Transfer to occupational pension?

longrrr

I am in need of some advice.
I am 34 years old and have contributed to a personal pension for 13 years. In January this year I made a career change to teaching assistant which I hope to remain in until retirement. An occupational pension is provided and I have cancelled the contributions to my personal pension, but I am unsure if I should transfer my personal pension to my occupational pension.
I understand there are charges for leaving the pension "paid up" and penalties for transferring.
I would be very grateful for any help as I contacted an independent financial advisor in March who has been in contact with my pension company, but has only offered me apologies.
Thanks in anticipation!!

DavidLaGuardia

A thirteen year old pension may or may not benefit from reviewing in respect of either:
1. Transferring to one of the cheaper pensions pension plans that have come about since the introduction of stakeholder pensions (this may or may not be a stakeholder depending on what you want.
2. Transferring to the teachers' superannuation shceme you mention.

It's a complicated area and one you need professional advice on. In theory, the purcahse of additional years in the teacher's scheme shcould be expensive due to what the scheme offers and all its bells and whistles. This is not always the case -sadly for the tax payer who loses when these statutory schemes offer too much for too little, but I don't blame individuals for taking advantage.
Some insurance companies can take months with pension administration (although even the worst should have provided sufficient forecasts by now). Phone you adviser and tell him/her to give you a weekly progress report and threaten to go elsewhere unless he/she does.

dunstonh

I transact significantly in pension transfers (have over 70 on the go at present) and there are a handful of cases that started around March time. Mostly down to having to repeat the request as the wrong information was sent or in one case, the insurance company more or less made up the figures and I needed to re-request them to get correct figures. 4th request in and they still havent got it right and the figures each time they send them are significantly different.

I have another dozen or so which will be chased this week that were requested in June and havent fully arrived yet. So don't jump on the advisor yet. Better to find out what the hold up is.

You should also be wary against cancelling the existing scheme without verifying if there are guaranteed annuity rates (GAR). Although in 1992, when the scheme started, there were not that many left doing those, these GARs can be very valuable. It can make contributing into the scheme worth continuing in addition to joining the occ scheme. Its a remote possibility for a 1992 plan but you dont know if you dont check.

EdInvestor

Hi longrrr

What company is the PP with and what fund(s) is it invested in?

At least we can look at how it's been performing and what alternatives there might be if you leave it where it is.Second the comment re GARs.

It's also often handy to have a pension that you can access earlier than your official retirement date, just in case you find yourself unexpectedly unable to work earlier than planned, which is not at all uncommon.

The penalties payable for taking a good company pension early can often be quite draconian, so if you have an alternative source of temporary funds, this can somethimes be very helpful.

longrrr

Thanks for all the answers to my request. Greatly appreciated.
The PP is with Save and Prosper - 100% Save and Prosper Managed. Will consider your advice re:early retirement - very desirable!!

EdInvestor

Fund no 2395

This looks like quite a good fund

What charges will you be paying having suspended contributions? This is where you can find your pension eaten away over time.

longrrr

I will get S and P to send charges in post and let you know. I was told over the phone but it was in "%age of units" - another language to me!!!