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Stevo985

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Couldn't find an appropriate topic so started a new one.

 

I know people won't be able to give me specific advice about pensions, so I'll keep it generic.

 

I have two pensions pots. One from when I worked at JLR, and one from my new company.
My intention was to transfer the pension from my old company into the new one so it's all in one pot... assuming that's possible.

 

So firstly, is that possible? Originally they were both with Zurich, but one has since been bought out by Scottish Widows (with the other one to follow)

Secondly, are their any advantages to keeping them separate? Again I know people won't be able to give me specific financial advice. So I guess I'm asking are there any benefits to having two separate pension pots that I should consider before I make my own decision?

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8 minutes ago, Stevo985 said:

Couldn't find an appropriate topic so started a new one.

 

I know people won't be able to give me specific advice about pensions, so I'll keep it generic.

 

I have two pensions pots. One from when I worked at JLR, and one from my new company.
My intention was to transfer the pension from my old company into the new one so it's all in one pot... assuming that's possible.

 

So firstly, is that possible? Originally they were both with Zurich, but one has since been bought out by Scottish Widows (with the other one to follow)

Secondly, are their any advantages to keeping them separate? Again I know people won't be able to give me specific financial advice. So I guess I'm asking are there any benefits to having two separate pension pots that I should consider before I make my own decision?

With all the current uncertainty and seemingly endless stream of changes keeping two pensions going might spread the risk ? 

I didn't transfer all my my 20 odd years into the NHS pension - And I am glad I didn't - as the older pension have relaxed the rules so I can take it now (with a penalty) - where as the NHS scheme has racked up the pension age to 67  

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What type of pension is pension 1? 

I've three relatively sizeable (meaning 5-8 years of contributions, rather than the value) "final salary" pensions and have been advised to leave them alone and not combine them.

 

But yes, it is entirely possible to combine pension pots. Always worth getting proper advice though from a pensions advisor.

Edited by choffer
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Assuming they're typical defined contribution pensions - rather than any kind of defined benefit or final/average salary pension - invested and managed through a third party pension provider, as seems to be the case, ultimately it comes down to which one charges the lowest fees. If your current provider has the lowest fees, I'd consolidate them. One other possible consideration is if the selection of funds you're able to select, but there's usually a fairly sizable selection.

They're just a collection of fund holdings in your name. You can't lose it if pension provider goes bust. The exception is when you reach retirement age if you buy an annuity, but these are 100% covered by the FSCS.

If it's being held in cash, you could lose money if the pension provider goes bust, and you're covered for up to 85k per pension provider, but you shouldn't have it in cash, really.

Edited by Davkaus
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it's usually possible but you'd need to look at the transfer value to see if it's worthwhile  .. i.e is the newer fund likely to outperform your JLR one to such an extent you claw back the difference between its value and transfer value

 

 

 

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Thanks all. They're both defined contribution schemes.

They were both with Zurich originally. My new one has already been transferred over to Scottish Widows, and my old one is being transferred at the end of the year. Nothing to do with me, I think Scottish Widows bought Zurich, or this particular part of Zurich.

So I'm assuming fees will be the same.

 

There's not a huge amount in the old pot, relatively speaking. I'd only been paying a pension for a few years.

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Just now, Stevo985 said:

 

So I'm assuming fees will be the same.

 

You'd think so, but it's not always the case. Companies can negotiate reduced fees for the same plans. I wouldn't expect there to be much difference unless you went from working at a huge company with more bargaining power to a much smaller one that just gets the off-the-shelf package.

You should be able to see exactly what fees you were charge din your statements though, so it's definitely worth checking. Even a fraction of a percent can make a noticable difference when you're compounding it over decades.

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