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Pension confusion

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webdigga
webdigga Posts: 55 Forumite
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in Pensions, annuities & retirement planning
Hi,

A few years back I got a pension with work through Norwich union (Aviva) which my company also contributed to.

A couple of years ago I was in another job and eventually a few months ago I was auto-enrolled into a pension with Scottish Widows, which I elected to opt-out of as I knew I would be leaving the company soon. After leaving I still receive correspondence from Scottish widows and my companies contributions still exist in the pension.

6 months or so ago I started a new company which again I was auto enrolled, this time with Standard life.

So now I have 3 pensions with 3 different providers and I'm not overly keen on this. I see that I am going to amass a lot of pensions over the years each and every time I move to a new company.

I asked my newest provider to transfer in the other 2 but they couldn't do one of them because it was less than £1000, and with the other they gave me 10 questions which I had to confirm with the other provider first before I could make the transfer.

To be honest I am starting to regret ever having a pension as I would rather that money be in my savings account but does anyone have any suggestions about what I can do to easily get all this money in one place and also what I can do to prevent all this happening in future.
Am I allowed to choose my provider to which my new future company will contribute to or am I forced into them picking for me?

Thanks
David
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  • Cyberman60
    Cyberman60 Posts: 2,472 Forumite
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    My advice would be to consider a SIPP (Self invested personal pension) and transfer the value of smaller pots into one, and thus handle your own investments.
  • dunstonh
    dunstonh Posts: 116,717 Forumite
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    To be honest I am starting to regret ever having a pension as I would rather that money be in my savings account

    You wouldnt have the money in the savings account though as you wouldnt have got the employer contribution and you wouldnt have got the tax relief. 20-30-40-50-60-70 years in a savings account is a totally barmy idea.
    does anyone have any suggestions about what I can do to easily get all this money in one place and also what I can do to prevent all this happening in future.
    you can transfer them into an individual personal pension. A stakeholder may be suitable if the amounts are low. A personal pension may offer better value. Its highly unlikely a SIPP would be suitable for you.

    Am I allowed to choose my provider to which my new future company will contribute to or am I forced into them picking for me?

    no
    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.
  • Cyberman60
    Cyberman60 Posts: 2,472 Forumite
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    So why is a SIPP no good for him ? I use one.... is it because commission rates are low... :rotfl:
  • greenglide
    greenglide Posts: 3,301 Forumite
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    Cyberman60 wrote: »
    So why is a SIPP no good for him ? I use one.... is it because commission rates are low... :rotfl:
    Because it is "Self Invested ...."?

    If the OP is looking for an "easy" option then an "off the shelf" solution would appear to suit?
  • Cyberman60
    Cyberman60 Posts: 2,472 Forumite
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    greenglide wrote: »
    Because it is "Self Invested ...."?

    If the OP is looking for an "easy" option then an "off the shelf" solution would appear to suit?

    Not difficult though is it, and he may find it fun apart from being a much cheaper option. ;)
  • dunstonh
    dunstonh Posts: 116,717 Forumite
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    edited 6 October 2014 at 5:20PM
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    Cyberman60 wrote: »
    Not difficult though is it, and he may find it fun apart from being a much cheaper option. ;)

    He may make a complete pigs ear of it. his comments suggest a complete lack of knowledge and understanding and possibly no patience when it comes to investing (based on the wish i never did pension comment)

    Generically, SIPPs are the more expensive option designed for the more experienced investor looking to utilise investment options not present in stakeholder or personal pensions. Exceptions can apply but nothing in the OPs post suggests SIPP is suitable.
    is it because commission rates are low

    What is this commission that you refer to?
    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.
  • webdigga
    webdigga Posts: 55 Forumite
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    Yes you are correct I do have a complete lack of knowledge! :-)

    My comments were more to do with that I like to feel I have complete control over my finances and I would rather not have small amounts of money in lots of laces that by the time I come to retire I may well have forgotten about. Would much rather have it all in one I can keep checking.

    Thanks very much for the replies, I shall do some more reading!
  • Linton
    Linton Posts: 17,250 Forumite
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    Cyberman60 wrote: »
    Not difficult though is it, and he may find it fun apart from being a much cheaper option. ;)

    Is a SIPP "a much cheaper option" than a personal pension? Particularly with what would seem to be a very small pot.
  • webdigga
    webdigga Posts: 55 Forumite
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    Ok so having read up a little of what you have been mentioning, am I right in thinking that the issue of not being able to transfer my old pensions into my current company pension because the funds are not high enough, would not be a problem if I created a personal pension?

    Therefore it would enable me to always have 2 pensions, a personal one and a company one, and each time I move job I have a new pension created and then I transfer the previous companies pension into my personal one, always leaving me with 2 pensions?

    Hope that makes sense....
  • atush
    atush Posts: 18,730 Forumite
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    Cyberman60 wrote: »
    So why is a SIPP no good for him ? I use one.... is it because commission rates are low... :rotfl:

    It is unsuitable for those who know nothing aobut investing. Clearly the case here, as he wants the money inb his savings account?
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