Pension Pots Advice

GrvR78

Hi... I'm hoping someone can help with some basic knowledge on pension pots. Last year I received some independent financial advice on my several pensions and combined them into one. This was with my then workplace pension as it's a good one. I have now left that company and the new business I am with have set me up on their pension scheme, which is just as good. I think it's best if I move my old workplace pension into the new one (the old one has a good amount in it, the new one has only just started). Anyone have any experience in this situation?

dunstonh

I have now left that company and the new business I am with have set me up on their pension scheme, which is just as good. I think it's best if I move my old workplace pension into the new one (the old one has a good amount in it, the new one has only just started). Anyone have any experience in this situation?

As you say the new one is just as good, that suggests you have analysed the two schemes in respect of charges, investment options and functionality.   So, that would put you in a better position to answer your question than us on the internet who have no details of either scheme.

Or perhaps you haven't done any of that and have just assumed the new one is as good but are not really in a position to say.....

bolwin1

I'd suggest looking at these 3 key points.

1. Charges - what are the charges of each pension ? You'll need to find this from the pension documentation as employers often get a discount. You may find the monthly charges in your old pension might go up a bit now you've left them. For example, a difference in 0.5% p.a. charges makes a big difference to your pension pot over 20 / 30 years, so charges are important. 

2. Do both pension schemes offer the types of investments / funds etc. that you are interested in ?

3. Do both have a usable online portal so you can track / view / amend your pensions ? 

There's no harm in having 2 different pensions, so long as you are comfortable keeping an eye on both. Personally, if all things are equal, I'd keep them separate for future flexibility, but others may prefer the convenience of one pot. 

bjorn_toby_wilde

IvanOpinion said:

Would another possibility be to look at moving the old scheme into a SIPP? That might provide more flexibility.

Although the OP would need to look at charges. Some workplace schemes have very low charges, presumably because larger employers negotiate a better deal.

Albermarle

bjorn_toby_wilde said:

IvanOpinion said:

Would another possibility be to look at moving the old scheme into a SIPP? That might provide more flexibility.

Although the OP would need to look at charges. Some workplace schemes have very low charges, presumably because larger employers negotiate a better deal.

I have one ex workplace pension with a very large ex employer and the platform charge is 0.1%, no charges for fund changes and a very small % increase when it goes into drawdown. Many if the funds available are also only 0.1%.
A Sipp would typically be more expensive, although the website and customer service would be better.