To transfer or not

Scottish_Lassie · 20 June 2018 at 7:04PM

Hi,
Wondering if anyone can point me in the right direction for advice/information?

I have 3 pensions at the moment. The largest one which I'm currenty contributing to is defined contribution pension. I've started to look into transfering the other much smaller 2 into the current one. One totals about £20k, the other about £2k. The £20k pension is a defined benefit scheme and I need advice on whether I should transfer into the current one, I was all for it just so they are all in one place but I'm starting to understand that pensions aren't as simplistic as that ;-)

Any advice on where to start?

kidmugsy · 20 June 2018 at 7:08PM

Personally I'd start by looking at the terms of the DB pension. If it offers full index-linking - i.e. inflation-protection - without a cap, I'd keep it. I have no way of knowing whether you'd be wise to keep it.

If the little one has no special advantages that you'd be giving up it may be worth transferring into your current one. On what you've told us I can't judge though.

Scottish_Lassie · 20 June 2018 at 7:14PM

Thanks for the reply, appreciate that you don't have full information but I'll delve into the details and see what I can understand!!
As for the small one, the minimum transfer balance into my current pension is £10k so I have to move both of them or none of them.... very frustrating!

Brynsam · 20 June 2018 at 7:31PM

Scottish_Lassie wrote: »

As for the small one, the minimum transfer balance into my current pension is £10k so I have to move both of them or none of them.... very frustrating!

Who is your current pension with - and what sort of pension is it: group personal pension, stakeholder pension, SIPP - any of those ringing bells?

xylophone · 20 June 2018 at 8:18PM

The £20k pension is a defined benefit scheme

How do you know it is valued at £20,000?

campbell19925 · 21 June 2018 at 12:45PM

Scottish_Lassie wrote: »

Hi,
Wondering if anyone can point me in the right direction for advice/information?

I have 3 pensions at the moment. The largest one which I'm currenty contributing to is defined contribution pension. I've started to look into transfering the other much smaller 2 into the current one. One totals about £20k, the other about £2k. The £20k pension is a defined benefit scheme and I need advice on whether I should transfer into the current one, I was all for it just so they are all in one place but I'm starting to understand that pensions aren't as simplistic as that ;-)

Any advice on where to start?

9/5/10 its best to keep a DB scheme where it is. The best thing you could do is a free pension review to get everything explained to you in plain english. I think pensionwise offers this service so might be worth having a look at it.

jamesd · 21 June 2018 at 2:35PM

Scottish_Lassie wrote: »

The £20k pension is a defined benefit scheme and I need advice on whether I should transfer into the current one

Roughly how old are you? Anywhere close to retiring?

Transfers of defined benefit pensions can be for life changing amounts but 20k is usually too little to do that. Which causes me to suggest leaving it where it is to provide a little extra income that's guaranteed.

If you're close to retiring and perhaps also with little saved for retirement I might think differently. In such cases transferring then deferring claiming the state pension could pay more.

Another possible shift would be if illness or lifestyle factors substantially reduce your life expectancy.

To transfer or not

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