Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • freestyle_gus
    • By freestyle_gus 12th Jul 18, 11:29 PM
    • 15Posts
    • 3Thanks
    freestyle_gus
    Transfer dormant stakeholder into Civil Service Alpha
    • #1
    • 12th Jul 18, 11:29 PM
    Transfer dormant stakeholder into Civil Service Alpha 12th Jul 18 at 11:29 PM
    I have been working for the civil service for almost a year and am in the Alpha defined benefit pension. The Alpha scheme looks to be a decent pension from the research I have done.

    The question is. Should I transfer my 30,000 pension pot (old company stakeholder that I am no longer paying into) into the Alpha pension? It will give me 3750 a year as part of the pension if I transfer. Can I expect more than this by leaving the current pot in the stock market?

    I'd appreciate any thoughts
Page 1
    • Dox
    • By Dox 13th Jul 18, 12:02 AM
    • 743 Posts
    • 508 Thanks
    Dox
    • #2
    • 13th Jul 18, 12:02 AM
    • #2
    • 13th Jul 18, 12:02 AM
    I have been working for the civil service for almost a year and am in the Alpha defined benefit pension. The Alpha scheme looks to be a decent pension from the research I have done.

    The question is. Should I transfer my 30,000 pension pot (old company stakeholder that I am no longer paying into) into the Alpha pension? It will give me 3750 a year as part of the pension if I transfer. Can I expect more than this by leaving the current pot in the stock market?
    Originally posted by freestyle_gus
    Depends how old you are and how successfully your stakeholder funds are invested.
    • freestyle_gus
    • By freestyle_gus 13th Jul 18, 7:29 AM
    • 15 Posts
    • 3 Thanks
    freestyle_gus
    • #3
    • 13th Jul 18, 7:29 AM
    • #3
    • 13th Jul 18, 7:29 AM
    I'm 40. The stakeholder is invested with Scottish Widows. Not sure of the fund. I think it's a cautious one.
    • AnotherJoe
    • By AnotherJoe 13th Jul 18, 7:46 AM
    • 9,833 Posts
    • 10,975 Thanks
    AnotherJoe
    • #4
    • 13th Jul 18, 7:46 AM
    • #4
    • 13th Jul 18, 7:46 AM
    I have been working for the civil service for almost a year and am in the Alpha defined benefit pension. The Alpha scheme looks to be a decent pension from the research I have done.

    The question is. Should I transfer my 30,000 pension pot (old company stakeholder that I am no longer paying into) into the Alpha pension? It will give me 3750 a year as part of the pension if I transfer. Can I expect more than this by leaving the current pot in the stock market?

    I'd appreciate any thoughts
    Originally posted by freestyle_gus

    That's a fantastic return, much better than you'd expect from the SM, plus its risk free, so definitely worth doing.
    • hugheskevi
    • By hugheskevi 13th Jul 18, 8:37 AM
    • 1,993 Posts
    • 2,485 Thanks
    hugheskevi
    • #5
    • 13th Jul 18, 8:37 AM
    • #5
    • 13th Jul 18, 8:37 AM
    I have been working for the civil service for almost a year
    If you want to transfer-in you need to do it within 1 year of starting employment, so you may need to decide quickly.

    Should I transfer my 30,000 pension pot (old company stakeholder that I am no longer paying into) into the Alpha pension? It will give me 3750 a year as part of the pension if I transfer. Can I expect more than this by leaving the current pot in the stock market?
    Assuming a 4% drawdown rate, you would need a rate of return about 6.4% (including inflation) to match the alpha pension. With a drawdown rate of 5% the return would be 5.5%.

    You say below that you think you in a cautious investment. You are probably heavily invested in gilts and bonds as much as the stock market.

    Not sure of the fund. I think it's a cautious one.
    With 20+ years left until you reach retirement, why do you feel the need to be cautious? That itself may be a good reason to transfer, as you are going to struggle to get sustained returns of 5-7% per year with cautious investments.

    I'd appreciate any thoughts
    Stakeholder pensions are not used much now, so even if you do not transfer into alpha you may nonetheless wish to transfer the fund to a more modern arrangement.

    The Civil Service is in the process of switching its Defined Contribution pension arrangements to a Legal and General Mastertrust. One option would be to open a Civil Service AVC arrangement with a minimal monthly contribution and transfer the pensions into the AVC. You could of course transfer elsewhere.
    • freestyle_gus
    • By freestyle_gus 13th Jul 18, 1:45 PM
    • 15 Posts
    • 3 Thanks
    freestyle_gus
    • #6
    • 13th Jul 18, 1:45 PM
    • #6
    • 13th Jul 18, 1:45 PM
    Thanks so much, this is great information!

    I didn't intend to be cautious, that's the fund Scottish Widows put it into when I stopped contributing.

Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,249Posts Today

8,194Users online

Martin's Twitter
  • What does resilience mean to you? For me it?s understanding my own limitations, physically and mentally? What about? https://t.co/CuuRLoQFTr

  • Donald Trump has apologised and admits he said would when he meant "wouldn't" when siding with Putin over US inte? https://t.co/z1CRJSkEO1

  • About to watch #AckleyBridge on C4+1. I do enjoy it, even though I always feel somewhat stressed and depressed after watching.

  • Follow Martin