Pension Dummy - Any advice

wackojackouk

Hi guys

Wonder if you can help me out here. I started a pension a few years ago (approx 12 years) paying in £40 a month. Upped it to £100 a month and still pay the same amount in. Pension was with CGU and now Norwich Union.

Also had a pension for about 6 months via a company I worked for which paid contributions too. I think this was with Fidelity and has approx £1.5k in there.

Have recently started at a new job where the company gives 4% + a 2.5% bonus if I pay in 2.5% so think I would be stupid to not do this (pension is with Prudential btw).

That's the background (Sorry for the length) and here's my questions.

1. The Norwich Union one has me contracted out as that's what I was advised to do at the time - as I am only paying in £100 should I contract back in? (I am 32 years old).

2. Would it be worth merging the Fidelity one with the Norwich Union one?

3. Should I stop paying into the Norwich Union one once I start up the new company one?

Sorry if anything is a bit vague but I am (obviously) not an expert in this field. If more info is needed please advise

Thanks

WJUK

dunstonh

1. The Norwich Union one has me contracted out as that's what I was advised to do at the time - as I am only paying in £100 should I contract back in? (I am 32 years old).

The amount you pay has nothing to do with whether you should contract out or not.

With the pros and cons of contracting in or out, which do you feel suit you the best?

2. Would it be worth merging the Fidelity one with the Norwich Union one?

Depends on charges, investment choice etc. The NU pension is a legacy one and may not be as good as their current offerings (almost certainly isnt).

3. Should I stop paying into the Norwich Union one once I start up the new company one?

It may or may not be worth stopping and redirecting the contributions. That would depend on your circumstances. With the employer contributions into the group personal pension it may be sensible to look at stocks and shares ISA for your £100pm so you have the "bit of both" that is so often the best course of action when looking at retirement provision.

wackojackouk

Thanks mate.

1. What are the Pro's and Cons btw - This was ages ago that I did this. I think NU sent me a letter 18 months ago suggesting I opt back in but I never did anything about it.

2. I will contact Fidelity and see what their charges are and also charges for transferring the pension.You also mention legacy pension - can you elaborate on this and could I move my existing pension with NU to one of their more recent offerings?

3. Quite interesting about the stocks and shares ISA. I have mini cash isa's at the moment but thats about it.

I guess my best option might be to see a IFA - is there a site or anything where I can find a local one to me? - I'm near Heathrow if that helps

Cheers

WJUK