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Pension advice

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  • 04-11-2014 10:07am
    #1
    Murph1987
    Registered Users Posts: 21 ✭


    I currently have two pension's and really don't know if I need both of them.
    One is with my bank (BoI) and the other is with my new job that I just started (Irish Life).
    I'm paying roughly the same into each a month but my one with work is based on 3% of my wage and then the company matches the 3% which is good.
    I've been told you can consolidate pensions but don't have the first clue as how to go about doing that so any and all advice is welcome.
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    #2
    coylemj
    Registered Users Posts: 25,419 ✭✭✭✭coylemj


    If your current employer has an AVC scheme or if you are allowed contribute more than 3% (with or without a matching contribution from the employer) then I would immediately divert the money currently going into the BoI pension into your employer's main scheme or AVC because that way you will get the tax benefit immediately rather than have to claim it after the event as you're having to do now.

    As to the money that's already in the BoI scheme, your employer may or may not allow you to move that money into their DC scheme, ask the pension people at work if they will allow that. If the BoI scheme is only a few years on the go, there may be 'administrative' charges for moving it out early - the salesman who signed you up got commission which has to be covered, hence early exit penalties. So it may make sense to leave the money there until at least five years have elapsed since you started that scheme.


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    #3
    Nickindublin
    Registered Users Posts: 620 ✭✭✭Nickindublin


    I had the same issue a few years ago. Had my own pension with PTSB and one with employer. Employer changed the way they contributed. I stopped paying into PTSB one and put everything into employers pension fund. 2 reasons I did so was if I payed in 5% employer would contribute 10% and the second reason was that PTSB was taking 5% commission while employer pension had no charges. I left my PTSB pension alone for about 3 years before I transferred it all into employers pension fund. So my advice is look at the charges and benefits of both pension funds.


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