Transfer to People's Pension?

tanyat

Have fund value of £6000 in formerly protected rights benefit pension fron L&G which is no longer in use, Now have a people's pension. Should I transfer into people's pension? Grateful for any advice. 12 years to retirement.

jamesd

What investments do you want to use? What is the cost of holding those investments in each place, if they are available?

In general the answer is that the investment you want to use is not available at the People's pension because it has an extremely limited range of investments available. Of the investments it has the ones it calls "Global Investments" from its "Self-select" range is least bad for increasing the value of your pension money. they charge 0l.5% a year for that, deducted from the value each month in the background. You can get such funds elsewhere for half that price.

Another thing you should do at the People's Pension is turn off what they call a "glidepath" that will move your money gradually into investments that won't grow much starting 15 years before the age you say you want to retire, costing you a substantially lower pension. It's a great way to waste your money. They lie saying that the investments are more "secure" when all that it really means is that they grow less and how lower ups and downs. The investments are no less secure.

In general because of the low range of investments and the relatively high cost for their limited range of tracker funds I'd suggest moving to a place other than the People's Pension, though it's OK as an auto-enrollment choice to get any employer matching money.

xylophone

You might check the fees on your L&G and compare with a cheap stakeholder - if you transferred into a stakeholder, you could add/stop/start contributions and build up tax relieved savings that could be accessed earlier than your work pension?

http://www.moneywise.co.uk/pensions/managing-your-pension/the-best-pension-providers-2014

http://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/