Changed job, should I transfer my Pension?

methzzz

Hi, I am looking for some pension advice please after recently changing my job.

I working for a company for ~ 4 years and have saved a modest amount in a workplace pension with Legal and General. The company would contribute a percentage if I paid 5% of my salary, it is ~£20k at the moment. After leaving this company I was sent a letter outlining my options but I am unsure whether just to leave it as a separate pot or transfer it to my new pension.

My new organisation has a similar pension scheme and it is also with Legal and General. So I can see both my pension pots when I log in to their website. I understand I need to weigh up the costs of doing this but I'm finding it difficult to do this. Does anyone have experience with this situation and can advise?

Thanks

Thrugelmir

Far easier to manage fewer pots. Unless they are of significant value I'd consolidate together.

Alexland

Ask for information on fees incase the old pension is cheaper than the new one. As if there were any special benefits on the old scheme (earlier retirement date, larger tax free lump sum, etc) which you would be losing but it is unlikely if it was that recent.

Having done those checks then I would transfer to tidy up as the value is not significant. Check you are happy with the investment choices being made in the new scheme.

bigadaj

Alexland wrote: »

Ask for information on fees incase the old pension is cheaper than the new one. As if there were any special benefits on the old scheme (earlier retirement date, larger tax free lump sum, etc) which you would be losing but it is unlikely if it was that recent.

Having done those checks then I would transfer to tidy up as the value is not significant. Check you are happy with the investment choices being made in the new scheme.

Unlikely to be cheaper but may have guarantees or benefits.

methzzz

Many thanks for your responses

MallyGirl

one of my husband's old pensions had reverted to much higher fees because he wasn't paying in. For that one it was worth setting up a £20 pcm payment in to make it 'active' again.

AnotherJoe

One approach that would seem to work is to open up a SIPP and transfer the old one in. That way you just have two pensions, youe SIPP that contains all your previous pensions,and the current employers scheme.

This assumes that none of the old schemes had guarantees attached, which for most recent schemes and any going forward is likely to be the case.