My pensions - your views please

Scarum

I'm 45 years, and have been working and contributing to pensions since I was 19. I wonder whether I should pay for advice as to whether it's a good idea to consolidate them. Any thoughts?

Thanks!

My pensions are (oldest pension at the top, newest at the bottom):

* Final salary company pension: £2k a year plus 6k lump sum
* Private pension: £0.9k a year
* Government final salary pension: 1.7k a year plus 4.5k lump sum
* NHS pension: 2k a year plus 5k lump sum

LHW99

How long have you been in the NHS pension?
If you haven't been there too long, would it be possible to move the Government FS pension into the NHS one?

Generally final salary pensions are harder to move around than DC.

jamesd

Three are defined benefit schemes that shouldn't generally be consolidated and with only one defined contribution scheme that would be worth considering consolidating, you've no other defined contribution scheme to consolidate it with.

There are transfer clubs rules for some of the government pensions and it's worth checking into the specific rules for the two of those that you have in case it's worth combining NHS into the other government one or vice-versa.

kidmugsy

You could ask for a CETV for the company pension (Cash Equivalent Transfer Value); if the answer impresses you you might want to move that money into a private pension. But for most people it seems to be better to leave an FS pension where it is.

Reasons for moving might include: (i) no spouse to receive the eventual widow's pension, (ii) objective reason to expect a short life, (iii) worries about the scheme's finances, and (iv) compelling use for capital at age 55.

About the govt/NHS pensions: do they have the same Normal Retirement Age?

hyubh

Scarum wrote: »

I wonder whether I should pay for advice as to whether it's a good idea to consolidate them. Any thoughts?

* Final salary company pension: £2k a year plus 6k lump sum
* Private pension: £0.9k a year
* Government final salary pension: 1.7k a year plus 4.5k lump sum
* NHS pension: 2k a year plus 5k lump sum

What do you mean by 'government final salary pension' - LGPS or PCSPS?

That said, 'consolidating' public sector pensions together means transferring older scheme benefits into the latest scheme with a so-called 'Club' transfer. This is typically a good option, however it needs to be done within a year of starting your current pensionable employment, so I imagine you've missed the boat on that one. Otherwise, 'consolidating' would mean transferring out to a single DC arrangement, which is unlikely to be a good idea, and impossible in the case of the NHS pension anyhow. It will also be impossible for the 'government final salary pension' if by that you meant a civil service pension (of the major public sector schemes, transfers out to DC arrangements are only still allowed with the LGPS).

Scarum

Wow - thanks for all the feedback, all in a matter of hours.

The Government pension is LGPS. I've been in the NHS pension for 7 years and am still in it so seems to be that it's too late to transfer the LGPS one in to it.

hyubh

Scarum wrote: »

The Government pension is LGPS. I've been in the NHS pension for 7 years and am still in it so seems to be that it's too late to transfer the LGPS one in to it.

Yes - I'd keep the LGPS one where it is in that case. If either the sponsoring employer or pension fund of the private sector final salary scheme is in reasonable shape, I'd say the same for that one too (45, to me, seems still too young to discount the secondary benefits that usually come with a final salary scheme).