Pension questions
Discussion
As I tend to be a little bit job-swap happy (4th one in 15 years) I've ended up with 3 different pensions from 3 different companies.
Now, I've had it agreed that I should get a pension starting ASAP, but as the head office is based in Belgium, they are having to do the research to find out how it all works over here in the UK.
My question is, am I allowed to use on of my existing pensions? ie: Put both my and the companies contribution into something that's already there and ticking over?
Is this worth it?
Is there any advantage or disadvantage in having multiple pensions for when I retire? (Roughly another 33 years left until that happens)
Now, I've had it agreed that I should get a pension starting ASAP, but as the head office is based in Belgium, they are having to do the research to find out how it all works over here in the UK.
My question is, am I allowed to use on of my existing pensions? ie: Put both my and the companies contribution into something that's already there and ticking over?
Is this worth it?
Is there any advantage or disadvantage in having multiple pensions for when I retire? (Roughly another 33 years left until that happens)
Thanks for the reply.
To pick up on 2 of your points
1) I thought I did know that I could transfer my pensions to one another, but my understanding was that I take a big hit on the value of the pension that is being transferred? I'm not 100%
2) I've not checked on the performance, that's something I will do in the near future.
To pick up on 2 of your points
1) I thought I did know that I could transfer my pensions to one another, but my understanding was that I take a big hit on the value of the pension that is being transferred? I'm not 100%
2) I've not checked on the performance, that's something I will do in the near future.
Dear theboyfold,
are the pensions "defined benefit" or "defined contribution"?
i.e. the pension is dependent on your final salary or on the quantity of money paid in?
A very broad brush opinion and dependent on the scheme rules is that the former's benefits are unlikely to be matched by transferring out. The latter may be but beware penalties as you have mentioned.
I've got various pension's accruing from various employments and I've left the defined beneft kinds alone and transferred the defined contribution.
The bottom line is it is a chuffing complicated decison. You (or an IFA) may take into account your age, attitude to risk, penalties, performance and likely the tealeaves in the bottom of your cup
,
regards,
Jet
EFS benfits!
are the pensions "defined benefit" or "defined contribution"?
i.e. the pension is dependent on your final salary or on the quantity of money paid in?
A very broad brush opinion and dependent on the scheme rules is that the former's benefits are unlikely to be matched by transferring out. The latter may be but beware penalties as you have mentioned.
I've got various pension's accruing from various employments and I've left the defined beneft kinds alone and transferred the defined contribution.
The bottom line is it is a chuffing complicated decison. You (or an IFA) may take into account your age, attitude to risk, penalties, performance and likely the tealeaves in the bottom of your cup
,regards,
Jet
EFS benfits!
Edited by jet_noise on Thursday 29th July 09:07
musclecarmad said:
if they are final salary or defined benefit schemes it's a little different - i presume they are not.
1. no, you don't take a hit on the value of the pension in 99% of cases - normally there is no exit charge and no set up charge for the new pension this is a common myth.
2.) performance is king. think about the poor sod i saw last week who had £200k in his pension in 1995 and it is now worth £220k - that could have been worth £400k all day long had he not stuck his thick head in the sand!
Errr, really?1. no, you don't take a hit on the value of the pension in 99% of cases - normally there is no exit charge and no set up charge for the new pension this is a common myth.
2.) performance is king. think about the poor sod i saw last week who had £200k in his pension in 1995 and it is now worth £220k - that could have been worth £400k all day long had he not stuck his thick head in the sand!
So, no more than 1% of pensions are invested in with profits funds with no MVA or terminal bonus acruing? And also within this 1% are contained all providers with zero bid/offer spreads, 100% allocation, bonuses and increased allocations when funds reach a certain value. And the adviser gets paid nothing by the new pension provider for arranging the contract? Nor does he charge a fee.
We don't know what you've got, who it's with, what you pay, how long you've had it, the type of scheme or what it's worth and without this information nobody can say what you should or should not do. If you do speak to someone about pensions make sure they are an IFA, find out what it will cost you and make sure they can properly assess what you have and how it compares with other schemes. A system called O&M pensions (used by IFA's) will provide a detailed report that will go a long way in helping you make a decision.
musclecarmad said:
theboyfold said:
As I tend to be a little bit job-swap happy (4th one in 15 years) I've ended up with 3 different pensions from 3 different companies.
Now, I've had it agreed that I should get a pension starting ASAP, but as the head office is based in Belgium, they are having to do the research to find out how it all works over here in the UK.
My question is, am I allowed to use on of my existing pensions? ie: Put both my and the companies contribution into something that's already there and ticking over?
Is this worth it?
Is there any advantage or disadvantage in having multiple pensions for when I retire? (Roughly another 33 years left until that happens)
yes they can pay into one of your pensionsNow, I've had it agreed that I should get a pension starting ASAP, but as the head office is based in Belgium, they are having to do the research to find out how it all works over here in the UK.
My question is, am I allowed to use on of my existing pensions? ie: Put both my and the companies contribution into something that's already there and ticking over?
Is this worth it?
Is there any advantage or disadvantage in having multiple pensions for when I retire? (Roughly another 33 years left until that happens)
no real advantage or disadvantage to having multiple pensions other than diversification
are you aware you can transfer all your pensions into one pot
have you reviewed the performance, asset allocation, financial strength or charges of your existing pensions and the attitude to risk? 99% of people I give pensions advice to haven't!
pm me if you wish
Is there a way of being able to find out how the pensions are performing? All the advisors have said just go to the website and have a look at the way each of them are performing. I'm just wondering if there is another way of doing this? Something one of the market comparison websites maybe?
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