Pensions – changing company

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  • Pensions – changing company
  • Premier Icon crispo
    Subscriber

    I have been working for a company for the past 2 years since leaving university. I joined the company pension as I put in abit and the company did too. I think I have about £4k in it to date.

    I am (all paperwork going through well) about to move jobs to a different company. I will want to start the company pension there too.

    Do I just leave my old one or can I sort of transfer the balance across to my new one? Seems like a bit daft to just have a pension for £4k as thats going to be worth pretty much nothing/year in 40 years time when I come to retire.

    Any help is great, thanks!

    b r
    Member

    Eggs and baskets – leave it where it is.

    I’ve about a dozen all told, never amalgamated them and the more I read of pensions issues the happy I am.

    And £4k in 40 years could be worth a decent amount (depending on the market etc).

    gusamc
    Member

    Wherever it is manage it on at least an annual basis.

    Compare the charges on it with the market average.
    Compare the growth it makes with the market average.
    Moving stuff usually costs money so you need to add it all together and do the maths.

    Some Questions.
    – If your fund does 2% growth and the charges are 2.1% is your fund growing or shrinking.
    – do you like paying more than average
    – do you like getting less than average
    – do you think someone who is paid commision at point of sale or for transferring or an annual management % BUT not based on growth etc has your best interests at heart

    jonba
    Member

    Compare it your new one and see if it is any better or if it offers any other benefits. I did the same as you and when I moved after two years decided to move it as it is bugger all in pension terms* so easier to have in one pot. If it was 5 figures I’d think a bit harder.

    *assuming 4k savings in 2 years means you are expecting to be on a reasonable wage and saving for a pension from your early twenties.

    It was a right pain to move. They wanted me to sign disclaimers on risk or get an IFA to write them a letter. Took for ever to get it done.

    teef
    Member

    Transfer it into a SIPP and manage it yourself – don’t worry if you don’t know much about managing money – nor do the sold professionals and it’s a good opportunity to learn with a small amount.

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