Pensions – all in one pot?

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  • Pensions – all in one pot?
  • Premier Icon stevied
    Subscriber

    I’ve got a workplace pension that’s doing well and another, older, pension with about £20k in.
    I’m thinking of transferring the old one into my workplace one, any reasons not to?

    gonefishin
    Member

    The only reason not to would be if your old one has any guaranteed benefits or if the fees are lower in your old pension. The last one is unlikely if you are currently with a large employer.

    Premier Icon tomd
    Subscriber

    I assume you’re talking about defined contribution pots from old jobs?

    I tidied mine up a couple of years back, you need to find out what the fees are on the older pot and compare those to your current one. I haven’t moved my pot to my most recent company because my old scheme had a significantly lower fees. It doesn’t make a huge difference year to year but can add up over time.

    You really need to give your old pension povider a call and check if they do transfers and what the value would be, then check with your new pension provider.

    surfer
    Member

    What Gonefishin said. Be careful there are no benefits in the old one that would be lost. Especially if it is a defined benefits scheme.

    petec
    Member

    i moved all mine together about 6 months ago; the firm changed ours, and started allowing us to do it. The fees went down a lot, and were a lot cheaper than the old pot. So why not – no guarantees on the old one. And it’s a lot easier to look after

    Course, my dad went around muttering ‘equitable life’ and ‘all eggs in one basket’ etc

    Who knows? No one can really predict (or protect!) the future. The pension limit may come down, or apply to an individual pot only, etc

    towzer
    Member

    FYI re eggs basket, https://www.fscs.org.uk/what-we-cover/pensions/

    I read that as sipp protection being limited to 85 per company. (Suggest more research/advice tho)

    As above check charges (also check if exit or transfer charges) , but also check past average annual returns for the funds, if the old one does better…….

    Premier Icon tomd
    Subscriber

    As above check charges (also check if exit or transfer charges) , but also check past average annual returns for the funds, if the old one does better…….

    Transfer charges is a good point. The returns is an odd one though – that only really applies if you’re very actively managing your fund. If you’re just using the default settings with passive funds then it’s just a function of the market performance and the fees. If you want to actively pick funds then some schemes have more options than others, but that’s only really going to be an issue if your in the tiny majority of people that want that sort of control.

    footflaps
    Member

    Mine is split roughly four ways with four different providers (each provider with a different fund choice), just in case one get hacked etc. Far better to read than 1/4 of of my pot has gone missing than wake up and read that 100% has gone…

    Premier Icon boomerlives
    Subscriber

    Catches and caveats aside, you would be better with all pots being in the best possible places.

    I moved one of mine a couple of years ago because despite middling performance, the fees were ridiculously high.

    It wasn’t hard to find a company doing better in growth, with fees of less than 1/3 of what I was paying.

    But I do find comfort in spreading the load across a few different outfits.

    Premier Icon nwmlarge
    Subscriber

    I Was advised to keep them spread out to avoid total loss should the scheme go under.

    Premier Icon matt_outandabout
    Subscriber

    I’ve refused a few work schemes as my Stakeholder pension has out performed them all, and has 1% fee.

    Premier Icon MoreCashThanDash
    Subscriber

    I’m sure there are very good reasons to merge them, but I’ve kept my private pensions separate just in case one of them goes belly up

    Premier Icon tthew
    Subscriber

    I’ve refused a few work schemes as my Stakeholder pension has out performed them all, and has 1% fee.

    It’d have to significantly outperform a workplace one to make up for the loss in company contributions surely?

    Anyway, I’ve got separate pots, will give me options for different draw down or annuity combinations even at different ages when in a bit older.

    Premier Icon matt_outandabout
    Subscriber

    It’d have to significantly outperform a workplace one to make up for the loss in company contributions surely?

    Company still pays in, just to my choice of fund and company, not thiers.

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