Converting pensions?

[ilovemilton]

I've left the NHS and now have a private pension. Do I continue to keep them separate, or should I do something to combine them?

I have 15 years into the NHS one and just starting a private one.

I have no ideas how pensions work at all.

I'm no expert but I can't see why you would benefit from combining them anyway. Surely tis better to spread your investments?

I honestly have no idea. Would I be taxed more if I had more than one?

You can’t combine them, you won’t pay any more tax.

No point in combing them imo. Better to spread your risk. Do you know which funds your nhs pension is in? Also there is a charge sometimes for transferring out of one pension to another. Furthermore nhs would have negotiated a very good low management charge. Your new private sector one might have a higher charge.

No point in combing them imo.

you can’t combine them.
Better to spread your risk.
one is no risk, it’s government backed Do you know which funds your nhs pension is in?
it’s a defined benefit, it’s not in funds Also there is a charge sometimes for transferring out of one pension to another.
true
Furthermore nhs would have negotiated a very good low management charge.
they pay all the charges
Your new private sector one might have a higher charge.
yep. It’s also a completely different pension

Your NHS pension scheme is probably NOT a Defined Contribution scheme. It is more like a Defined Benefit scheme. If you are in England or Wales then this pdf gives you some information about the main NHS schemes. You need to know which scheme you are in. Also refer to the NHS Pension Member Hub.

You may work for the NHS again at some future point, so you need to factor that in... such as can you add to your existing NHS pension if you are reemployed within the NHS.

Personally I would leave the NHS pension alone until you understand a lot lot more about it. If you decide that transferring it to another scheme might be something to do, consult with an independent financial adviser. Be very careful about messing with a Defined Benefit scheme!

I just felt like it was wrong somehow to have two; not that I particularly wanted to combine them iyswim.

Nothing wrong with having two. I have an old NHS defined benefits pension and a defined contribution pension.

Can you do that with an NHS pension? I’ve got a Police pension which I can’t add to or transfer it’s not allowed so I have a separate private one in addition to the Police one.

I work in public service pensions and would advise against combining them unless you have moved to another public service I.e. Civil Service or local government. If you have then you get preferential terms for transfers.

If not, then I would leave as they are. Your NHS one continue to accrue as it is left

I just felt like it was wrong somehow to have two

Why? Dh has about six!

Just no idea about pensions at all! 

Learn about pensions in general, that would be a starting point.
Podcast series: meaningfulmoney.tv/2018/08/08/what-is-a-pension-pensions-masterclass-1/

NHS pension is very specific, so once you understand generally about pensions then read the information on the NHS Pensions website about your particular pension scheme.

The NHS scheme is a definite benefit final salary scheme. Do not transfer unless you take advice from a pension transfer specialist who are specifically qualified to give advice on DB transfers. Very complex area and will likely tell you to leave it where it is anyway.

Thanks all - it seems pretty unanimous that I don't need to meddle.

(Wanders off to read Idiots' Guide to Pensions...)