Combining Multiple pensions?

sreppaw

I am 25 and work in IT and have changed employer 4 times in the last 5 years. Each previous 3 employers had a stakeholder pension scheme which each time I joined to recieve the employer contributions. (They would only contribute to the group scheme)

This has resulted in me having 4 different stakeholder schemes each with 6-12 months in contributions. Would it be better to combine these, or to leave them separate?

dunstonh

someone asking the same this morning:

http://forums.moneysavingexpert.com/showthread.html?p=9997657#post9997657

sreppaw

ah yes,
Is it possible (legally) to move an existing stakeholder pension away from a group scheme, but keep the same provider?

I think that I may keep a private stakeholder pension to 'hoover up' these smaller pots as if I continue at this rate, by the time I reach (state) retirement age in 43 years I will have over 30 pensions.

I expect I will change employer many times yet, although perhaps not as regularly as at the start of my career. It seems silly to me to basically throw away employer contributions and equally to have potentially dozens of small pots.

I have found it quite annoying that employers will only start contributing after three months and then only into the group scheme. Most of my peers seem to change jobs fequently, often switching between contracting and short periods of full time employment. The majority of them do not have pension schemes, even though they are generally well paid.

Would it not be better to have a personal stakeholder pension which I can keep and different employers can all contribute to the same pot as I move?

dunstonh

Is it possible (legally) to move an existing stakeholder pension away from a group scheme, but keep the same provider?

Some will allow it internally. Some wont. Nothing to do with law but their own internal proceedures.

I have found it quite annoying that employers will only start contributing after three months and then only into the group scheme.

Look at it from the employer view. They get one direct debit this way and one system to input the data into. 100 employees all using different schemes would be 100 lots of input and 100 direct debits.

Would it not be better to have a personal stakeholder pension which I can keep and different employers can all contribute to the same pot as I move?

If they are all money purchase schemes then a personal pension is probably your best option. Most personal pensions are better (and even potentially cheaper) than stakeholder pensions. Indeed, the stakeholder pension is expected to be withdrawn from new business from 2012 as there will be no need for it any more.

EdInvestor

The best thing for people in this situation IMHO is to scoop up all the old money purchase pensions and put them in a SIPP at a discount broker.

eg https://www.h-l.co.uk

Then, every time they switch jobs and end up in a new GPP, on departure they can transfer the GPP fund into the SIPP.

An online SIPP is a lot easier to manage admin wise than a pension at an insurance company and also is unlikely to get out of date (as far as charges and fund offerings are concerned) - as insurance co pensions tend to do. It should also offer a large selection of the best funds.

dunstonh

An online SIPP is a lot easier to manage admin wise than a pension at an insurance company

It has to be as a SIPP has tens of thousands of investment options. THe potential to get it wrong is massive. So, any admin enhancements are a must. A personal pension will typically have in the hundreds to thousand mark.

and also is unlikely to get out of date (as far as charges and fund offerings are concerned) - as insurance co pensions tend to do.

Modern personal pensions tend to be built as flexible as SIPPs. There are still some pensions around that lack the ability to adapt without a relaunch or switch but you just avoid those ones.