GPP transfer out question..
Discussion
I have GPP (pension) from previous company. No longer contributing to it but the investinents are doing fine at moment ...
I read that I can transfer out to another pension , my current employer has a good pension scheme.
I'm thinking of doing this, does anyone know if it's possible to take up to 25% lump sum & transfer the remainder ?
Also do you have to be 55+ to do this?. I guess at 52 it's not an option..
I read that I can transfer out to another pension , my current employer has a good pension scheme.
I'm thinking of doing this, does anyone know if it's possible to take up to 25% lump sum & transfer the remainder ?
Also do you have to be 55+ to do this?. I guess at 52 it's not an option..
Are there penalty costs for transferring out? If you're 52, you could be in one of those early 90 schemes which are coming under the spotlight for such a thing. Is the new one cheaper/better? You can't take anything until you're 55 but in principle, you can move the pension where you like.
Ginge R said:
If you're 52, you could be in one of those early 90 schemes which are coming under the spotlight for such a thing.
Coincidentally this is exactly the same for me, and I have decided to take the £4K penalty for extra flexibility. If such things are 'coming under the spotlight' does it mean that there might be miselling/compensation issue in the future I wonder? Jimboka said:
Thanks, no mention of costs in the T&Cs, but there are bound to be some ..
Call the provider and ask for a Current Transfer Value and Current Fund Value. If the latter is higher than the former, the difference is essentially the penalty, although it may comprise various fees/penalties/MVR's whatever they choose to call it!You're right yes. My hope was that I could take out the 25% then transfer the rest to my company pension scheme. Unfortunately that's not an option. I can transfer the whole amount though, which I may do as it will increase my company pension at retirement by far more than a pitiful annuity rate... But will seek professional advice!
Simpo,
Possibly it's the same, but don't hold your breath about getting anything changed.
I don't know what your pension fund is worth, but let's assume it is in the order of 100k. If your adviser phoned you up and said 'Simpo, I made a mistake, I've lost you 4% overnight, you'd be hopping mad'. This is what you might be doing if you elect to withdraw your funds - consider too, the lack of compound effect that 4% will have over time.
In essence; to avoid an expensive policy, you're going to possibly pay out even more.. your worry becomes a self fullfilling prophecy. Also, if you do want flexibility (and, I assume, diversity), then putting your eggs into one basket won't always achieve that.
You are probably out of time to make a complaint about the company, but are they keeping you informed, are they keeping their side of the agreement you had? Is/are the fund manager(s) working as advertised, are they keeping to their investment philosophy? If not, start chipping away at them, if you had that policy 20 years ago, the chances are that someone has let things slide and there may be a contractual shortcoming you can turn to.
Finally, is the fund actually doing well? If it is, and if there is no penalty to pay if you last until your specified retirement age, if the ongoing fund costs are now reasoanble (the costs may well have been pre loaded upfront as was more often the case then), then why not keep it as is?
Possibly it's the same, but don't hold your breath about getting anything changed.
I don't know what your pension fund is worth, but let's assume it is in the order of 100k. If your adviser phoned you up and said 'Simpo, I made a mistake, I've lost you 4% overnight, you'd be hopping mad'. This is what you might be doing if you elect to withdraw your funds - consider too, the lack of compound effect that 4% will have over time.
In essence; to avoid an expensive policy, you're going to possibly pay out even more.. your worry becomes a self fullfilling prophecy. Also, if you do want flexibility (and, I assume, diversity), then putting your eggs into one basket won't always achieve that.
You are probably out of time to make a complaint about the company, but are they keeping you informed, are they keeping their side of the agreement you had? Is/are the fund manager(s) working as advertised, are they keeping to their investment philosophy? If not, start chipping away at them, if you had that policy 20 years ago, the chances are that someone has let things slide and there may be a contractual shortcoming you can turn to.
Finally, is the fund actually doing well? If it is, and if there is no penalty to pay if you last until your specified retirement age, if the ongoing fund costs are now reasoanble (the costs may well have been pre loaded upfront as was more often the case then), then why not keep it as is?
Simpo Two said:
Coincidentally this is exactly the same for me, and I have decided to take the £4K penalty for extra flexibility. If such things are 'coming under the spotlight' does it mean that there might be miselling/compensation issue in the future I wonder?
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