New job what should I do with my old pension?

fossman

I left my old job earlier this year (after 20 years), with all the upheaval I completely forgot about my pension.

I have received a letter from Aegon today saying contributions have stopped being made into my pension and the policy has been made paid up.

They say I now have three options:

1) Leave the plan as paid up and it will get converted to an Individual Personal Pension (this may increase the annual management fee)
2) Convert it to a Individual Personal Pension and continue making regular contributions
3) Transfer my benefits to another pension provider

I do not have another pension provider so option 3 is out of the equation (my current employer are auto enrolling with Nest in August).

Am I best to take option 1 and leave the pot open to annual management fees or 2 continue to make a small contribution each month or 3 seek further financial advice?

ischofie1

Why is option 3 out if the question?
Surely you set up a new pension provider & have it transferred there.

xylophone

You could choose another provider and arrange a pension transfer.
What is the pension worth?

fossman

Would I need to see an IFA to set up a new pension?

My pension value is showing as £30k.

xylophone

Would I need to see an IFA to set up a new pension?

Not necessarily. Examples:-

https://www.cavendishonline.co.uk/pensions/transfer-your-pension/

http://www.hl.co.uk/pensions/sipp/transfer-to-the-vantage-sipp/transfer-forms

greatkingrat

I think you need to find out what the ongoing management fee if you leave your existing pension untouched will be first. Until you know that there is no way of knowing if it is going to be worth transferring or not.

fossman

Thanks for the advice.

I am going to give Aegon a call and ask what the management fees will be if I leave the pension untouched and if it will make any difference to the fees if I continue making contributions.

My new employers pension with Nest starts in August and they are making employers contributions and not insisting that we make any employees contributions so I could afford to keep contributing into the old pension.