Pearl prosperity with profits pension plan

saltpot

Hi Have a query about an old pension-with profit prosperity pension plan - defined contribution has a transfer value of £52,400. Not sure whether it is worth transfering into my Nest pension or not or of any other options that may be available to me. Thank you

tacpot12

That will depend on the performance of the investment (probably a With-Profits fund), the charges that the provider makes and how long you have to retirement. A short time to retirement might not give the change much chance to have an effect, but if you intend to drawdown from a pension, rather than buy an annuity, you will be invested for much longer so the change will have time to take effect and could pay off handsomely. 

NEST has some good funds. I especially like the Sharia fund. NEST is rightly critisised for its contribution charge (they take 1.8% over anything you pay in), but it doesn't charge anything on transfers in so you would not lose anything if you transfered. You should check whether the current provider would charge for the transfer.

saltpot

Thank you- approx 7-9 years until retiremenrt and likely to draw down

dunstonh

saltpot said:

Hi Have a query about an old pension-with profit prosperity pension plan - defined contribution has a transfer value of £52,400. Not sure whether it is worth transfering into my Nest pension or not or of any other options that may be available to me. Thank you

Its usually easy to find justification for moving Pearl V1s and V2s (some V2s use the Prosperity internal name).  Not sure NEST would be my cup of tea for individual planning but it you think its the best option then fair enough.  Its worth noting that the old Pearl plan does have some element of capital security on a proportion of the money and uses a smoothing process.   Going into a NEST fund would see full volatility.    People moving from smoothed funds to unit linked funds often cannot handle the volatility.