Pension pot discovery

Pingu1

I have just discovered I have a workplace pension with Prudential, totaling around £23K. Its a surprise to me as I was switched to Legal & General in 2018. I assumed all of my pension would be moved to the new fund, but its turns out that is not the case. I'm not paying anything into the Prudential one, nor is my employer. Should I combine all my pension pots into one? I seem to be paying a monthly charge to Prudential for managing the fund. Also, I am expecting a period of unemployment in October 2026. I'm in my early 40s, so will attempt to find another job as my current employer is relocating. If unsuccessful, what should I do with my pension(s)? I don't know anything about pensions and how they work.

vacheron

Pingu1 said:

I have just discovered I have a workplace pension with Prudential, totaling around £23K. Its a surprise to me as I was switched to Legal & General in 2018. I assumed all of my pension would be moved to the new fund, but its turns out that is not the case.

You should have been asked during the provider transfer if you would like to switch your existing fund to the new provider. If you did not respond the usual default is to leave the funds where they are. 

I'm not paying anything into the Prudential one, nor is my employer. Should I combine all my pension pots into one? I seem to be paying a monthly charge to Prudential for managing the fund.

You will be paying a percentage of the fund value each year to Prudential to manage your fund. This is generally about 0.25-0.75% of the value of your pension each year, spread out as a monthly payment.

Don't worry too much about the existence of the fee as you will also be paying similar fees on your fund with L&G. The important consideration is what percentage these fees are, obviously the lower the better, but also what funds your money has been invested in and how you beleive these will perform.

Also, I am expecting a period of unemployment in October 2026. I'm in my early 40s, so will attempt to find another job as my current employer is relocating. If unsuccessful, what should I do with my pension(s)? I don't know anything about pensions and how they work.

This primarily depends on your future plans and overall financial situation. In your early 40's you generally will not be able to access the funds in these pensions until you reach 57-58 years of age, so plenty of time left.

Both your L&G pension and your Prudential pension will probably be "workplace personal pensions", and as such, belong to you. If you have not decided to combine them by the time you leave you can choose to do that later.... move L&G to Prudential instead... or move both to an entirely different provider. You may then also be able to move them both to your future employers scheme at a later date.

There are many options available and what you choose to do will entirely depend on your personal circumstances.

Albermarle

As above probably best to do nothing until your employment situation is clearer.

If you are unemployed for a while, could be a good time to start learning about pensions.
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