Transferring Pensions - What to Consider?

Cotta

Hi All,

I have been with my current company for around one year and I am hoping to stay here for a reasonable length of time.

In the past I have had a number of temporary jobs which have accumulated a small patchwork of pensions.

I am looking at one in Friend's life at present that is from 2013 for a job I was in less than six weeks, the current value is £458 and I would to transfer this into my existing company pension pot which is currently with JLT.

Today in relation to the transfer I was advised of the following:

The monies would be invested in the Plan, which is on a money purchase basis, as set out in the Plan literature. The actual transfer value we receive will depend on the value of your units on the day they are disinvested by your previous scheme.

I am not quite sure what the above means and is there anything else I need to take into consideration before going ahead with the transfer?
Thanks in advance.

Linton

The bold text means that, as the value of your investments changes on a daily basis, if you decide to ask for the transfer today your scheme may actually make the transfer tomorrow, or next week, or whenever and no-one knows what the price will be at that time. It may be higher or lower. Barring a Zombie apocalypse or Trump obliteratng North Korea (or vv) it wont be wildly different.

For only £458 it's not worth worrying about. The reduction in admin for you and everyone else of running an extremely small pension is far more valuable than plus or minus a few £s.

dunstonh

I am not quite sure what the above means and is there anything else I need to take into consideration before going ahead with the transfer?

It means they will invest the value when they receive it and the amount put into the pension will depend on what is sent to them by the existing scheme. i.e. you may have given them a figure but that figure will change daily and is not guarantied. So, when they receive the money, it will almost certainly be a different amount. They are just covering that point off because some people think that transfer values are guaranteed.

AnotherJoe

As above, eg you wrote "the current value is £458 and I would to transfer this into my existing company pension pot which is currently with JLT."

...but that was the current value when you looked, whereas right now will no longer be £458 it will vary by a few pence or maybe a pound or ten each day. So in a week or three when the transfer goes through it could easily be 5% either way. As said, nothing to worry about.