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Previous employers Pension - What to do

Including Financial Independence and Retiring Early (FIRE)
Dumbfool
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Previous employers Pension - What to do

#440600

Postby Dumbfool » September 8th, 2021, 1:00 pm

Hi All,

I hope you can help point me in the right direction.

Earlier this year I changed jobs and have a small pension pot in my previous employer's scheme with StandardLife and I am wondering what to do with it. it's just shy of £7k

I believe I could transfer into my current employee scheme (which I believe they want to change for a better one) or open a SIPP. can you please advise on the pro's and cons.


Thx

Alaric
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Re: Previous employers Pension - What to do

#440605

Postby Alaric » September 8th, 2021, 1:14 pm

Dumbfool wrote:H
I believe I could transfer into my current employee scheme (which I believe they want to change for a better one) or open a SIPP. can you please advise on the pro's and cons.


You may want to consider how long you intend or are likely to stay with your new current employer and for that matter future ones. A strategy that may be popular is to set up a SIPP but only use it after you have left employment to transfer out the accrued funds. Unless you happen to get employment in one of the increasingly rare organisations offering defined benefit schemes, you will only ever have two sets of pension arrangements to keep track of.

Dumbfool
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Re: Previous employers Pension - What to do

#440665

Postby Dumbfool » September 8th, 2021, 3:49 pm

Hi Alric,

I have no intention of leaving my current employer as it's a good fit with enhancement opportunities. they also offer 6% contribution + unlimited personal contributions which i currently have at 5%.

what SIPPS are considered the best and why?

pje16
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Re: Previous employers Pension - What to do

#440671

Postby pje16 » September 8th, 2021, 4:02 pm

This reminds me
several years ago there was talk of pension dashboard coming soon
one website where you easily add and see all of your pensions
I can't believe it hasn't happened yet , stiil at least 2 years away :roll:
https://www.pensionsage.com/pa/Pensions ... h-date.php

EthicsGradient
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Re: Previous employers Pension - What to do

#440700

Postby EthicsGradient » September 8th, 2021, 5:24 pm

pje16 wrote:This reminds me
several years ago there was talk of pension dashboard coming soon
one website where you easily add and see all of your pensions
I can't believe it hasn't happened yet , stiil at least 2 years away :roll:
https://www.pensionsage.com/pa/Pensions ... h-date.php

I mistrust any initiative which throws around a phrase like "dashboard ecosystem" as if it has any meaning.

pje16
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Re: Previous employers Pension - What to do

#440702

Postby pje16 » September 8th, 2021, 5:31 pm

I can't help if the author has pi** poor english :lol:

Kantwebefriends
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Re: Previous employers Pension - What to do

#440705

Postby Kantwebefriends » September 8th, 2021, 5:40 pm

Dumbfool wrote:
Earlier this year I changed jobs and have a small pension pot in my previous employer's scheme with StandardLife and I am wondering what to do with it. it's just shy of £7k



I suggest you look carefully at the rules. If they explicitly say you can draw the money from age 55 it might be worth leaving alone. The reason is that if you transfer it it might enter a scheme where the age for drawing money out will be whatever age the government of the day decides.

Our present government plans to increase that age to 57 - you might as well wait to see the details that they eventually pass into law.

kempiejon
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Re: Previous employers Pension - What to do

#440716

Postby kempiejon » September 8th, 2021, 6:05 pm

Dumbfool wrote:Hi All,

I hope you can help point me in the right direction.

Earlier this year I changed jobs and have a small pension pot in my previous employer's scheme with StandardLife and I am wondering what to do with it. it's just shy of £7k

I believe I could transfer into my current employee scheme (which I believe they want to change for a better one) or open a SIPP. can you please advise on the pro's and cons.


Thx


I'd find out how much the legacy pension is costing you, I had an employee pension Friends Provident as was managed it for 0.5% annually, when I was no longer employed FP would keep managing it for me at 1% annually - I switched to a SIPP. A similar thing happened with another employer and another provider this time Legal and General - the fee remained the same before and after my employment at .5% - I've left the money with L&G.

Dumbfool
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Re: Previous employers Pension - What to do

#440814

Postby Dumbfool » September 8th, 2021, 11:08 pm

Thanks Kempiejon,

I will enquire with them regarding the fees.


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