Final salary pension with previous employer - Retail - would you move it?

lawm01

I’ve got quite a good final salary pension with a past employer.  The business was high street ‘big name’ retail which is still trading.  With the current retail climate, would you move the pension?
im 50+ and have other pensions, but I’d be in a bad way if this pension were to get into trouble. 
NB - I’m a pension novice and don’t know the ins and outs of how pensions are invested, protected etc. Forgive my ignorance!

Albermarle

In case the pension fund can no longer meet its liabilities it is moved into the Pension Protection Fund , where you will receive 90% of what you are entitled with a few less generous conditions . 
Moving it is possible but not simple and is also a risk .
If you have many pensions and worries about this one 'and I’m a pension novice and don’t know the ins and outs of how pensions are invested, protected '
It might be an idea to go see an IFA ?

AlanP_2

Given the retail environment at the moment I can see your point of view. I think a lot may depend on the type of retail. Personally I would be less worried about a Tesco / Sainsburys FS pension than I would about a Currys / Fashion chain one.

If the sponsoring employer for a DB/FS scheme fails the pension will go in to the hands of the Pension Protection Fund (https://www.ppf.co.uk/). Have a read and see how your benefits would be affected as the Ts&Cs are "theirs" not the old schemes when it comes to inflation linked rises etc.

Your other option is to ask the scheme for a Cash Equivalent Transfer Vaue and move it in to a DC / investment pension. If the benefits are worth >£30k you will need, by law, to take independent financial advice and obtain a reccomendation on whether is suitable for you and your circumstances or not. This is likely to cost £3-£6k and there are not many IFAs offering the service any more as their liability insurance premiums to cover " a very high risk" transaction have gone up a lot recently. The regulator for IFAs starts from a perspective that a transfer out of a DB scheme is "the wrong decision" unless there are really good reasons for it (e.g. limited life expectancy & no spouse to benefit from the DB).

You can still transfer even if "IFA says NO" and there are threads on here that cover the how and where-to, as well as hundreds of threads on CETVs and transfers out so skim through or use Search.

lawm01

Thanks both.  Really helpful.  

Marcon

lawm01 said:

I’ve got quite a good final salary pension with a past employer.  The business was high street ‘big name’ retail which is still trading.  With the current retail climate, would you move the pension?
im 50+ and have other pensions, but I’d be in a bad way if this pension were to get into trouble. 
NB - I’m a pension novice and don’t know the ins and outs of how pensions are invested, protected etc. Forgive my ignorance!

I'd find out more about the current state of the employer and also more about the funding level of the pension scheme before doing anything more.