Is it good idea to have one single pension scheme or multiple pension scheme?

dunstonh

Joey_Soap wrote: »

If I were the OP - I would immediately open a SIPP with a fund supermarket. I would transfer all my past pensions to that SIPP. I would select a basket of funds or trackers depending on my attitude to investment and my age. Each time I left a job I would then transfer it into my SIPP. I would NOT worry about the SIPP provider going bust because pension assets are held separately from the SIPP providers assets. If the provider goes bust, your savings are still there and will be taken over by another SIPP provider. HTH.

The OP has shown no indication that they understand advanced investment options. Even confirming that they did not know what a SIPP was. They have also said they want to reduce the management hassle.

To suggest that they used the advanced pension wrapper (SIPP) and build an asset allocation model portfolio using investments which would need ongoing reviews and rebalancing would be a mis-sale in the advice world. I know forum posters don't have to consider whether their forum posts are suitable or not but you should remember that what may be right for you does not mean it is right for someone else.

ex-pat_scot

In general terms:
It is easier to manage all your various Defined Contribution (DC) pots cenrally, rather than leaving them where they are. It gives you a single view of your retirement funds, and much easier access / calculation when you actually start to access your money.


You can set up a Personal Pension, or for more flexibility a Self Invested personal Pension.
These #tend# to be lower cost than what you are currently being charged. Group Personal Pension funds (who run company schemes for employers) have not had great press in the past for their charging schemes, and used to load the charges for people who had left the company.
Working out the total costs can be a bit complex. You will be charged a basic fee (% of funds under management, or a flat £ fee), on top of which there will be costs for each of the funds in which you are invested.


BHS, and other Defined BEnefit schemes that hit the headlines, are fundamentally different to your DC, in that the DC money is yours. The company has no ability to access it once it has been paid into the fund out of your payroll/salary.
As such, there's no risk of management running off with your money.


I have consolidated 6 r 7 legacy pots into a SIPP. It allows me a single view of my investments and makes life easier to manage. It's cheaper too. My funds are protected.


I can't transfer my current employment pension out of Scottish Widows, at least not until I leave the company. At that point, I will transfer to my SIPP.

BananaRepublic

dunstonh wrote: »

The OP has shown no indication that they understand advanced investment options. Even confirming that they did not know what a SIPP was. They have also said they want to reduce the management hassle.

To suggest that they used the advanced pension wrapper (SIPP) and build an asset allocation model portfolio using investments which would need ongoing reviews and rebalancing would be a mis-sale in the advice world. I know forum posters don't have to consider whether their forum posts are suitable or not but you should remember that what may be right for you does not mean it is right for someone else.

On the other hand many company pension schemes can be very poor indeed, with high charges when the employee leaves the company, and very poor performance of the 'default' funds.

I would not describe a SIPP as an advanced option, no more so than being in a scheme and choosing funds. However, as you imply, were they to open a SIPP, they would need to choose the funds, which would require some knowledge. But as I have said, no more so than transferrring between funds in a pension scheme.

It sounds like the OP has not looked in detail at the performance of their pensions, and that clearly would be a good start. Not necessarily easy given the number of pensions, but consolidating pensions would make tracking future performance easier.