Shall I consolidate my pensions?

PJD · 11 October 2016 at 10:25AM

When I was very young (30 years ago), my Mum opted me in for some sort of tax relief scheme which put money into a pension (Friends Provident). I have a lump sum sitting in there today (now Friends Life).

I have a, larger, company pension, with Standard Life, - a couple of Black Rock schemes, with money invested across a number of healthy shares (Unilever, Microsoft, Lloyds, British & American Tabacco,, Toyota etc).

I know very little about pensions, but was wondering whether it would be a good idea to transfer the lump I have with Friends Life into my company pension?

Two pros spring to my clueless mind:

1. My understanding is that Standard Life is a very solid and reputable company.

2. Easier to manage when all is in one place.

And a con

1. Putting all my eggs in one basket (however, the friends life fund is comparatively small anyway).

Any constructive advice would be much appreciated.

Linton · 11 October 2016 at 12:24PM

There is no problem having multiple pension pots and no serious risk having only one. Both Standard Life and Aviva who own Friends Life are very large FTSE100 companies that operate across the world. So whether to merge is a matter of the relative costs and benefits of each scheme. The FL pension being 30 years old may have useful guarantees which you would lose if you transferred-out so you should check.

citycastaways · 11 October 2016 at 5:35PM

Hi,
I am in a similar situation, I have two frozen pensions last transfer valuations Aviva £12,500 and standard Life £17,500, I have a Scottish Widows company pension which has even less in it and am thinking of putting them all together Scottish Widows annual charges are lower than the other two and during a discussion with an advisor from SW whom came to do a presentation at out works he told me it would be fine? of course he works for the company? any other views out there would be appreciated.

Thanks

dunstonh · 11 October 2016 at 6:12PM

I have two frozen pensions last transfer valuations Aviva £12,500 and standard Life £17,500

They wont be frozen.

I have a Scottish Widows company pension which has even less in it and am thinking of putting them all together Scottish Widows annual charges are lower than the other two and during a discussion with an advisor from SW whom came to do a presentation at out works he told me it would be fine?

That is one option. He can only sell his own option. How to the SW charges compare with a standalone individual plan?

citycastaways · 12 October 2016 at 8:46AM

Hi, Thanks for your reply's

Aviva pension charges .875% per year

Standard Life 1%

Scottish Widows are .2%

I can see there would be a saving on the charges, just not sure if they perform better than the others, I think it also gives more flexibility than the Aviva one I have.

Thanks

dunstonh · 12 October 2016 at 9:58AM

just not sure if they perform better than the others,

Scottish Widows managed funds are usually awful. If there is a range of index trackers available then they can be used.

Shall I consolidate my pensions?

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