Should I transfer my pension?

waterman10

Hi,

Hoping to get some advice on my pension as I find it all very confusing!

I've got a defined benefit pension from a company I worked for about 20 years ago with a current value of £870 per year.  I also have a Nest pension that I was contributing to from 2014-2017 and the pot value is about £470.

My question is should I transfer one into the other to keep it all in one place or should I leave them as they are?  I don't know if there's any benefit to doing that?

Thanks, any help would be greatly appreciated.

Mark_d

There is no benefit in combining these.  Keeping them separate maintains the protections offered under your DB pension.

dunstonh

You wont be able to transfer the pension from the DC scheme into the DB scheme.    The nest scheme can either be taken as a small pot when old enough or transferred into a different scheme if you are still in the accumulation stage of life.

Brie

Also transferring a DB pension to anything other than another DB is just this side of impossible.  It could cost you £5k+ to get the advice and that is most likely to turn out to be no, don't do it.  

And having them separate gives you a bit more flexibility on what you do when.

westv

Is that £470 correct? I am just wondering.

Simon11

Don't touch the defined benefit pension, however I would consider moving the Nest pension if its just £470. This is of course assuming that hopefully you have another pension pot that you have been contributing into?

If not, rather than focus on this minor, minor issue, it may be worth doing some serious number crunching into your retirement aims and amount needed to fund your lifestyle?

Hopefully a light bulb moment?

artyboy

westv said:

Is that £470 correct? I am just wondering.

I'd also want to double check that the £870/year for the other one was the value as of the leaving date, 20 years ago - OP, I know you said 'current' but have you worked this out as the revalued amount in today's money?

waterman10

artyboy said:

westv said:

Is that £470 correct? I am just wondering.

I'd also want to double check that the £870/year for the other one was the value as of the leaving date, 20 years ago - OP, I know you said 'current' but have you worked this out as the revalued amount in today's money?

Yes the £870 is today's value.

waterman10

Simon11 said:

Don't touch the defined benefit pension, however I would consider moving the Nest pension if its just £470. This is of course assuming that hopefully you have another pension pot that you have been contributing into?

If not, rather than focus on this minor, minor issue, it may be worth doing some serious number crunching into your retirement aims and amount needed to fund your lifestyle?

Hopefully a light bulb moment?

The two pensions I've mentioned are the only two I have.  Other than that, I feel like i'm doing alright.  I'm in my mid-40s, own my home outright, am on track to have the required number of years NI contributions to get full state pension, I have a high four figure sum in savings.  I'm on low income and am quite happy living a modest lifestyle, not a materialistic person.

I don't feel worried about the future but maybe i should be.  

Gary1984

It's hard to see how you could contribute to a pension for 3 years and it only be worth £470? Especially given the very good market returns since then. Could this be the annual projection figure rather than the pot value?

Anyway, to answer your question. It's not a good idea to transfer the DB into Nest due to hefty fees, practical difficulties and the loss of guaranteed benefits. It isn't possible to do it the other way round as you're no longer an active member of the DB scheme.

Cus

waterman10 said:

Simon11 said:

Don't touch the defined benefit pension, however I would consider moving the Nest pension if its just £470. This is of course assuming that hopefully you have another pension pot that you have been contributing into?

If not, rather than focus on this minor, minor issue, it may be worth doing some serious number crunching into your retirement aims and amount needed to fund your lifestyle?

Hopefully a light bulb moment?

The two pensions I've mentioned are the only two I have.  Other than that, I feel like i'm doing alright.  I'm in my mid-40s, own my home outright, am on track to have the required number of years NI contributions to get full state pension, I have a high four figure sum in savings.  I'm on low income and am quite happy living a modest lifestyle, not a materialistic person.

I don't feel worried about the future but maybe i should be.  

If you are happy to carry on working until you get the full SP, and you could live on that amount from then, then all good