Transfer monies from one pension to another?

Spark

I had a work pension with Clerical Medical for a few years, where my employer contributed a certain percentage into it.
Since he had to offer a new auto enrolment scheme due to the changes imposed by the government, he decided to go with Legal and General.
Now we are asked whether we want to transfer our pension monies from clerical medical to the new L&G scheme.

Is it a good idea to transfer the money or should I leave it where it is, keeping in mind that we were told there won't be any penalties to do so?

I feel it is a gamble, as I don't know which one will give more returns than the other, and I don't know what to do for the best.

jem16

Spark wrote: »

Is it a good idea to transfer the money or should I leave it where it is, keeping in mind that we were told there won't be any penalties to do so?

What are the relevant charges for each scheme? is there any guarantee attached to the original scheme?

I feel it is a gamble, as I don't know which one will give more returns than the other, and I don't know what to do for the best.

The pension is only a tax wrapper and a contained for the investments it holds. The wrapper itself doesn't make or lose money so it's not the provider that's important (apart from the charges) but the investments available to put inside it.

What does each offer in terms of investment funds?

Spark

All what I know is that CM charge 1%, L&G charge 0.5%.

kidmugsy

Spark wrote: »

All what I know is that CM charge 1%, L&G charge 0.5%.

Would you like a pay rise of 0.5% p.a. on your pension contributions?

Spark

As I was explained by my employer, that suppose to be what they charge to keep your money in their coffer, so that would be money they will take off whatever I have in the pot.
That's how I understand this following the explanations of my employer.

jem16

Spark wrote: »

As I was explained by my employer, that suppose to be what they charge to keep your money in their coffer, so that would be money they will take off whatever I have in the pot.
That's how I understand this following the explanations of my employer.

Of course there will be charges.

However the new provider is going to charge half of what your current provider is charging. Do you not want to save half of those fees?

Spark

As I don't know anything about work pensions, I was just looking for possible pointers on what to do.
It is a small pot anyway, so I will move it to the new pension scheme. It will prevent me to have too many little pots all over the place.