Merge pensions? or keep seperate?

Albermarle

x_raphael_xx said:

Thank you everyone for your comments and links etc. I will look though them when I have a clearer mind. TBH this stuff is all greek to me. I need to sit and concentrate on it all. I have 2 months to send off my merge request, so I want to make sure I understand things better before I go ahead.

Deleted_User said:

Generally, merging is a good idea. Makes things simpler. That is assuming the two pension wrappers are identical in terms of costs and benefits. Which they likely are, unless we are missing a vital piece of info. “I've been told this isn't a good idea as I could end up losing money in the long run, depending on where the money is being invested by the pension company or something.” On the face of it it does not make any sense. The pension company does not pick investments. You do. Given its the same provider, your options are likely the same. It is however possible that your old scheme is under a different deal. Fees might be lower/compensated by your employer under a different arrangement. Can you ask your pension rep/trustee to spell it out?

The first pension was started when everyone had to be auto-enrolled a few years back. My employer went through Creative pensions, and I was sent a log in, that was pretty much my involvement. I didn't choose the investments, and not had an adviser as such.

When I log in I can see both pots are under the same fund name, same AMC.

The only difference I can see is while both have a 'Member charge', only the old pension also has a Annual Management charge. (was up to 38p, but no charges since 31/12/19).
30/06/2022 was when the pension was 'closed' and the new one started.
Looking at the 'Fund performance' graphs, they are identical, so I assume the two pots are in the same scheme, so I don't think I would lose out by merging the two.

So the fact that both pensions have the same investment fund, probably means that merging them or not is not such a big deal either way.
There is still the question about whether this default fund is suitable for you, or whether in the long run you may be better off changing it ( presuming there is a choice of other funds ?). I know you probably can not answer this question right now but still worth looking into, even if it is not your thing.

x_raphael_xx

Yes I managed to find the list of companies the investments are held with, exactly the same, percentages and whatnot. So in regards to these two I don't think it really matters, I may still merge them just for ease.

I was debating adding an extra sum monthly, to top it up more (I'm due a small pay raise so won't miss the extra money), so I'll look into my options.

Thank you all for your help

LHW99

x_raphael_xx said:

Yes I managed to find the list of companies the investments are held with, exactly the same, percentages and whatnot. So in regards to these two I don't think it really matters, I may still merge them just for ease.

I was debating adding an extra sum monthly, to top it up more (I'm due a small pay raise so won't miss the extra money), so I'll look into my options.

Thank you all for your help

Sounds as if these are both in the default scheme. These are intended for people who lack confidence and / or knowledge. It won't be the most dynamic fund ever, but nor is it likely to be the most awful. There is time for you to learn a little more, without needing to worry unduly about the pension investment(s).

Adding a bit extra when you can afford it is likely to be one of the best decisions you could make, because it will guarantee extra tex relief (=free money), even if it doesn't trigger your employer to also add more (some will up to a certain limit / =more free money).

x_raphael_xx

xylophone said:

Have you seen this?

https://www.creativebenefits.co.uk/creative-pension-trust/members/

https://www.creativebenefits.co.uk/creative-pension-trust/help-centre/how-to-merge-accounts/

Hi Xylophone, the fun thing was both pots had different log in, and neither could find the other company.
Pot A told me company B didn't exist, and Pot B told me company A didn't exist.

I rang them and spoke to a queue of 5 people who all told me they were not the transfer department but would put me through (and just kept transferring me to the same line) took them a week to get back via email too, but sorted now.

x_raphael_xx

Marcon said:

x_raphael_xx said:

Looking for advice on what info I would need to make an informed decision.

So we recently had a change in ownership at my place of work. So I have a pension under the old closed company (A), and a pension under the new company (B).
Both are held with the same people (creative pensions)

In my basic knowledge of pensions, I understand that I am charged fees, for the pension management & wotnot.
My idea was to take pot A and add it to pot B, as there are no longer any payments into A, and therefore would be eventually worn away by the fees. Pot B would get a nice injection, and I would get more interest on this bigger pot.
I've been told this isn't a good idea as I could end up losing money in the long run, depending on where the money is being invested by the pension company or something, I don't really understand it.

How do I work out the best course of action? What info do I need to dig out?

Thankees in advance

It's not like a deposit account, where the more you have saved, the higher the rate of interest. Why? Because you aren't invested in the same type(s) of fund(s) as a building society or bank deposit account.

This article may be helpful: https://www.thisismoney.co.uk/money/pensions/article-3550085/STEVE-WEBB-merge-small-pension-pots.html

Also useful reading: https://www.moneyhelper.org.uk/en/pensions-and-retirement

Presumably other people are in the same position as you (two pensions with old and new companies). Could you suggest to your manager or HR team that perhaps a Creative Pensions rep could come in and give a general talk about how pensions work? 

Hi Marcon,
Thank you, I've read through the article and link, very helpful
I think I'll speak to our payroll team and look at increasing my contribution in the New Year.