Workplace pension

Shelle

A couple of years ago my employer decided to change their pension provider and start new policies rather than transfer.  After just a year I changed employer and obviously started a new pension with them in order to get their contributions as well.  That year old pension has just over £2k in the pot and is inevitably not receiving any contributions from myself nor the then employer.

I had not realised that you cannot close pensions when you change employer and noticed that I am getting management charges withdrawn every month.  So this means the balance is losing money rather than earning, and as I cannot close it until I am 55 the balance will disappear by then! It would have been better off in a non interest earning account than as it is. Looking around I can see that there are no exceptions (other than seriously ill) to close it, so would I be better off contributing towards it in addition to my other pension?

I am guessing that the previous pension that I had for years with that employer before they decided to change pension provider may well be doing the same thing?  I am trying to find out how to access it online to see what is happening with it.

El_Torro

You can’t withdraw the money, however you can transfer the money to your currently active pension provider, effectively closing your inactive pension.

TVAS

Can you transfer it to the current pension or a cheap SIPP? 
I doubt if you can pay contributions without an employer contribution you need to ask?
The above questions should be directed to previous schemes.

You are quite correct that charges for the managing the fund will still apply. So if you have a low fund value the charges can erode the fund.

You need to contact previous schemes and ask what you can do. You need to compare the charges with the existing plans with any new plan.

Vanguard offer a cheap SIPP. There are other cheap SIPPs if you want a standard personal pension with no frills suitable for those with low fund values.

xylophone

After just a year I changed employer and obviously started a new pension with them in order to get their contributions as well.  

Have you asked the new pension provider if a transfer in from your old scheme is permitted?

AlanP_2

It is what you are invested in inside the pension wrapper that provides returns. From a couple of years ago some investments could have doubledf in value, some are up just a few percent and no doubt some have lost money.

If you are invesed in Fund-A at your old workplace scheme with Provider-X and you move to a new provider then, if you choose Fund-A, again you will get exactly the same result (give or take a bit if new provider is cheaper than old provider).

You need to get all the information together about what you are invested in and with who and then ask for suggestions / ideas here. 

Shelle

Thanks everyone, I will contact my old and current providers to see what can be done between them.  Much appreciated getting your responses.