Small pension pot - what to do with it?

Becky19

Hi all, I was wondering if anyone could give me some advice about what is best to do with my pension from the job I have recently left. I have just had a letter through explaining that the fund value is £4447 and I need to decide what to do with it.
I'm 25 years old and have just started a local government job, so am paying into the LGPS. I'm unsure if I'm able to transfer it to this?
As is such a small amount I'm not really sure what my options are so any help would be much appreciated.

LHW99

I believe we have people on the boards who know the LGPS system well, and will be able to be definate, but I think there is a time limit for transferring money in.
Have you asked at work if they can clarify?

xylophone

I have just had a letter through explaining that the fund value is £4447 and I need to decide what to do with it.

What options have been offered?

http://www.yourpension.org.uk/Dorset/Scheme/LGPS-Guide/Transfers.aspx


Transferring pension rights into the LGPS
You may be able to transfer pension rights into the LGPS from:

a previous LGPS Fund, or
a previous employer's pension scheme, or
a self-employed pension plan, or
a ‘buy-out’ policy, or
a personal pension plan, or
a stakeholder pension scheme, or
an Additional Voluntary Contribution (AVC) arrangement



Your Pension Fund administrator can advise you of their process for transferring previous pension rights into the LGPS.

Remember, you only have 12 months from joining the LGPS to opt to transfer your previous pension rights, unless your employer allows you longer.

Becky19

xylophone wrote: »

What options have been offered?


Transferring pension rights into the LGPS
You may be able to transfer pension rights into the LGPS from:

a previous LGPS Fund, or
a previous employer's pension scheme, or
a self-employed pension plan, or
a ‘buy-out’ policy, or
a personal pension plan, or
a stakeholder pension scheme, or
an Additional Voluntary Contribution (AVC) arrangement



Your Pension Fund administrator can advise you of their process for transferring previous pension rights into the LGPS.

Remember, you only have 12 months from joining the LGPS to opt to transfer your previous pension rights, unless your employer allows you longer.

The letter just says I can leave it invested or transfer it out. I'm pretty clueless when it comes to pension so don't really know if one is better than the other or not since it's only a small amount.

Silvertabby

Becky19 wrote: »

The letter just says I can leave it invested or transfer it out. I'm pretty clueless when it comes to pension so don't really know if one is better than the other or not since it's only a small amount.

You can ask your LGPS for a quote to see how much extra pension that money would buy you. Then decide.

xylophone

The letter just says I can leave it invested or transfer it out

This is a Defined Contribution Pension (not Defined Benefit)?