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pension pot consolidation

Hi,
Does anyone have any thoughts about the benefits (if there are any) of consolidating different pension funds together. I have a personal pension form when i was a sole trader and am now on a company pension (defined contribution). i am unsure whether to move the personal pension fund (which has been static for 5 years) into the company one.....

Thanks,
G:confused:

Comments

  • dunstonh
    dunstonh Posts: 118,540 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You go with whichever gives you the most benefits. It isnt possible for us to say in your case as it requires an analyse of the figures to see which is best.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I'm currently consolidating some of my dormant company pension schemes together into a personal stakeholder pension. I was going to leave them alone, thinking that having a few smaller pension pots would be safer in case one company went bust, I'd still have money elsewhere.

    Then I investigated my pensions a little more closely and discovered they were all invested in the same Legal & General fund :rolleyes:.

    I've now moved them into my L&G stakeholder, but split them across several funds, which is far safer than having them all in a single fund.
    Mortgage Free in 3 Years (Apr 2007 / Currently / Δ Difference)
    [strike]● Interest Only Pt: £36,924.12 / £ - - - - 1.00 / Δ £36,923.12[/strike] - Paid off! Yay!! :)
    ● Home Extension: £48,468.07 / £44,435.42 / Δ £4032.65
    ● Repayment Part: £64,331.11 / £59,877.15 / Δ £4453.96
    Total Mortgage Debt: £149,723.30 / £104,313.57 / Δ £45,409.73
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    It can be bad thing to move old pensions. They sometimes have valuable guarantees or (if they were originally company schemes) may have entitlements to extra tax free cash.

    On the other hand some old pensions should be moved because they are in poorly perforimg zombie funds and/or have high charges.

    Post some info about the pensions if you want more guidance or see an IFA.
    Trying to keep it simple...;)
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