Pensions - where to get advice?

[ph5172]

I have started new employment and have just been given my transfer values of my pension from my old employer scheme into the new one. 
I have only ever had the one job so have never broached the pension transfer scenario. 
at nearly 40 it’s something that I imagine may have a big impact if I get it wrong.

where would be the best place to actually get some advice if I present the figures From my old scheme and details of the new scheme. 
 

it may sound daft but I honestly never moved employment before. 

Edited April 12, 2020 by ph5172

[Lloyd90]

Only certain people are legally allowed to give you advice ... qualified financial adviser? 

I will ask the few I know and drop you a PM if you want. 

[TR1]

A lot will depend on the value of the pension. 
Independent Financial Advise is probably the best route but can be costly.

 

 

 

 

 

 

[ph5172]

Just now, Lloyd90 said:

Only certain people are legally allowed to give you advice ... qualified financial adviser? 

I will ask the few I know and drop you a PM if you want. 

Brilliant if you could that would be great. 
the ones I found were about transferring into private pension schemes not employer to employer 

[mellors]

13 minutes ago, ph5172 said:

I have started new employment and have just been given my transfer values of my pension from my old employer scheme into the new one. 
I have only ever had the one job so have never broached the pension transfer scenario. 
at nearly 40 it’s something that I imagine may have a big impact if I get it wrong.

where would be the best place to actually get some advice if I present the figures From my old scheme and details of the new scheme. 
 

it may sound daft but I honestly never moved employment before. 

Pensions advisory service.

It's free.

[ph5172]

4 minutes ago, TR1 said:

A lot will depend on the value of the pension. 
Independent Financial Advise is probably the best route but can be costly.

 

 

 

 

Thanks all something to look into

Edited April 12, 2020 by ph5172

[AVB]

7 minutes ago, ph5172 said:

Brilliant if you could that would be great. 
the ones I found were about transferring into private pension schemes not employer to employer 

If you are talking about moving you old pensions into your new employers scheme then speak to the new provider. They will advise how to do it. You could also leave it in the old scheme. 

[henry d]

My union (FBU) sorted mine for me FOC it was one of the best things I ever did. Good luck with it 👍

[ph5172]

48 minutes ago, AVB said:

If you are talking about moving you old pensions into your new employers scheme then speak to the new provider. They will advise how to do it. You could also leave it in the old scheme. 

I have all the info I just want to know would I be better off leaving in my old scheme or transferring it into my new employers. 
 

I will give the pension advisory service a bash. 
 

many thanks all

[AVB]

Just now, ph5172 said:

I have all the info I just want to know would I be better off leaving in my old scheme or transferring it into my new employers. 
 

I will give the pension advisory service a bash. 
 

many thanks all

The Pensions Advisory Service are good at advising your options and the risks but will not advise on the performance of scheme 1 vs scheme 2. They are a good first point of call as you may have some restricted benefits hidden in your old scheme that you would lose by transferring. If you want advice on the performance of scheme 1 vs scheme 2 you will need to either do your own research or pay for an IFA. 

My view on the things you should look for are: 

1) The investment charges charged by each scheme

2) The range of funds that you can invest in (if any other than 'lifestyle' funds).

Out of interest who are the old and new scheme providers?  

[oowee]

I am not sure on the latest but this may also be relevant.

There is also an issue of security and role forward values. Your old employers scheme if left where it is will role up into a closed fund where it will continue to accumulate value but be independent of your old employer (i think). If you transfer to a new scheme all of your cash is in one pot with one employer. Whilst the employer has to follow certain pension rules it can be the case that employers borrow from the funds when they are in credit and dont pay back in so quickly when they are in defecit. There is likely to be some value on maintaining a breadth of pension investments beyond a single provider. 

Dependending on the value of the pot, it is almost always worth paying for independent advice on such choices, not ony can they be complex but the decision as to what is best will to some degree be dependent on your aspirations and circumstances. 

[The Heron]

1 hour ago, TR1 said:

A lot will depend on the value of the pension. 
Independent Financial Advise is probably the best route but can be costly.

 

 

 

 

 

 

Yes sound advice keep of the Internet it's full of sharks in this area I would suggest use one on recommendation if possible and one you can see face to face.

[JohnfromUK]

1 hour ago, AVB said:

If you are talking about moving you old pensions into your new employers scheme then speak to the new provider. They will advise how to do it. You could also leave it in the old scheme. 

That is what I did about 20 years ago when I moved jobs.  Never regretted taking that advice.

50 minutes ago, oowee said:

Dependending on the value of the pot, it is almost always worth paying for independent advice on such choices, not ony can they be complex but the decision as to what is best will to some degree be dependent on your aspirations and circumstances.

In general I agree, but IF the new employer has a decent provider, that may well be another route.  As you say - circumstances of both old and new schemes, values etc. mean there is no 'correct' answer that suits all.

[gdadphil]

Hi I used to be Head of HR and it's always a complex and personal issue so Pensions Advisory Service is certainly the place to go.  but also look at the websites of the old and new schemes if possible to check out questions. The scheme administrators will also often answer questions over the phone. 

THERE ARE SHARKS OUT THERE

(real story follows... I was in local govt and we took over the  minor functions of another authority and one of their workers was terminally ill. it transpired he had been "advised" to move his local govt pension to a private pension where it had little value. so he had nothing of value by way of widows pension.)

You need to ask as many questions as you can because if , as seen above, you transfer the pension value from the old scheme,  you can't go back. You can ask the old and new scheme what their transfer "window" is (often it is always open so reducing the urgency giving you time to think through all your options). 

If you are in a good Trade Union get their advice if available.

But you should do as much as you can.   You also need an idea of what you want to do as far as retirement is concerned. So if,for example,  you are wanting to retire at an age before the old scheme retirement date; you may not be able to access the pension earlier than originally scheduled.  

1 You have the transfer value from your old Pension Scheme, but do you know what will happen to the pension if you leave it where it is?  what will it produce on retirement? were you in a defined benefit scheme ie you have "earned" x years and y months of service in the scheme against a calculated leaving salary? or was in a "pot" of investments which have a value on the date the monies are eventually released to buy a pension?

2 what type scheme does your new employer have ? again is it defined or does the money go into a "pot" .

3 Not always but often transfer values will be reduced because of the scheme costs of the transfer (both out and in) so if you are going into a defined benefit scheme how much will you get by way of years in the scheme? 

4 depending on your current age/years to retirement does either scheme offer you an estimate (it's only that) of the future value at retirement? so you have a comparison

 More questions than answers i'm afraid but don't rush into a decision

atvb 

Gdadphil