Multiple Pensions

Cameron1590_2

Hello,

I have multiple pensions having changed jobs a few times over the years. 

I have three defined contribution pensions, all of which I was a paying member of for just shy of two years. As such, the biggest of the lot is forecast to pay me £1,400 per annum, with the others around the £1k pa mark on retirement aged 65.

I have recently gone self employed and have opted to stash as much as I can into my private sipp. 

I'm currently 28 years old and have dreams of retiring at 55. 

I am consolidating two other private pensions I currently have into the new private sipp and wonder if I should do the same with the DC pensions. 

I know DC pensions are the "gold dust" pensions but I wondered if this still applied given their small value overall and if they'd be better in the private sipp?

Thanks,

Cam

dunstonh

I know DC pensions are the "gold dust" pensions

That is not a phrase I have heard before.      DB pensions are often referred to as gold plated or gold standard but not DC pensions.

 I wondered if this still applied given their small value overall and if they'd be better in the private sipp?

Your SIPP is a DC pension.   Your three other pensions are DC pensions.   So, basically, all four are the same in terms of how they work.   So, you should put them all into the best one unless there are any safeguarded benefits or justifications for not doing so.   

xylophone

Do you mean that you have three DB pensions, a SIPP and two other pensions, both DC?

Albermarle

As such, the biggest of the lot is forecast to pay me £1,400 per annum, with the others around the £1k pa mark on retirement aged 65.

This would indicate they are DB pensions ?

Cameron1590_2

Sorry, yes I have three pensions that are Defined Benefit. With the others being defined contribution. 

Sorry for the confusion, my fault for using the wrong abbreviations!

Linton

If the CETV of any of the old DB pensions is less than £30K you may be able to transfer it to your SIPP.  Otherwise it could be very difficult if not impossible. Whether that would be a good idea anyway is doubtful, probably best to leave them where they are.

Dazed_and_C0nfused

Cameron1590_2 said:

Sorry, yes I have three pensions that are Defined Benefit. With the others being defined contribution. 

Sorry for the confusion, my fault for using the wrong abbreviations!

Do you really want to give up DB pensions??

Might be prudent to keep them as a good foundation to your retirement plans?  

xylophone

If the DB pensions relate to  membership of unfunded public service schemes, (most of them with the notable exception of LGPS) you won't be permitted to transfer out to a scheme providing flexible benefits.

Otherwise, see

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/495377/pension-benefits-with-a-guarantee-factsheet-jan-2016.pdf

and note that even where the SBs are valued under £30,000, receiving schemes may still not accept without advice.

Advice from a Pension Transfer Specialist is not cheap and where a positive recommendation is not provided, finding a scheme to accept the transfer is not easy but see

https://forums.moneysavingexpert.com/discussion/6417848/insistent-client-pension-transfer/p1

There should be no problem transferring DC pensions to SIPP.

Bimbly

Three defined benefit pensions? Lovely! 

You have guaranteed £3.5k ish a year from age 65 because of that, almost certainly increasing with inflation each year (albeit likely with a cap of some kind). Worth holding onto.

You have plenty of opportunity, at your age, to add more into a defined contribution pension. This will give you a valuable mix of options.

Even if you retire at 55* and have to wait ten years for the DBs to kick, you simply draw more from your DC pensions until your DB ones start to pay out.

* Of course, you will not be able to access your DC pensions until at least 57 by then (possibly later), so you will need to fund a couple of years through other savings. At your age, you might also consider opening a LISA.