Work Place pension after redundancy

Bucko2791

I have just taken redundancy and have received my leavers letter. How can i find out if leaving my money in the workplace pension is the right choice. Its currently with Legal and General. I have just been offered at another company that have there own pension scheme and so is it best to transfer my pension pot into their pension scheme? As i understand I will still be charged a management fee with Legal and general and so i could see my pension pot reduce over the next 10 years.

molerat

Your pot should still increase in line with how it is invested, unless invested in something weird it should out perform the charges.  If the new pension offers a better charging structure then it may be worth moving it.

Rich1976

You won’t see a reduction in your pension as despite the management charge the fund should still grow well above this.

whether transferring to your new scheme is a good idea will depend if the new scheme is better in your opinion eg lower or about the same charges and a decent fund range . Or if you are in the default fund , is it any good such as a decent equity bond spread for your age? Some default schemes have low percentages in equities or shares so may not be suitable if you have many years to go until retirement . In which case it would be better to leave your previous scheme as it is or transfer to another personal pension or Sipp.

DE_612183

Well, you will get charged a management fee, but your "pot" will also increase over time as well - hopefully.

If you move it you will still charged a management fee ( it's probably a % anyway ).

You could check the % fees for both, and the performance to judge which will be better - although my guess is that the difference may be negligible - depending on the size of the pot.

Personally I try and keep a few different pensions separate - just in case for some reason one company implodes!

Brie

Presumably this is a defined contribution pension so the stock prices will likely affect it more than admin fees.  My relatively small DC pension from an employer I left 16 years back went from about £12k (I think) and now is bouncing between £20k & £25k.  As I recall that means at the top that it's the equivalent of about 8% per year increase.  Now if the stock market would just settle down I might be able to cash it in!!

Albermarle

As above you have to be clear in your mind that within your old and new  pensions, your money is held in investment funds.
You can check and change these funds online normally. How these funds perform will far outweigh any impact of charges .