Transferring DC pension at 25

Zakstr

Hi, I've left my old company a few months ago and received my pension documents recently. I have £18,000 in it. I cannot enrol into my new companies pension until I meet the service requirements, which I intend to join. Am I best leaving this pension in the old scheme, starting and moving to a personal pension, or waiting for my new company pension. What fees will I be looking at, if any?

IanSt

If it is a straight forward DC pension then I assume the documents you've been given don't reference any specific fee payable and your question on fees is based on that you've heard that you've got to have a pension transfer okayed by an advisor.

If that is the case then don't worry, as it's a DC pension then you should be able to transfer it yourself and so won't have any fees unless you choose to get an IFA involved - which I really don't think you should given the relatively low amount involved.

As to what to do with it - well that will depend on the funds and costs that you are currently using and paying.

Keep it where it is if you believe that your old pension includes suitable funds and the total costs of holding that pension would be below the costs of holding that sum elsewhere.

However if the funds are not suitable or it could be held cheaper elsewhere then you might want to consider either consolidating the old pension into the new (if the new scheme allows that) or just moving the old pension into a newly created pension scheme that you set up.

MallyGirl

sometimes the fees on a pension are subsidised by your company when you are an acvtive member but jump higher once you stop paying in. My DH had a dormant DC pension with quite a decent plan attached but the fees were high - he now pays in £20 pcm and the fees have dropped right down.
I had a trail of DC pensions from various employments and have chosen to transfer them all into a SIPP for simplicity.
You need to investigate how it is invested and what that costs you, then you can make a decision