So confused - 3 pensions on the go at 31

Newlyboughthouse

I have changed jobs three times in the past 3 years - and as a result I have funds in 3 different pension pots. Looking through all the documentation, I have no idea which pension pot I should consolidate the three into?

I spoke to a financial advisor and he said he wouldn't look at a pension under the value of £50k, which mine is nowhere near. Plus if he did look, he would charge a huge fee for it.

I just want to consolidate for good housekeeping! Any pointers? What do I look out for in the documentation to make an informed decision?

Linton

Your best bet, all other things being equal, is probably to consolidate them into your current employers pot. They are more likely to want to help an existing employee and manage the whole process whereas there would be no benefit for an ex-employer.


However all other things may not be equal - mainly costs and choice of investment funds. If any of the pensions are old there may be special guarantees or beneficial conditions which would be lost if you transferred.



There is no major reason why you shouldnt have multiple pension pots.

tacpot12

You could also consider starting you own pension and consolidating the pensions that are not receiving employer contribution into this pension. You can then keep moving the funds built up in employer schemes into your own pension each time you change jobs.

kidmugsy

Remember that there is no hurry - or indeed necessity. Keep each up to date on your address and marital status, and then take your time.

dunstonh

I spoke to a financial advisor and he said he wouldn't look at a pension under the value of £50k, which mine is nowhere near. Plus if he did look, he would charge a huge fee for it.

But the fee may be cheaper than the fees you are already paying.

Newlyboughthouse

dunstonh wrote: »

But the fee may be cheaper than the fees you are already paying.

This is how dense I am on pensions - I didn't realise you paid a fee to have a pension it is all oh so confusing

dunstonh

Newlyboughthouse wrote: »

This is how dense I am on pensions - I didn't realise you paid a fee to have a pension it is all oh so confusing

Everything has fees. Nothing is free. The difference is how transparent the fees are.

Investments have charges that are disclosed explicitly. The most common charge is the annual management charge.

In 2001, the most common annual management charge was 1%. Today, you get half a third of that. Charges are not the primary driver but a secondary one. e.g. is it better to get 6% p.a. after charges of 1% or 4% p.a. after charges of 0.4%.

FIRSTTIMER

This post highlights the exact problem now faced after government ruling. Pension transfers over 30k IFA is needed to approve. So now, no one wants to pay thousands (which comes out the pension transfer value) to pay for an IFA. If the pension value is circa 50-75k. It’s a waste of money in my opinion. Resulting in things like this. People with loads of small pensions who end up with them never reviewed. Annoying. But hey, if you’re rich - pay the fees and get richer.

wjr4

FIRSTTIMER wrote: »

This post highlights the exact problem now faced after government ruling. Pension transfers over 30k IFA is needed to approve. So now, no one wants to pay thousands (which comes out the pension transfer value) to pay for an IFA. If the pension value is circa 50-75k. It’s a waste of money in my opinion. Resulting in things like this. People with loads of small pensions who end up with them never reviewed. Annoying. But hey, if you’re rich - pay the fees and get richer.

Defined Benefit transfers over £30k need advice, personal pensions do not. Two completely different things.

FatherAbraham

Newlyboughthouse wrote: »

I have changed jobs three times in the past 3 years - and as a result I have funds in 3 different pension pots. Looking through all the documentation, I have no idea which pension pot I should consolidate the three into?

I spoke to a financial advisor and he said he wouldn't look at a pension under the value of £50k, which mine is nowhere near. Plus if he did look, he would charge a huge fee for it.

I just want to consolidate for good housekeeping! Any pointers? What do I look out for in the documentation to make an informed decision?

When you started each pension, you should have been sent a post-sale illustration, or a key features document. These can tell you what the charges and costs of the pension arrangement are, for comparison purposes.