Pension Company Comparison

fedupbeingcheated

Hi All
Iam in a real dilemma.
I currently have 2 pensions. One is with Scottish Widows and the other is with Royal London which was started by my current employer.
Due to the economic-financial climate, I was considering closing my Scottish Widow pension and transferring the funds to Royal London. I can then utilise that money and help pay off some of the future eyewatering and extortionate fuel bills.
I have 2 questions....

• Is it better to continue with 2 pensions or close 1 and utilities the funds ?

• Which is the better pension provider. Scottish widows or Royal London?

Thank you in advance. 

MX5huggy

You can’t “close” a pension and get access to the funds. Are you over 55 years old? If you are you can access the money but there are consequences. 

dunstonh

• Is it better to continue with 2 pensions or close 1 and utilities the funds ?

It depends on the version of pension you have with each provider and the terms/functionality and investment options with each. 

• Which is the better pension provider. Scottish widows or Royal London?

Impossible to answer with a choice of one or the other.  Both have dozens or even hundreds of different types of pensions on their books.  Some versions will be better than others.  

Marcon

fedupbeingcheated said:

I was considering closing my Scottish Widow pension and transferring the funds to Royal London. I can then utilise that money and help pay off some of the future eyewatering and extortionate fuel bills.

Why do you need to transfer to 'utilise' the money? Given you are asking which is the better provider, it suggests both have similar contract terms - in particular, they would support drawdown, so you can access the money in chunks rather than all in one go once you reach the age of 55.

DIYPhil

I was in a similar position. I suggest you would be wise to contact a FA who will advise on the Scottish Widows pension, in particular how your funds are invested and whether they match your risk profile, years to retirement and any other relevant factors. If not, whether it would be beneficial to open a SIPP and transfer the SW pension to that. 

Brie

DIYPhil said:

I was in a similar position. I suggest you would be wise to contact a FA who will advise on the Scottish Widows pension, in particular how your funds are invested and whether they match your risk profile, years to retirement and any other relevant factors. If not, whether it would be beneficial to open a SIPP and transfer the SW pension to that. 

Doesn't that mean an IFA would be required rather than one tied to SW?

fedupbeingcheated

Just to clarify. I am currently paying into 2 pensions. I am under 55 so I will be moving the balance over to Royal London and closing the pension account.

Albermarle

fedupbeingcheated said:

Just to clarify. I am currently paying into 2 pensions. I am under 55 so I will be moving the balance over to Royal London and closing the pension account.

You confused us with this statement - I can then utilise that money and help pay off some of the future eyewatering and extortionate fuel bills.

The money can  be utilised when you reach the appropriate age, whether it is with two companies or one.

These questions made sense.

• Is it better to continue with 2 pensions or close 1 and utilities the funds ?

• Which is the better pension provider. Scottish widows or Royal London?

But according to the your last post you have decided what you are going to do anyway?

In the end how the money is invested within the pension, is much more important that who the pension provider is.