Small Pensions Pots - combine??

stagey_2

My husband has two small pensions taken out before 1988, which have been paid up for some time - the total guaranteed benefit from both is approx £3800 pa - I'm not sure what the actual 'pot' is worth - but would it be better to combine them if allowed? They can be paid next year when he is 64 another smaller (even!) one gets paid in 2010 at 65.

thanks

dunstonh

but would it be better to combine them if allowed?

Maybe, maybe not.

There could be guarantees on them which are attractive. They could have higher or lower charges than modern alternatives.

Pensions typically have no maturity date. You select when they mature. It may make sense to combine them and purchase the annuity all at once. You can often get a better deal that way (the higher the value the better the annuity rate).

EdInvestor

Be very careful about doing anything with these policies. Are they Retirement Annuity Contracts?

the total guaranteed benefit from both is approx £3800 pa - I'm not sure what the actual 'pot' is worth

You can find out how much the pots are worth and then check roughly what you would get if you bought an annuity on the open market here:

https://www.fsa.gov.uk/tables

Go to the annuities section.Most of these RACs had guarantees which will pay out higher annuities than the market rate,so you will do better to stick with them.