Pensions

Tavern

Currently have 3 pensions whilst with different employers over the years!can anyone explain to me the advantages and disadvantages of contracting in and contracting out?i am currently contracting in for retirement.Find it all a bit confusing to be honest

suzisausage

oooh glad you asked that question. i've got 2 pensions with old companies, got absolutely no idea how much money or who with to be honest, how do i go about getting that money put somewhere else in another current pension?

Tavern

Tried to do this real nightmare as 2 are with standard life but was told they would not do this for me,the other pension scheme has been frozen but makes decent gains!My dilemma is i have just been offered another job and this would mean going with a different pension fund so would be up to 4 pensions!i take the company pensions because they always put their lump in as well

StanmoreAddick

Ok- normally i would say take the advice of a independant finacial adviser, it makes sense but the gist of any real advice would be.

1/ If you are happy with the growth/performance of the different funds, keep them as they are, it's no real hardship having a number of pension funds, and when you come to retire, then they can be lumped together, if it is the right thing.

2/ If you transfer them, assuming they are "money purchase"( you've paid in this, your employer's paid in that) rather than "final salary"( you've worked there for this long so your pension will be this % of your final salary) then, in the vast majority of cases, you will be worse off because a penalty will be applied to the fund as it leaves and a new set up charge will be applied when it goes into the new plan.

3/ lots of individual companies will not do this, unless the business is submitted by an IFA, who then takes resposibility for the sale and the advice given rather than the individual life company.

Hope this helps.

LoOkOuT

You should be investing in gold... FACT! ;-)

Badger

Better off keeping it at home under the floorboards,lot's of old people die with millions that they have stashed over the years,Fact.

Oggy Red

You could be right there, badger.

French girl at work, her 89 year old Great-Gran has just pegged it after scrimping and making do all her life.
The family have just found out she has left behind €1.2 million Euro's.

And she lived in their version of a council flat.........

Badger

Exactly, have also heard about tramps leaving a similar amount, well strange but it makes sense, why save for a pension anyway,better of keeping it yourself, just another tax to pay.

Tavern

Thanks for all your comments