Do I move my old M&S Pension to BP?

mini_lidi · 5 July 2017 at 9:52AM

Hi guys,

After some advice. When I was 18 I worked at m&s till I was 22 and paid as much as I could into my pension. I left m&s 4 years ago and just recieved my annual statement telling me how much it's currently worth just over £20k

Is it worth me transferring this money to my new works pension pot? Want to maximise the potential return for when I finally retire in the future.

Apologies if I'm wrong, pensions isn't my strongest point of knowledge at present

MallyGirl · 5 July 2017 at 10:50AM

you need to see whether the transfer value is the same as the pot value
you need to look at how it is invested - putting all your eggs in one basket is not usually the best plan
what are the fees being charged now it is dormant - will it just get eaten away because you are no longer contributing?
what is the thinking behind transferring - just an easier life? Many people have a trail of works pensions behind them when they retire.

There isn't a simple answer

xylophone · 5 July 2017 at 3:06PM

You are now a member of the BP Defined Contribution Pension Scheme?

https://www.aegon.co.uk/support/faq/Understanding-our-products/retirement-products/workplace-pensions/your-pension-plan-with-bp.html

When you were with M&S, were you a member of the old DC Retirement Plan ( likely if you joined in 2009) or of the old Defined Benefit Pension Scheme?

mini_lidi · 5 July 2017 at 8:39PM

xylophone wrote: »

You are now a member of the BP Defined Contribution Pension Scheme?

https://www.aegon.co.uk/support/faq/Understanding-our-products/retirement-products/workplace-pensions/your-pension-plan-with-bp.html

When you were with M&S, were you a member of the old DC Retirement Plan ( likely if you joined in 2009) or of the old Defined Benefit Pension Scheme?

The M&S pension was provided but legal and General and I'm sure was called something like "Pension saving plan"

xylophone · 5 July 2017 at 9:24PM

Yes- as far as I know, M&S had a DB plan but at some point they closed it to new members and introduced a DC Retirement Plan.

Then very recently, (there was a post from a member of the DB Scheme) they closed the DB pension to new accruals for all staff and introduced a DC pension for all.

Presumably you were permitted to leave your benefits in the L&G / M&S retirement plan when you left.

I found this

https://www.legalandgeneral.com/workplacebenefits/microsites/marksandspencer/

Members who were previously in the Retirement Plan on the 30 June 2012, or the DB Scheme and who agreed to leave it on the 31 March 2017, may have slightly different benefits. They should refer to the paperwork issued to them at the time of their transfer.

You would need to compare what is on offer in the M&S plan - fees/funds etc with what is on offer from Aegon - have you checked that Aegon would accept a transfer in?

AnotherJoe · 6 July 2017 at 6:18AM

Bottom line is, it's impossible to know because there are too many variable factors including the major unknown of future investment performance between the two schemes. And you don't give any clue as to the growth of the fund over the last 4 years, it's £20k now but what was it 4 years ago?

In general, given diversification is a good thing when looking long term, I'd say keep it separate for now and track the growth of the M&S scheme over the next few years and see how it goes.

Note that whilst most years it will increase, some it will decrease, so you'd need to average it since you started, and not just think if it falls say 10% or even 20% in one year that means it's awful you need to compare that with what worldwide markets are doing. In the meantime educate yourself on the subject, for example try the monevator blog.

Do I move my old M&S Pension to BP?

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