reactivate it later.Trying to keep it simple...0
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There are both members of the Public Sector Transfer Club, so you will get an easy & fair transfer of you acrued USS pension into the NHS scheme0
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Ta
It does seem fairly easy to transfer, and it is more likely that I will stay in nhs rather than go back to a university job.
Thanks a lot0 -
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:eek: hi
im new to this the forum. id like some advice please.
i have had a pension with PEARL for almost 9 years but ive had a
contribution holiday for the last year. i really need to cash it in, but
when i rang, the chap said i can only cash it in when im 55 or if i transfer it. im
wondering if i can cash it in after trasfering it and which companies offer this.
i know i will lose some of the money which is fair enough.
any advice would be much appreciatd. thank you!!
xxxxxxxxxxxxx0 -
You cannot access your pension until age 50 currently, rising to 55 in 2010. even then you can only get 25% of it. Only if you are 60 and the amount is trivial can you get access to all of it (subject to tax).
Pearl pensions are dire. Even though you cannot access it, I suggest you get an IFA to review is ASAP. Pearl V1 (prosperity plans) are in the 6th year of zero bonus and future potential is limited. V2s and V3s have annual management charges higher than the bonus rate.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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