Is it a hassle to transfer pensions?

Chomeur

I have pensions with utmost (ex Equitable Life) and Aviva. I'm like to transfer the utmost one to Aviva for reasons of simplicity and also because utmost never send me statements even though I chase them (maybe I should complain). Is it a hassle to do this? I spoke to Aviva, and, if I understand them correctly they said that I need to speak to a financial advisor to do this and have to pay the advisor. Sounds a load of tosh but there you go. Any advice?

sheslookinhot

You could also transfer both pensions to a third party. Someone who is more customer focussed.

dunstonh

Is it a hassle to do this?

Utmost are not the smoothest as they still need discharge forms (the majority don't nowadays).  But apart from that, no.

I spoke to Aviva, and, if I understand them correctly they said that I need to speak to a financial advisor to do this and have to pay the advisor. Sounds a load of tosh but there you go. 

Aviva is not authorised to give advice.  So, if you asked them questions that delved into advice or opinion or involves the products of other providers then they are required to tell you that you need to speak to a financial adviser.   

Some of Aviva's pensions are only retailed via advisers.   If you have one of those, then you would be required to use an adviser to transfer it in.

If you are on a legacy Aviva pension (i.e. an old one that is no longer available for new business) then you may need to use an adviser to transfer into it.  It is possible that a transfer in is not an option.   However, it is likely the adviser would not use a legacy plan anyway as modern plans are usually better than older ones (not a hard and fast rule.   There are some old gems out there)

Albermarle

Chomeur said:

I have pensions with utmost (ex Equitable Life) and Aviva. I'm like to transfer the utmost one to Aviva for reasons of simplicity and also because utmost never send me statements even though I chase them (maybe I should complain). Is it a hassle to do this? I spoke to Aviva, and, if I understand them correctly they said that I need to speak to a financial advisor to do this and have to pay the advisor. Sounds a load of tosh but there you go. Any advice?

Do you also have a current works pension? Or are you retired or maybe self employed ?

Chomeur

I actually have two pensions with Aviva, one was previously with Friends Provident, the other with Sun Life. All three pensions were set up around 25 years ago. Now I'm self-employed, and not contributing to any of them. I agree that utmost is not very customer focussed. I certainly wouldn't transfer into utmost. I would have transferred into Aviva, but if I have to pay for advice to do so then I think it's not worth the trouble. 

So I suppose I just leave all three pensions where they are. I'm happy enough with the financial performance of each. I guess it's less trouble to take three annuities in the future instead of combining the pensions so that I only have to take one. If utmost remain tardy in sending me statements I can just complain.

dunstonh

. I would have transferred into Aviva, but if I have to pay for advice to do so then I think it's not worth the trouble. 

The plans you have would be unlikely to be be used by and adviser as they are old fashioned and statistically likely to be poorer value than a new plan put in place by an adviser today.

 I guess it's less trouble to take three annuities in the future instead of combining the pensions so that I only have to take one.

Most people don't buy annuities nowadays.   Is that your plan?

xylophone

What is your current pension arrangement?

Marcon

Chomeur said:

I actually have two pensions with Aviva, one was previously with Friends Provident, the other with Sun Life. All three pensions were set up around 25 years ago. Now I'm self-employed, and not contributing to any of them. I agree that utmost is not very customer focussed. I certainly wouldn't transfer into utmost. I would have transferred into Aviva, but if I have to pay for advice to do so then I think it's not worth the trouble. 

So I suppose I just leave all three pensions where they are. I'm happy enough with the financial performance of each. I guess it's less trouble to take three annuities in the future instead of combining the pensions so that I only have to take one. If utmost remain tardy in sending me statements I can just complain.

Less trouble to have three annuities? Really? It'll certainly cost you more, because you'll be paying for three lots of admin rather than just one.

Chomeur

Oh, OK, sounds like it's better just to draw down the money than take annuities. In which case I may as well just leave the money in each of the three pensions until I have a use for it. Which may be never. I have cash savings and spend very little. 

Chomeur

xylophone said:

What is your current pension arrangement?

As, I say, I'm not contributing to a pension currently. I don't earn enough to pay tax so don't see any point.

Malthusian

You don't have to consolidate your pensions to have a single annuity; you can just transfer three pensions to the annuity provider who then sets up a single annuity for you.

Chomeur said:

As, I say, I'm not contributing to a pension currently. I don't earn enough to pay tax so don't see any point.

If you pay into a "relief at source" pension (all personal pensions are relief at source, not all workplace pensions are) you still get 20% tax relief even when you are paying 0% tax. That translates into a £25 bonus on every £100 you pay in. And if you won't have enough income in retirement to pay tax (which would often be the case for someone who is a non-taxpayer in working life), that means you get 25% free money on the way in and pay 0% tax on the way out. In the worst case where your pension income takes you over the personal allowance, you pay 15% tax on the way out.
Any personal contributions do however need to be within your earned income for the tax year. Or £2,880 if lower, £3,600 including the tax relief bonus.