old pension ceased new one started

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
4 replies 2.7K views
divadeedivadee Forumite
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Mr divadees company pension scheme has stopped and a new one started he had a choice on the new pension of either money pension or final slary. We opted for final salary after some independant advice, but now a new query has arisen!!

We need to decide what to do with the funds built up in the old 'retirement trust'. The options are.

1) Transfer benefits to the new pension scheme final salary.

2) Transfer benefits to another approved scheme.

3) Leave the benefits in the old 'retirement trust' scheme. But they have made him aware that they might wind up the old trust and then tranfer the funds to an individual policy with an insurance company.

Any tips on what options to take and the risks with each one greatly appreciated. We are thinking of just moving the money to the final salary scheme, but pros and cons of all three would be appreciated ;D ;D


  • dunstonhdunstonh Forumite
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    Its not something where you can get a direct answer on here as there are too many variables. Retained benefits of the old scheme would need to be looked at, along with the transfer values. Are the penalties if it was transferred now which maybe wouldnt be in place later on. Even if it closes later and has to be moved, you could then get your IFA to move it to another provider. It wouldnt be force moved unless you decided to leave it to the company.

    Go back to the IFA you saw and get him to answer.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • DiggingOutDiggingOut Forumite
    770 Posts
    One thing to consider is the stability of the companies. For instance, if the new company goes under, he loses both his job and potentially a significant part of his retirement provision. If you transfer his prior pension into this one, that also is at risk.
    I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.

    If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.

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  • divadeedivadee Forumite
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    I very much doubt this company is at risk, MAJOR retail chain!!! BUt hadnt thought along those line digging out, you have given us something else to consider.

    THis is why I love this site, so many other perspectives you hadnt thought about!!!!
  • PalPal Forumite
    2.1K Posts
    Worth remembering that the risk of an established company going under is usually very low, and there are new protections being brought in to protect people in those circumstances anyway. In practice most struggling companies are bought by other companies long before they go under.

    I would only consider company stability as a possible issue if the company was very small or was obviously already going down the toilet. Otherwise the risk is so small its almost certainly not worth considering.
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