Consolidating small pensions

lurch3r · 04/08/2020 21:49

I am in the same position except I have more than 2! They are all over the place and I would love to get them all together as I don't have a clue how much they are worth.

milienhaus · 04/08/2020 21:53

You should be able to just contact the old schemes (in writing) and get the appropriate form to transfer your benefits - you will have to check your current scheme will accept the transfers first though. Are they defined benefit or defined contribution? Just because if they are defined benefit but your current one is defined contribution it might be worth keeping them where they are.

NotStayingIn · 15/08/2020 07:39

@Serenity05

I have two old pensions, neither of which are worth much (I paid into them for less than a year before moving jobs), which I'd like to consolidate with my pension from my current employer, which I've been paying into for 6 years (I'm 37). Has anyone done something like this? How did you go about it - did you use a financial service or do it yourself?

I did it myself and it was surprisingly easy. I had five pensions as there was a while where I changed companies quite frequently and joined several work pensions.

First I checked which ones had the highest running fees (it's down somewhere on your paperwork as a percentage.) (that's not the correct terminology) There were two with small amounts in them and high running fees so I chose those to close.

I emailed my current work pension which already had the most in it and has low fees. So I decided to make that my main one. I just emailed them and asked them what to do.

They emailed me a form to fill in, I had to do one for each pension I wanted adding. All the info they asked was on the documents of the pensions involved so very easy.

They then created new paperwork from my info that I had to check and sign.

Then a fair while later (like months!) I got an email about it and when I went online I saw that the fund had increased and the old pensions had been paid in.

As you can tell I am no expert! But it was easy, the pension I wanted the money to go to did everything.

I did have to sign something that asked whether or not I had professional advice. I think messing around with your pensions is generally frowned upon.

I think the main thing is you need to be sure you are not accidentally closing a pension that is actually very good. Mine definitely weren't.

I still have three. But that's because one is my current work one, one is a final salary pension which you don't mess with unless you're an expert (or never I think) and one had low charges, a bit more in it and seemed to be doing increasing fairly well every year.

As a non expert I just killed off the obvious deadwood.

Tatapie · 15/08/2020 07:43

You need a quick scan by someone qualified to give advice as it may be better to leave them. It seems inefficient but may be worth it, they all get consolidated when you retire anyway.

Peteravel · 11/10/2020 09:52

Small pensions don't fare will with fixed fee charges - so that was probably a good decisions.
For larger pensions, check the investment performance, as well as charges. If ABC performs betterthan CBA, you may want to opt for the former.
Your main point is "DO NOT MESS WITH DB PENSIONS". ABSOLUTELY !!! :)
Part of my job is getting compensation for mis-sold victims. I see the visceral side.
Best wishes

BurgerOnTheOrientExpress · 15/10/2020 09:11

@Tatapie

You need a quick scan by someone qualified to give advice as it may be better to leave them. It seems inefficient but may be worth it, they all get consolidated when you retire anyway.

Totally agree with your first statement, however they do not get consolidated when you retire.

Usually you lose a portion when you transfer them from one scheme to another and it's worth bearing that old saying in mind...eggs and basket.

It's impossible to forecast which scheme may be more profitable in 30 years time, it could even be that your 1 year contributions in a 'good' scheme out perform the 6 years in your present scheme.

However there is the benefit of grouping them together now so that you don't lose track of them.

This is an area the UK government should have concentrated on years ago, allowing people to build up a composite fund from many sources to create a pension pot.

Ginandplatonic · 15/10/2020 09:15

I read the title as Consolidating Small Penises.

As you were.

Glamflimfloogety · 15/10/2020 09:19

I've used pension bee to consolidate several historic small pensions. Very good service, there's no fee to move the pensions to them, you select a portfolio based on your preferred level of risk and they charge you an annual %

They don't require a heap of info to start the process, just your name DOB and NI number and of course the name of the company holding the pension currently.

You can't add your current employer pension into it until you leave the job.

BurgerOnTheOrientExpress · 15/10/2020 10:15

@Glamflimfloogety

I've used pension bee to consolidate several historic small pensions. Very good service, there's no fee to move the pensions to them, you select a portfolio based on your preferred level of risk and they charge you an annual %

They don't require a heap of info to start the process, just your name DOB and NI number and of course the name of the company holding the pension currently.

You can't add your current employer pension into it until you leave the job.

Sounds an ideal solution. Are all the benefits outside performance maintained? Mainly that your investment is protected in the event that the holding company runs into financial difficulties.

Glamflimfloogety · 15/10/2020 10:54

@BurgerOnTheOrientExpress

They're regulated and covered by the FSCS

BurgerOnTheOrientExpress · 16/10/2020 04:53

[quote Glamflimfloogety]@BurgerOnTheOrientExpress

They're regulated and covered by the FSCS[/quote]
Brilliant. Thank you. Seal of approval on your recommendation. I hope many users of this forum see your message and consider this route as it appears to be a very sensible solution.