pension transfer?

idnkph

Add the title suggests I have about 10k in a pension from a previous employment and I am wondering should I transfer it to my current job pension fund?
If I do will I lose the employer contributions made during that time? Is there any benefit in transferring it? Or will I just leave it and then have it and my current employer pension coming in?
Cheers for any replies

srsly78

You can transfer it but will be charged, might be just easier to let it sit there.

homer911

It can be more convenient to have all your pension in one place. I'd track the performance for a number of months and then make a decision based on the relative performance of your current fund

Losing your employer contributions is usually linked your length of service, not the transfer to another fund. How long were you a member of the old scheme? More than 2 years and you wont lose anything. If you transferred another pension into this fund, then membership of the previous scheme will also count

idnkph

homer911 wrote:

Losing your employer contributions is usually linked your length of service, not the transfer to another fund. How long were you a member of the old scheme? More than 2 years and you wont lose anything. If you transferred another pension into this fund, then membership of the previous scheme will also count

Had 8 years with the old employer. I'm not sure how it's doing. How can I go about finding this out?

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homer911 wrote: »

It can be more convenient to have all your pension in one place.

I would not advise this (and nor would the expensive pension advisor I spoke to a few years ago).

The reasoning is that different funds may perform differently and having all your eggs in one basket is riskier than leaving them in different baskets.

I had an old fund that I would have gotten a small transfer value on had I moved it to my current fund. I declined and a few years later that scheme was closed and they distributed the funds according to its value. I ended up with 4 times what I was expecting because the entire scheme was overfunded. So if I had moved it I would have lost that windfall.

idnkph

So when I come to retiring and if I stay in my current employment, do I then end up getting 3 different pensions?
Would making AVC's or starting another private pension be a better option?

homer911

....... wrote: »

I had an old fund that I would have gotten a small transfer value on had I moved it to my current fund. I declined and a few years later that scheme was closed and they distributed the funds according to its value. I ended up with 4 times what I was expecting because the entire scheme was overfunded. So if I had moved it I would have lost that windfall.

So you were in a DB scheme that was more than fully funded - two situations which are pretty rare these days

pwurple

....... wrote: »

I would not advise this (and nor would the expensive pension advisor I spoke to a few years ago).

The reasoning is that different funds may perform differently and having all your eggs in one basket is riskier than leaving them in different baskets.

I had an old fund that I would have gotten a small transfer value on had I moved it to my current fund. I declined and a few years later that scheme was closed and they distributed the funds according to its value. I ended up with 4 times what I was expecting because the entire scheme was overfunded. So if I had moved it I would have lost that windfall.

That depends on how the pension fund is managed though. OP didn't say if his new fund is self managed or not. I consolidated pensions from multiple employers, because they were all one pension company, all self managed, and all with different management fees. Consolidated into one, and still split the funds as I wanted, but reduced the management cost and fees.

.......

pwurple wrote: »

That depends on how the pension fund is managed though. OP didn't say if his new fund is self managed or not. I consolidated pensions from multiple employers, because they were all one pension company, all self managed, and all with different management fees. Consolidated into one, and still split the funds as I wanted, but reduced the management cost and fees.

Yes Im not suggesting its a hard and fast rule by any means.

But I think the general advice of not keeping all your eggs in one basket is a good one.

I saw people retire in the recession who only had one fund in pretty dire straits and were stuck with it.

BrokenArrows

There is no real benefit to transferring it unless your old provider is a pain to deal with.

If you are happy with the provider then just leave it where it is.

mooreman09

idnkph wrote: »

Add the title suggests I have about 10k in a pension from a previous employment and I am wondering should I transfer it to my current job pension fund?
If I do will I lose the employer contributions made during that time? Is there any benefit in transferring it? Or will I just leave it and then have it and my current employer pension coming in?
Cheers for any replies

I'm in a similar boat - have a small fund from my first job, about 8 years old. I'm leaving it on its own as its performing well (growth of 54% since I left). If I keep it there another 30/35 years until pension I can cash it out along with my current and other funds I accumulate and either buy an Annuity for the combined value or use the combined value to set up and ARF.

Try find out how its performing before you decide.

ANXIOUS

srsly78 wrote: »

You can transfer it but will be charged, might be just easier to let it sit there.

That's incorrect in 99.999%,of cases there is no charge or fee associated with a transfer.

Ace2007

srsly78 wrote: »

You can transfer it but will be charged, might be just easier to let it sit there.

There are no fees in the majority of cases, actually don't think I've ever heard of one.

....... wrote: »

I would not advise this (and nor would the expensive pension advisor I spoke to a few years ago).

The reasoning is that different funds may perform differently and having all your eggs in one basket is riskier than leaving them in different baskets.

I had an old fund that I would have gotten a small transfer value on had I moved it to my current fund. I declined and a few years later that scheme was closed and they distributed the funds according to its value. I ended up with 4 times what I was expecting because the entire scheme was overfunded. So if I had moved it I would have lost that windfall.

The OP is talking about a DC pension fund. You are talking about a DB pension fund. They are completely different, and as such your advice is irrelevant.

Advantage of transferring it:
Pension all in one place - easier to manager, so won't forget about it. New pension scheme may have lower fees. In addition, say you are only in your new job a year and want to leave, if you have transferred in, then you won't lose your employer contributions in the new scheme should you leave like you would if you didn't transfer in (as the service in years comes along with the € amount).

Advantage of leaving it as is:May be more investment funds available in your old scheme.
You could take "early retirement" and access the funds in one fund, while continuing to work and paying into your current pension fund.

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Ace2007 wrote: »

The OP is talking about a DC pension fund. You are talking about a DB pension fund. They are completely different, and as such your advice is irrelevant.

LOL - wind the aul neck in there maybe eh?

My point is not irrelevant, it is better to leave it than move it IMO based on experience and advice.

Ace2007

....... wrote: »

LOL - wind the aul neck in there maybe eh?

My point is not irrelevant, it is better to leave it than move it IMO based on experience and advice.

What advice? You didn’t give any for a DC scheme.

Your example was for a DB scheme - the OP is talking about DC scheme.

Do you know the difference between them?

Henry Ford III

BrokenArrows wrote:

There is no real benefit to transferring it unless your old provider is a pain to deal with.

Control is a huge potential benefit.