Combining pensions decision

runningBadger · 31 March 2019 at 10:18AM

Hi all

I have an old pension and current pension both with Scottish Widows. I'm considering combining them, so I asked them what the annual management charge is for both pensions. They are the following:

Old pension AMC: 0.304
Current pension AMC: 0.300

It seems a no-brainer to me to combine them, since the old pension AMC is higher. Are there any other considerations that I might need to think about, or is it really that simple?

Thanks everyone for your help!

wjr4 · 31 March 2019 at 10:21AM

Does the old pension have any guarantees or protected tax-free cash which would be lost on transfer?

Albermarle · 31 March 2019 at 10:30AM

Apart from the very slight lower charge , the newer pension is more likely to support drawdown if/when you take this option ( you do not mention your age) . You need to check this though because could be your current SW pension does not support it either , which means at some stage you might have to change to a completely new one .