Private Pensions Advice

Ms_Chocaholic

Hello

My husband has several small private pensions from various employments - I can't imagine they are worth very much.  Is it worth combining them all before claiming?

I've no idea on this so any advice would be much appreciated, thanks.

tacpot12

It might not be worth combining them. Doing so might incur higher charges, as the employer often picks up the bulk of the platform fees for private pensions arranged through them. 

If he wants to ensure that none get lost or forgotten about, he just needs to make a list and keep it with his Will.

It's probably worth reviewing how each pension is performing and that they are invested in the right place. He can do this with each pension in turn. If he finds he can't invest in what he thinks is the best way due to limitations with the pension, this might be a reason to move some of them. 

dunstonh

I can't imagine they are worth very much.  Is it worth combining them all before claiming?

Imagining what their worth is doesn't achieve anything.   Knowing what their worth is does.  So, before you consider anything, you need to know what they are worth and the terms of each.

MeteredOut

My wife had a works pension from years ago that she could not imaging was worth a lot. She was only worked there for a couple of years and neither she nor her employer directly contributed anything towards it (it was contracted out contributions only). All she had was the policy document from Windsor Life, in her maiden name, at an old address.

I finally managed to convince her to find time to track it down and provide the documentation to take ownership of it. It's now worth £9K.

Brie

First thing to do is contact each and every company and get a benefit statement.  This should give ooddles of info about what type of pension (defined benefit or defined contribution), what they are worth now, what they might be worth at normal retirement age, what is the normal retirement age, whether they can be transferred perhaps.

Once he's got that info I'd divide them up between DB (can't be transferred) and DC (could be transferred) and list them on a spreadsheet with current value, what they will pay and when they will pay it.  Add to that info on his state pension from his forecast on the gov.uk site.  That at least will give him something to think about and decide on the next steps.

xylophone

DB (can't be transferred) and DC (could be transferred

 More nuanced than this.

Assuming that your husband has not yet reached SPA, as suggested above, he should check his forecast.

https://www.gov.uk/check-state-pension

Is he currently over age 55?

Then, as also suggested, take a sheet of paper and list the pensions.

Note whether each one is DB or DC (or just possibly a hybrid of both).

Check value of each.

If DB, check normal scheme pension age.

If DC, check for any "safeguarded benefits" ( any kind of underpin or Guaranteed Annuity Rate).

If he is currently contributing to a pension scheme, would a transfer in be accepted?

LHW99

Brie said:

First thing to do is contact each and every company and get a benefit statement.  This should give ooddles of info about what type of pension (defined benefit or defined contribution), what they are worth now, what they might be worth at normal retirement age, what is the normal retirement age, whether they can be transferred perhaps.

Once he's got that info I'd divide them up between DB (can't be transferred) and DC (could be transferred) and list them on a spreadsheet with current value, what they will pay and when they will pay it.  Add to that info on his state pension from his forecast on the gov.uk site.  That at least will give him something to think about and decide on the next steps.

And include his current works pension as well as that will obviously add to the mix.

Ms_Chocaholic

Thank you all for your advice.  He is now retired (age 59) and receives a pension, paid since age 55, it's the other ones we are unsure about.  He has checked his SPA forecast and he has all the years he needs (as do I) for a full state pension, it says something like he can't get any more.

Cheers

Ms Choc