Two small pensions

tim131

Hello there,

I used to live in the UK, I worked in two jobs that offered me pensions, one is with Legal and General for £1100 and the other with aviva, not sure the amount, but would be similar I'd say.

Not a huge amount as you can see, I don't really know what to do with them as have no ideas how pensions work.

Can I merge them into one? Can I cash them?

I am moving to the USA very soon, where I plan on doing a 401k, can I transfer it into this?

I am 24, but want to start the pension game early, I am reasonably clued up on the US pensions, 401k and IRA's - I just don't know what to do with the two I have.

They combined are a small amount, if I transferred it elsewhere could I contribute into it, send a 100dollars a month or something into it? Just so I have a small Sterling pension when I retire, which may be a good thing, with exchange rates etc.

Any advice for a 24 year old finally trying to do the right thing and plan for the future, would be truly appreciated.

Tim

jem16

tim131 wrote: »

Hello there,

I used to live in the UK, I worked in two jobs that offered me pensions, one is with Legal and General for £1100 and the other with aviva, not sure the amount, but would be similar I'd say.

Not a huge amount as you can see, I don't really know what to do with them as have no ideas how pensions work.

Can I merge them into one?

Are they both Defined Contribution schemes?

Can I cash them?

No - you have to be at least 55 to do that and only 25% at the moment although that's changing next April. Won't help you though.

I am moving to the USA very soon, where I plan on doing a 401k, can I transfer it into this?

You probably could - research QROPS. Here is a starter for you;

https://www.gov.uk/government/publications/list-of-qualifying-recognised-overseas-pension-schemes-qrops

They combined are a small amount, if I transferred it elsewhere could I contribute into it, send a 100dollars a month or something into it? Just so I have a small Sterling pension when I retire, which may be a good thing, with exchange rates etc.

You could leave them where they are. As far as I'm aware you could still contribute to them but you wouldn't be eligible for tax relief after a while.

This might help a bit.

http://www.scottishwidows.co.uk/Extranet/Literature/Doc/FP0322

jamesd

Unless it is an occupational defined contribution pension scheme you probably won't be able to transfer it to the US system. There are significant legal incompatibilities between the systems. Even if it was possible the costs would be prohibitive for the small amounts involved, so forget about doing it.