Any benefit transfering my pension?

Mishomeister

I have recently changed jobs and was wondering if it is worth transfering my pension pot(About 12k) from my previous employer to the new one?

I was on defined contribution pension and the new one is final salary pension.

Thanks a lot

xylophone

Will your new scheme accept a transfer?

What is the CETV of the old plan?

What will it buy in the new scheme?

Would you prefer to keep the old scheme/transfer it to a PP for future flexibility?

https://www.hl.co.uk/partners/search/new-pension-rules-changes-2015?theSource=PCGSI&Override=1&adg=G+SIPPENI+BDG&gclid=CNHh75im-MICFXHLtAodcyUA7A might be worth a read.

And re state pension https://www.gov.uk/new-state-pension/overview

Mishomeister

xylophone wrote: »

Will your new scheme accept a transfer?

Yes it will

xylophone wrote: »

What is the CETV of the old plan?

What is CETV?

xylophone wrote: »

What will it buy in the new scheme?

Have no idea.

xylophone wrote: »

Would you prefer to keep the old scheme/transfer it to a PP for future flexibility?

What is PP?

dunstonh

This is a case of comparing what you have with the alternative to see which is best. We dont know the terms of your existing plan and dont know the terms of the alternative(s) you are looking at. So, its impossible for anyone to give you an answer on the internet.

Mishomeister

dunstonh wrote: »

This is a case of comparing what you have with the alternative to see which is best. We dont know the terms of your existing plan and dont know the terms of the alternative(s) you are looking at. So, its impossible for anyone to give you an answer on the internet.

What info would you need/find sufficient in order to be able to assist?

jem16

xylophone wrote: »

What is the CETV of the old plan?

I thought a CETV only applied to Defined Benefit transfers?

As the OP is transferring from a Defined Contribution plan, the transfer value is simply the value of the pot.

The only way you can find out what it will purchase in the final salary scheme you are moving to is to request a transfer. You are not committed to transferring it so that's the best thing to do.

greenglide

.... so you ask the new scheme the old scheme would buy. When they tell you (it can take a while) then you decide if it is a good deal or not.

The new scheme will want to know the old scheme details and they will obtain the value from them.

xylophone

thought a CETV only applied to Defined Benefit transfers?

Yes - should have said transfer value.

the transfer value is simply the value of the pot.

Unless there is any charge for transfer or or other considerations?

https://forums.moneysavingexpert.com/discussion/5145310 post 1


OP, a PP is a Personal Pension.

Mishomeister

Perphaps I should've been more specific in my question.
I know that Final salary pensions are better that defined contributions etc but is there any benefit of transfering Defined contribution pot in to Final salary scheme?
Or is it simply about which shares the money is invested in to?

xylophone

https://www.moneyadviceservice.org.uk/en/articles/defined-benefit-schemes

https://www.moneyadviceservice.org.uk/en/articles/defined-contribution-pension-schemes

jem16

Mishomeister wrote: »

Perphaps I should've been more specific in my question.
I know that Final salary pensions are better that defined contributions etc but is there any benefit of transfering Defined contribution pot in to Final salary scheme?
Or is it simply about which shares the money is invested in to?

Moving it to a final salary scheme will basically give you a guaranteed set of benefits as opposed to your pension pot being subject to investment risk.

However the rules of the DB scheme may be less good if you are considering retiring earlier than the scheme's normal retirement age and that's where you could find the DC scheme useful.