Cashing an unwanted pension

Futchinson

Hi
I'm new to this but would love some advise

I took out a private pension some years ago (25) I didn't pay into it for long as I got a job with a company that has an excellent pension

I forgot about this pension I have recently found the paper work and have asked a financial adviser if I can transfer the funds but because there is only less than £2,000 in it her said it wasn't worth transferring as it would all be eaten up with fee's but like wise if I leave it where it is it will eventually been eaten up by yearly fee's!!:(

Is there no way I can get hold of my money??? I don't want to pay any more funds into it.

Am I just to kiss:kisses3: it goodbye???
Many thanks

dunstonh

I forgot about this pension I have recently found the paper work and have asked a financial adviser if I can transfer the funds but because there is only less than £2,000 in it her said it wasn't worth transferring as it would all be eaten up with fee's but like wise if I leave it where it is it will eventually been eaten up by yearly fee's!!

Why do you think it will be eaten up by yearly fees? If the charge is just an annual management charge then it will just be a percentage of the value.

Is there no way I can get hold of my money?

options are to leave it where it is or transfer it to another pension.

Am I just to kiss it goodbye???

No need for that to happen.

Linton

The cheapest way of using the money could be to see if your current employer's pension would accept a transfer-in. You may find that your pension department would be happy to help sort things out at no cost to yourself.

mania112

He means it will be eaten up by the adviser's fees.

dunstonh

Certainly not worth transferring it under advice. However, leaving it where it is or transferring it to occupational scheme would likely be best.

PeacefulWaters

I've just been looking at a similar situation with Mrs PW.

She has two modest pensions, valued at £6k and £4k. They both charge a 1% annual management fee. Their performance investment wise is average. Middle of the range funds producing middle of the range returns.

Her employer's DC scheme is also an average performer. Their annual management fee is 0.05% on most of the funds she has.

She's currently going through the process of transferring the money to her employer's scheme. This should save her £995 over ten years (before transfer costs, and we are waiting to hear those) which, given her modest retirement income target, will allow her to stop working around five weeks sooner than previously planned. The £10k itself, if maintained in value, should give her another year or so of retirement.

One to organise for yourself. Don't pay a financial adviser when all you'll need to do is compare management charges, make a judgement and sign a form with your employer's scheme and they should do the rest.