I left a company after about seven and a bit years and I’m unsure what to do with that pension pot. It was with L&G and my new firms pension is also with L&G. I can transfer the old one across but is this the best course of action?
I see Moneybox has a pension option, SIPP, etc...
Yours,
Financially Unsavvy
I can't help you regarding the best course financially, but when you come to retire the fewer separate pensions you have the simpler everything will be, from actually claiming them, through to taxation.
I started claiming my pensions this year on my 55th, four different funds, and although not a nightmare by any means, many hours online, on the phone, form filling, and posting documents would have been saved if they were all in one pot.
Although they're both with L&G they may be different schemes with differing investment vehicles, strategies, costs. Worth asking L&G to explain the differences and then perhaps pay a nominal fee to a FA to guide you?
Good advice. But try getting IFA regards pensions. Personally I put all my smaller plans into an Aviva account into which was fed from my employer when I was working. Easier to manage one pension plan.Originally Posted by Suds
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
Advice will be determined by what type of stranded pension you have - defined benefit or defined contribution. If it’s the former it’s almost impossible to move now. If it’s the latter, you need to speak to an IFA to assess performance, risk profile and charges. It may make sense to move it if you can get the same performance or better with a lower risk profile and charges, it may not. L&G tends to be an average performer but generally low costs which partially compensate the poorer performance. Remember if you move there is a charge against the pension pot so the IFA needs to understand your retirement plans etc.
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