Pension advice please

[seany87]

Hi all, I need a bit of advice regarding pensions, as to be truthful, I haven't got a clue.

My background info - I joined the Police in a front line civilian role in summer 2010, I joined the Local government pension scheme through the job later that year.

A year or so later I had decided the Police and the public sector really wasn't for me so always kept my eye out for a job that's closer to my interests. I eventually left the Police in summer this year for the private sector job I am in now. (slightly less pay for slightly more hours but infinately, infinately more enjoyable)

My question is what should I do with the 3.5 years pension I accrued with the Police? Am I better off transfering to another scheme, or leaving it as a seperate pot? I believe all employers must contribute towards a pension starting this year also, so if I transfer it do I need to let my employers know the details so they can start contributing or is it all automatic?

Thanks

[edc]

seany87 said:

Hi all, I need a bit of advice regarding pensions, as to be truthful, I haven't got a clue.

My background info - I joined the Police in a front line civilian role in summer 2010, I joined the Local government pension scheme through the job later that year.

A year or so later I had decided the Police and the public sector really wasn't for me so always kept my eye out for a job that's closer to my interests. I eventually left the Police in summer this year for the private sector job I am in now. (slightly less pay for slightly more hours but infinately, infinately more enjoyable)

My question is what should I do with the 3.5 years pension I accrued with the Police? Am I better off transfering to another scheme, or leaving it as a seperate pot? I believe all employers must contribute towards a pension starting this year also, so if I transfer it do I need to let my employers know the details so they can start contributing or is it all automatic?

Thanks

I don't think anybody here is going to be able to give you any useful information based on the info you have provided. You are probably better off seeing a financial adviser who can at least look at the figures properly.

There are a few things you could consider though. Can you actually transfer out the funds with or without penalty/fee? Is it a final salary scheme? The provider/administrator will have a transfer in or out process. You should speak to them about how it is done. Is there a transfer in charge to your new scheme?

What is it you are actually trying to achieve? Maximising your pension? Consolidating for ease of administration?

[benters]

I don't think there are many of us who are able to afford to save as much as is needed for a personal pension to be worth what your likely to need. Perhaps another angle is to use the difference to add to what mortgage you can afford with a view to down size later. whilst property has its risk, until such times as the supply meets the demand which will be never, then the value is likely to only travel in one direction. . .in my opinion of course

[seany87]

edc said:

I don't think anybody here is going to be able to give you any useful information based on the info you have provided. You are probably better off seeing a financial adviser who can at least look at the figures properly.

There are a few things you could consider though. Can you actually transfer out the funds with or without penalty/fee? Is it a final salary scheme? The provider/administrator will have a transfer in or out process. You should speak to them about how it is done. Is there a transfer in charge to your new scheme?

What is it you are actually trying to achieve? Maximising your pension? Consolidating for ease of administration?

I thought PH was full of financial advisor's? I'm just after an 'if it was me I would...' sort of opinion.

The figures are nothing special at all, it's my first ever pension (I started it when I was 24)
However I can't transfer it out, I can only defer it or transfer to another scheme. It is a final salary scheme. I need to speak to HR for the small company I work for but they are usually out in the field when I find time to try and contact them.

Maximum returns would be what I am aiming for.

benters said:

I don't think there are many of us who are able to afford to save as much as is needed for a personal pension to be worth what your likely to need. Perhaps another angle is to use the difference to add to what mortgage you can afford with a view to down size later. whilst property has its risk, until such times as the supply meets the demand which will be never, then the value is likely to only travel in one direction. . .in my opinion of course

Thanks for the advice but I haven't even got my own house yet, saving for a deposit (and feeling like I am getting nowhere!) Just 10-15k on a scratchcard would do me! (if you are listening, lord)

[edc]

An easy comparison to make would be to get a projected value at retirement as is from the current final salary scheme then go to the website of your new scheme provider, use their calculator and stick the same value into the default fund of your current scheme and see what number it spits out. This is not exactly scientific itself but gives you something to start with.