Moving pension

The Waxbill

Hi all,

I have a pension in a former employer and the company has since wound up. Would I be better to move this fund into a personal pension or is it ok to leave it where it is. I still have access to it to see how it is performing but obviously I am no longer contributing to it. I have a new pension scheme with my current employer to which I am maxing out my contributions through AVC's.

Is there any reason or advantage why I should move this fund into a personal pension?

thomasm

It would need someone to review the pension and give an honest assessment. You have a number of options and making sure its performing relative to its cost is important. To be sure you are getting an impartial opinion find a Certified Financial Planner. There is a list here

https://www.sfpi.ie/locate-a-financial-planner/#!directory/map/ord=rnd

Henry Ford III

You can get appropriate advise from any QFA.

When you left service of the former employer (defined contribution scheme?) you should have received leaving service option papers. These would have outlined what you could do with your pension pot.

If the pension scheme was 'wound up' you would have been forced out of it to a Personal Retirement Bond (PRB) or transfer to another pension scheme (or maybe PRSA). The old scheme employer/trustees would sign off on the transfer and you'd have no dealings with them again.

If the fund management charges were lower on a PRB (or in your new scheme) whilst being careful of entry/exit charges, you might move it. Defined contribution pension scheme charging structures (low annual management charges) can be very competitive but sometimes the fund selection isn't great.

Sometimes people think it's a good idea to consolidate pension pots (either by own decision or paid for advice) but, if you have multiple pots of pension money you can draw them down or mature them at different times.