Switching pension provider

welshgasman

Hi everyone,

I asked a short while back about my MN pension.

https://forums.moneysavingexpert.com/discussion/5285191

I have recently been talking with an old neighbour who has worked in the pension industry for years and is now retired.

He has advised to switch out of this pension if possible. (I have yet to discover if this is possible until Monday) as the pension has a dependant pension with it, but as I am single he is advising I would get a better pension to switch to another provider and obtain a pension solely for myself, no dependants?

Due to a mixup with the pension provider not actioning my instructions by email, I have had to request a calculation as at 1st October, but this error on their part might work in my favour if I can switch out.

Again i am just looking for peoples thoughts on this idea and even any recommendations as to pension providers who would give a decent return on this pension for a single person.?

TIA

atush

Pension providers DONT provide a return. They give you access to a platform, and you choose the investments to go into the pension from the ones available on that platform.

If choosing investments is beyond you, you need to engage the services of an IFA (you'll need one anyway to transfer a DB pension).

It remains to be seen, from what little you have provided apart from no dependents, that you would be better off in a DC pesnion rather than taking your DB pension.

What other income do you have? Are you still working? What other savings and investments

dunstonh

I have recently been talking with an old neighbour who has worked in the pension industry for years and is now retired.

How long ago retired? What role did he do?

For example, if he was an old insurance agent for a life company then he would have viewed pensions as a product with possibly only one fund. If he was an old IFA then could also have that view but if more recently retired then he could view pensions as a tax wrapper. If he was in occupational pensions then he is unlikely to have much info on retail pension schemes.

He has advised to switch out of this pension if possible. (I have yet to discover if this is possible until Monday) as the pension has a dependant pension with it, but as I am single he is advising I would get a better pension to switch to another provider and obtain a pension solely for myself, no dependants?

Ignoring the fact that he is not authorised to give advice....

What type of pension is it? It sounds like it is a defined benefit scheme as that is the only type that is mandated to give a dependants pension. However, the historic stats on transferring those is that only 1 in 10 are suitable for transfer as the alternatives wont or are unlikely to meet the same benefits. as your old neighbour done a cost/benefits analysis to find out what the critical yield is?

Due to a mixup with the pension provider not actioning my instructions by email, I have had to request a calculation as at 1st October, but this error on their part might work in my favour if I can switch out.

Your use of "pension provider" makes it send like a personal pension. However, these don't have forced dependants options unless you select to have them (please excuse the dumbing down there for those that know the subject - I am trying to keep it simple at this stage).

Again i am just looking for peoples thoughts on this idea and even any recommendations as to pension providers who would give a decent return on this pension for a single person.?

Pensions dont give returns. Where you invest gives returns and pensions can have 30,000 investment options and unlimited variations.

I think your old neighbour is trying to be helpful but is actually doing more damage than good. Being single doesn't matter with personal pensions. Switching to another personal pension won't change that. It would be like pouring a glass of water into another glass. You start with a glass of water and you end up with a glass of water. The new glass may be nicer or it could be worse but its still a glass. And in the process of pouring it over you could spill some and end up with less. That is the risk of what you are doing here.

What is actually wrong with your current pension?
What is the type of pension you have?

xylophone

If you wish to transfer your DB pension to a DC type, you will need specialist advice from an IFA with the necessary qualifications/permission

https://www.unbiased.co.uk/


This will not be cheap.

welshgasman

Thank you Atush,

I am still working, albeit a temp positions mainly due to my age I believe, but can live with that.

I have about 14k in saving, some of it is shares.

welshgasman

Noted.

Thank you.

welshgasman

dunstonh wrote: »

How long ago retired? What role did he do?

For example, if he was an old insurance agent for a life company then he would have viewed pensions as a product with possibly only one fund. If he was an old IFA then could also have that view but if more recently retired then he could view pensions as a tax wrapper. If he was in occupational pensions then he is unlikely to have much info on retail pension schemes.

He worked for what became Aviva for a good few years and retired from there about 4 years ago. AFAIK he just worked in the back office, not sure of his title/position

dunstonh wrote: »

Ignoring the fact that he is not authorised to give advice....

What type of pension is it? It sounds like it is a defined benefit scheme as that is the only type that is mandated to give a dependants pension. However, the historic stats on transferring those is that only 1 in 10 are suitable for transfer as the alternatives wont or are unlikely to meet the same benefits. as your old neighbour done a cost/benefits analysis to find out what the critical yield is?

No nothing like that, it was just mentioned in a chat over a pint.

dunstonh wrote: »

Your use of "pension provider" makes it send like a personal pension. However, these don't have forced dependants options unless you select to have them (please excuse the dumbing down there for those that know the subject - I am trying to keep it simple at this stage).

It was taken out when I was 17 and had just joined the Merchant Navy. In most cases the dependant option would likely be a good benefit, just not in mine as it turns out.?

dunstonh wrote: »

Pensions dont give returns. Where you invest gives returns and pensions can have 30,000 investment options and unlimited variations.

I think your old neighbour is trying to be helpful but is actually doing more damage than good. Being single doesn't matter with personal pensions. Switching to another personal pension won't change that. It would be like pouring a glass of water into another glass. You start with a glass of water and you end up with a glass of water. The new glass may be nicer or it could be worse but its still a glass. And in the process of pouring it over you could spill some and end up with less. That is the risk of what you are doing here.

What is actually wrong with your current pension?
What is the type of pension you have?

Not aware of anything wrong with it, it was just pointed out to me that the dependant benefit is redundant in my case an that I should get more pension if it was solely to me and no dependants allowed for.?

The pension is a defined benefit from the MNOPF and Rothsay Life. For some reason it has been split into 2 sections Old & New. Rothsay Life administer tthe Old section, the MNOPF administer the New section. Both pensions are producing about the same figures.

Considering I was only in the MN for 13 years, it seems like a very good pension, compared to the one I opened when I was contracting as a computer programmer some years back. It is effectively producing twice as much as that pension is currently estimating to provide.

I think I have my answer from all the replies I have had and will leave it as it is.

Thank you all for the replies.