Workplace Pensions

I have a workplace pension through my current employer. I have two other pensions from my previous employers as I was employed by Aon who were bought out by Capita. As I'm no longer paying into these pots would I be better off transferring them to my current scheme, assuming I can do this, or should I just leave them where they are?

Thanks.

 

I think the term is commuting them. The best advise I could give is to take proper financial advice before making a decision. it may only benefit you by a few quid but better in your pocket than somebody else's.

 

By the way I would add that I work for Capita and I was told that as far as money purchase pensions go they run one of the best schemes however as yours would now be inactive I wouldn't like to comment on how good or bad it is.

 

I would get advice as previously I was involved in a TUPE transfer.

I remember that the pension amount was not actually in £'s but units of stock. And depending on the price to transfer you lose units in the trade or something like that. May be better to leave them separate but not sure how much it costs to put them all into one.

Awful explanation I known but there are plenty of people get advice from.

 

I was once told by a financial advisor many years ago that it would generally be better to leave them all where they are depending on the comparison of fees charged as you would incur a transfer fee every time you moved it which would eat a little bit of it away. However, I stress that this was 16 years ago and much has changed since then including measures to cap fees I think. You can only know for sure, or with a degree of confidence, that you are making the right move by taking independant financial advice.

 

Thanks everyone.

We do have a pensions advisor that comes to work but it seems to be about twice a year unfortunately. It seems like the best thing to do would be to leave the other two where they are.

Mario re the Capita pension - I would think (hope) that as the money is still in the scheme even though there are no further deposits it would still grow at a certain rate as the money is still bring invested. I could be talking complete ******** however.

 

Just had a bit of a scary thought. If you were to live for 20 years post retirement, to have a £100 p/w pension, you would need over £100k in the point.

 

I think that is a reasonable assumption; they won't contribute further but the pot you have will should continue to be invested but I would check with your pensions advisor just to be certain.

 

I got a phone call last week for a free pensions review, got 1 from previous employers with over 40 grand in just doing nowt, could do with some of that now !!!

 

Yes thats right. And you should still get an annual statement telling you how its doing

 

Not many people know how their pensions work. It is advisable to get the terms of your pension and read and understand them.
For instance, if you have to finish with ill health you get half the outstanding years added to income. Ie. your pension matures at 65. You have to finish with ill health at 45. You have 20 years outstanding hence you get half 10 years added to 45 years, giving you 55 years payment as a pension

 

I'd strongly advise speaking with an IFA.

If the pensions are Defined Benefit (Final Salary) then it's generally better to leave them where they are unless there's a bloody good reason to move them (however that's too in-depth to go into!).

For Money Purchase schemes (ie Personal Pensions or Defined Contribution pension schemes) it will generally depend on the investment options available through the scheme and ongoing management costs (if fund charges, annual management fees, administration costs etc).

It's no longer an option for an IFA to simply transfer your fund on a whim and take a fee up front, they've got to prove that the advice is in your best interest and, if any ongoing fees are payable by you (ie servicing/ongoing advice costs) they've got to prove that they're actively looking after your pension and usually provide you with a report of how the fund is performing, any trades/fund switches done, ensure that the fund are in line with your risk profile etc.

A good financial adviser will charge you ongoing fees which you might feel are a bit steep at a first glance, but the ongoing cost will generally be offset by the value of the advice provided.

 

Hey Conan, not sure if I can help in any way with your question.
I worked in the mines for over 10 years and when I finished I "froze" mine until I got another job. I was told by my financial advisor that I could transfer my frozen pension to the company pension with the company I was now working for. I then got another job a few years later and transfered it all again. I stayed with the company over 10 years and they contributed a lot into it. I froze it again in 2011 when I moved to America. I get statements every year, my last was just a few weeks ago, stating it had "grown" by 10,000 GBP without any contributions. I can take my pension at the age of 55 if I need to. My pension is with Legal and General. If you want to transfer it there is a fee. I think a few hundred quid but it is worth it if a new job is going to contribute. I questioned about transferring mine to America but I was told I was told I would lose over half, so I left it frozen in England.
Dave