where to transfer my pension scheme (from my previous employer) ?

home2013

I have received a letter from my previous employer pension management company that I should transfer out my retirement account which is worth £5500.

They have also sent a transfer application which I have to fill out. When I received that letter last week I know nothing about it. Googling about it only confuses me rather than helping me


Note:
1. I don't have pension with my current employer so that option is ruled out. Also I don't have any idea of starting pension with my current employer soon.
2. Advisers I have talked with said we deal only if it's more than 10K, 30K, etc
3. Not anywhere near the age of withdrawal as well.

Can someone please help me understand what are all options available to me?

Who should I contact? Insurance companies?

I just would like to keep this money safe somewhere without incurring much charges Thanks.

Your_Hero

Why are they asking you to transfer out? Is this compulsory?


First thing to do is to find out what type of pension it is. Is it a defined benefit (DB) or defined contribution (DC) pension?

xylophone

If your current employer is not currently offering a pension, he may soon have to.

https://www.gov.uk/workplace-pensions

What exactly does the letter say from the management company say? How long were you employed by the company?

home2013

Your_Hero wrote: »

Why are they asking you to transfer out? Is this compulsory?

First thing to do is to find out what type of pension it is. Is it a defined benefit (DB) or defined contribution (DC) pension?

Yes it is compulsory as I have been not with them for at least 2 years. (Looks like I've signed terms and conditions earlier to accept it )

I don't know whether it is DB or DC. It says you can transfer out the whole Retirement account to an alternative pension arrangement such as a persional pension or sipp.

Is there any company providing personal pension where I can only transfer out this 5.5K ? I tried virgin money but it asks to pay me from Debit card where as I would like that to be transferred from my previous employer, any ideas?

home2013

xylophone wrote: »

If your current employer is not currently offering a pension, he may soon have to.

https://www.gov.uk/workplace-pensions

What exactly does the letter say from the management company say? How long were you employed by the company?

This letter also says I should within a month or will be losing all the benefits. I know it's terrible but I have no much choice.

SomeUser

It is correct that if you have more than 3 months and less than 2 years service, the statutory requirements are that you are offered a transfer or a refund of contributions.

If you don't exercise the transfer, you will get a refund of contributions.

Even if you hadn't signed the t&cs, those are the requirements although usually you'd be given 3 months to exercise your rights to a transfer.

I would expect any bog standard personal pension to be sufficient. Scroll down a little on this page to item 12 and it gives you some providers to contact http://www.moneysavingexpert.com/savings/discount-pensions#howdo

kidmugsy

http://monevator.com/cheapest-pension-diy/

xylophone

http://www.cavendishonline.co.uk/pensions/transfers-and-repensioning/
might be of use.

home2013

SomeUser wrote: »

It is correct that if you have more than 3 months and less than 2 years service, the statutory requirements are that you are offered a transfer or a refund of contributions.

If you don't exercise the transfer, you will get a refund of contributions.

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Thanks for link.

The letter also says I will lose out all the benefits if I dont transfer which is terrible. Can you please point me to some document (I tried finding but couldn't) where it says I can get a refund so that I can phone ''capita'' and ask about the refund which seems easier option otherwise most of the companies ask me to talk to IFA first where they are talking about commission, yearly fees, etc, looks like I will anyway lose out this whole 5.5K in long run :mad:

home2013

xylophone wrote: »

http://www.cavendishonline.co.uk/pensions/transfers-and-repensioning/
might be of use.

Cavendish Online does not offer transfers from occupational or defined benefit schemes

I think mine is occupational scheme (it doesn't say what scheme in the letter).

xylophone

What is the name of your previous pension scheme?