Pensions: What to do when you need to transfer?

larbakium

Hello,
I am looking for some views and options when it comes to pension transfers.
The scenario is that One is ceasing employement with an employer that was supporting a pension plan and now they will move into a new employer which does not.

So transfering the pension into a similar company plan is not an option. The options seem to be either:
1. leave where it is and the individual absorbs the cost of fees until a new path is selected for the pension fund.
2. transfer it into some form of Personal Retirement Bond (Buy-out-Bond)

I am not sure I understand opt 2, but looks like this opt allows for the individual to continue to contribute into the pension, but very likely the fees and conditions are not as benefitial as opt #1

With opt#1 the individual is no longer able to contribute into the pension so it seems that the current fund has the certaintly that will be deducted from yearly fees and has whatever uncertaintly to grown or decrease based on the fund performance.

Any thoughs on what would be best approach or what items or areas to understand to support a decision?

Thank you

Heres Johnny

larbakium wrote: »

Hello,
I am looking for some views and options when it comes to pension transfers.
The scenario is that One is ceasing employement with an employer that was supporting a pension plan and now they will move into a new employer which does not.

So transfering the pension into a similar company plan is not an option. The options seem to be either:
1. leave where it is and the individual absorbs the cost of fees until a new path is selected for the pension fund.
2. transfer it into some form of Personal Retirement Bond (Buy-out-Bond)

I am not sure I understand opt 2, but looks like this opt allows for the individual to continue to contribute into the pension, but very likely the fees and conditions are not as benefitial as opt #1

With opt#1 the individual is no longer able to contribute into the pension so it seems that the current fund has the certaintly that will be deducted from yearly fees and has whatever uncertaintly to grown or decrease based on the fund performance.

Any thoughs on what would be best approach or what items or areas to understand to support a decision?

Thank you

I'm a QFA and worked in pensions a lot.
My advice is to leave it where it is for the moment until you are settled in new job and you know if you're staying there or not. You may be on the move again soon. Mandatory pensions coming to workplaces soon too but nobody knows the ins and outs of it,some rules might change. I've met people that had old workplace pensions with no idea how to contact old company (some of which no longer existed), which pension provider they were with, how much was in it, how it was invested, what the charges were. Zero clue about them which in some cases were 6 figure sums of THEIR money.

I don't advocate people that move jobs a lot leaving pensions behind them in multiple companies because you will lose complete track of them. That's where the PRB comes in to play and you can keep multiple workplace pensions in same place after you leave. Get a good understanding of how it works before doing anything. Take your time, but don't forget about it. Also remember if you move address or anything to update your details.

Henry Ford III

PRB is a single premium only. Get proper advice.

larbakium

Henry Ford III wrote: »

PRB is a single premium only. Get proper advice.

Where or who are the best to advise? The company holding the pension scheme or some independent body?

Henry Ford III

larbakium wrote: »

Where or who are the best to advise? The company holding the pension scheme or some independent body?

Find an Authorised Advisor on the Central Bank register.