Moving a tiny pot

bearsparko

Hi, I think this is simple but I wAnt the hive’s opinion. 

30 yes ago I contracted out of surps and a pension with L&g was set up. 

After 2 yrs paying into it, I moved to Germany for 6 yrs and then back to the uk to an employer with a final salary pension scheme. 

My pot in the old l&g pension is ca £2000 and growing glacially and I fully expect for it to pay me a pension if 2x Indian takeaways a year. 

I want to combine it with my company pension and it looks easy enough to do. 

Question; is there any disadvantage in doing this, are there any risks I should be checking out?
I have asked reassure (l&g) if there us an admin charge or penalty for moving it, but other than that nothing springs to mind???
thanks. Marco

MallyGirl

does your company pension allow transfers in? If not then you would probably be able to take the lot out under the small pots rule when you turn 55

Albermarle

Normally transferring a DC pot to a final salary scheme is not that simple. All final salary schemes have their own rules though.
AS suggested a Small pot withdrawal at 55 looks the easiest option.

Marcon

bearsparko said:

Hi, I think this is simple but I wAnt the hive’s opinion. 

30 yes ago I contracted out of surps and a pension with L&g was set up. 

After 2 yrs paying into it, I moved to Germany for 6 yrs and then back to the uk to an employer with a final salary pension scheme. 

My pot in the old l&g pension is ca £2000 and growing glacially and I fully expect for it to pay me a pension if 2x Indian takeaways a year. 

I want to combine it with my company pension and it looks easy enough to do. 

Question; is there any disadvantage in doing this, are there any risks I should be checking out?
I have asked reassure (l&g) if there us an admin charge or penalty for moving it, but other than that nothing springs to mind???
thanks. Marco

Leave the pension where it is but change your choice of funds in which it is invested.

bearsparko

MallyGirl said:

does your company pension allow transfers in? If not then you would probably be able to take the lot out under the small pots rule when you turn 55

Yes, the company pension does allow transfer in’s, at no cost. Taking the lot out would be an option but I like the idea of not having another pot and not getting statements etc for the next 20yrs. 

bearsparko

Albermarle said:

Normally transferring a DC pot to a final salary scheme is not that simple. All final salary schemes have their own rules though.
AS suggested a Small pot withdrawal at 55 looks the easiest option.

Hi, I have misrepresented the situation. The final salary pension closed and 3 yrs ago my company started an alternative company pension. Not as good but still better than most people have access to.
it’s with Fidelity,  and it’s into this pension which I would like to transfer the £2k pot from my old pension scheme. 

bearsparko

Marcon said:

bearsparko said:

Hi, I think this is simple but I wAnt the hive’s opinion. 

30 yes ago I contracted out of surps and a pension with L&g was set up. 

After 2 yrs paying into it, I moved to Germany for 6 yrs and then back to the uk to an employer with a final salary pension scheme. 

My pot in the old l&g pension is ca £2000 and growing glacially and I fully expect for it to pay me a pension if 2x Indian takeaways a year. 

I want to combine it with my company pension and it looks easy enough to do. 

Question; is there any disadvantage in doing this, are there any risks I should be checking out?
I have asked reassure (l&g) if there us an admin charge or penalty for moving it, but other than that nothing springs to mind???
thanks. Marco

Leave the pension where it is but change your choice of funds in which it is invested.

Hi, don’t be offended but I’m not looking for a hobby. I actively dislike “money stuff”. I have always made choices based on what’s the most I can afford as I know it’s massively important, but the whole topic leaves me cold. I just want advice to made a good choice.
If you ever need any advice on cars/engines/diy/woodworking/technology I’m your man!

AlanP_2

My son has an employer scheme administered by Fidelity and also an older, small (less than £2k) pot. The Fidelity managed employer scheme had a minimum transfer in value so he couldn't go down that route so worth checking with Fidelity for your specific scheme.

What he is going to do is transfer it to a SIPP with Fidelity, at least he has both pensions on the same platform then making admin a bit easier going forwards.

Wherever you transfer it to you will need to decide on the investments inside the pension wrapper the same as you have with these two so far. Admittedly you may have just gone with their default options but it was a "choice" on your part. 

You haven't said what the growth is on either pension, or what they are invested in, but the "glacial growth" may be replicated in the growth inside your current employers scheme. If you don't carry out "maintenance" the growth "engine" won't perform very well.

TVAS

I also think Small Pot and do it in month 12 i.e. March. If you want to transfer to final salary scheme you need trustees permission it is not difficult. You need to tell L&G they will send you the transfer application, you complete your bit and send send it to your pension scheme who complete it and send it back to L&G who will do the transfer and send you a confirmation letter. If you a are worried about the volatility of the stock market assuming you re invested switch to cash. If not leave it invested where it is and run a risk of it going down. Who knows these days. The FTSE is appreciating at the moment so what do I know re investing: nothing!