Transfering pension from previous employer

Reue

Good morning all,

I have a DC pension pot of about £11,000 with my previous employer. As I've now left them I no longer benefit from a reduced fee and so the ongoing charge is now 1%.

Is it possible to move this money from my previous employer to my new employer's fund where I can then benefit from the reduced charges? If so, how would I go about doing so?

Or if not, would it be worthwhile doing anything else instead? Or is a 1% fee ok to leave sitting there? Indeed is it even worth doing anything for a pot of only £11k in your opinion?

bigadaj

Contact your employers provider and ask, some will and some won't.

1% is high but as you say the sum is fairly small.

0.5% is a reasonable figure to target which is available on personal pensions and some sipps, would save you say £60 say per year.

Reue

So my current employer does allow in transfers but charges £200 to do so. Is it worth doing for a pot of £11k do you think?

kidmugsy

if you saved £60 a year then the transfer would pay for itself in just over 3 years. Do you expect to be with that employer for that long?

If not, could you find a private pension that's cheaper?
http://monevator.com/compare-uk-cheapest-online-brokers/

Reue

kidmugsy wrote: »

Do you expect to be with that employer for that long?/

Yes, I have no intention of switching jobs in the near future.

Should also add that the fund I'm investing in with my new employer has a 0.5% fee

kidmugsy

Then in your shoes I'd compare the advantages of transferring to the new employer's scheme to the advantages of transferring to a private pension.