Pensions - Keep seperate?
Discussion
Hi All,
I currently have 3 pensions from various employers over the years:
The first is with Standard life from a job i had between 2005 and 2010 and despite all the trouble with the markets this year has gone up in value by £400. I recently re-discovered this pension when i found a statement in my garage and this was the first time I had looked into it since leaving and found its value had doubled since 2010 so I would say this is performing brilliantly.
The second is with Aegon from a job i had from 2017 to 2019 and has lost £100 in value this year. It's not got a huge sum of money in the pot but the performance is underwhelming. I also seem to be on a default investment product with no risk score on my profile (auto enrolment, i have done nothing to manage this). The pot is actually only £1000 lower than the Standard Life pot had when I left that employer in 2010.
The final one is a "peoples pension" with my current employer. I am not planning on doing anything with this one at this time and again, it is an auto enrolment product.
Is it possible, and indeed wise, to move the funds from my Aegon pension to my Standard life pension? Would there be any penalties/tax implications?
Many thanks in advance for any and all advice
I currently have 3 pensions from various employers over the years:
The first is with Standard life from a job i had between 2005 and 2010 and despite all the trouble with the markets this year has gone up in value by £400. I recently re-discovered this pension when i found a statement in my garage and this was the first time I had looked into it since leaving and found its value had doubled since 2010 so I would say this is performing brilliantly.
The second is with Aegon from a job i had from 2017 to 2019 and has lost £100 in value this year. It's not got a huge sum of money in the pot but the performance is underwhelming. I also seem to be on a default investment product with no risk score on my profile (auto enrolment, i have done nothing to manage this). The pot is actually only £1000 lower than the Standard Life pot had when I left that employer in 2010.
The final one is a "peoples pension" with my current employer. I am not planning on doing anything with this one at this time and again, it is an auto enrolment product.
Is it possible, and indeed wise, to move the funds from my Aegon pension to my Standard life pension? Would there be any penalties/tax implications?
Many thanks in advance for any and all advice
Check, but it may well not be possible to move money into a pension fund where you're a deferred member.
With regard to doubling in a decade, that's about 7% a year compounded, which is reasonable, but hardly eye opening performance.
If you want to combine the two deferred schemes, you may want to look at transferring them both into a SIPP of some sort, or investigate if you can transfer them into your current scheme?
With regard to doubling in a decade, that's about 7% a year compounded, which is reasonable, but hardly eye opening performance.
If you want to combine the two deferred schemes, you may want to look at transferring them both into a SIPP of some sort, or investigate if you can transfer them into your current scheme?
DoubleSix said:
Pensions advice is a complex area (not to mention regulated!).
You aren’t going to gain meaningful analysis and insights from a motoring forum, and certainly not at a policy specific level.
Why no insights? You aren’t going to gain meaningful analysis and insights from a motoring forum, and certainly not at a policy specific level.
Strange comment to make, unless you are suggesting he must pay for the services of an IFA to formulate any possible thoughts on the matter
This is a finance sub-forum, lest it passed you by - plenty of useful fiscal hints and tips here.
As there are over on MSE retirement boards here , in case I am accused of any favouritism!!
Is it worthwhile consolidating?
Maybe.
Usually a current 'live' scheme is worth keeping going - employers generally add into it (ours match up to 6%), and that is 'free' money!
I've brought 3 schemes into my main work one, on the basis my work one is low-cost and performing well, with a decent choice of funds that I take an interest in selecting.
If you mean "are you safer holding them separately", I would say no, not really - the schemes are just 'buckets' - where they invest is the important thing, and that is where you can perhaps do some research yourself to see if they look decent enough.
If you pay more attention to one (perhaps your current one) and it performs reasonably well for you, then I would certainly look into moving them to it. Easier to manage and track over the years.
If they are all DC schemes, which I think they are from the way you worded things, then moving them should be very simple and should not cost you anything to do, particularly with large providers that use something called "Origo options" - [url broad list here | https://www.origo.com/services/OrigoTransferServic... [/url] - Aegon and Standard Life are certainly there.
IF they are DB schemes, have guaranteed minimum payments, then you need to investigate further.
xeny said:
Check, but it may well not be possible to move money into a pension fund where you're a deferred member.
With regard to doubling in a decade, that's about 7% a year compounded, which is reasonable, but hardly eye opening performance.
If you want to combine the two deferred schemes, you may want to look at transferring them both into a SIPP of some sort, or investigate if you can transfer them into your current scheme?
I'd agree with this - but 7% annual growth is not to be sniffed at. This year (to date!) will skew things, and (hopefully!) be an exception, so be wary of placing too much on that.With regard to doubling in a decade, that's about 7% a year compounded, which is reasonable, but hardly eye opening performance.
If you want to combine the two deferred schemes, you may want to look at transferring them both into a SIPP of some sort, or investigate if you can transfer them into your current scheme?
You could certainly ping the question to the MSE boards for alternative views - a couple of decent IFAs respond a fair bit on there.
Or you could slip a question into the IM sticky thread at the top of this sub-forum - Nik would probably give you some decent no-cost guidance. In your shoes, I would consider moving them to an IM pension fund....our family have a number of things open with them (ISA pensions), so there's my interest declared, I'm a happy customer!
Thanks for the responses so far.
Xeny and Mikeiow, I will consider those ideas, thanks for the advise.
Doublesix, I understand it is a can of worms and I am certainly weary of crossing the line and asking too much of the forum, however i have often been impressed with the advise of the finance sub forum that I would put value in what i read here. I am ashamed to say i really haven't put much thought or consideration into pensions over the years and i am now of the age where i need to start being more aware of what all this stuff means so this isn't so much about detailed pension investment tips, more a simple, "this is what I have, should i be doing it differently" type of topic.
Xeny and Mikeiow, I will consider those ideas, thanks for the advise.
Doublesix, I understand it is a can of worms and I am certainly weary of crossing the line and asking too much of the forum, however i have often been impressed with the advise of the finance sub forum that I would put value in what i read here. I am ashamed to say i really haven't put much thought or consideration into pensions over the years and i am now of the age where i need to start being more aware of what all this stuff means so this isn't so much about detailed pension investment tips, more a simple, "this is what I have, should i be doing it differently" type of topic.
mikeiow said:
DoubleSix said:
Pensions advice is a complex area (not to mention regulated!).
You aren’t going to gain meaningful analysis and insights from a motoring forum, and certainly not at a policy specific level.
Why no insights? You aren’t going to gain meaningful analysis and insights from a motoring forum, and certainly not at a policy specific level.
Strange comment to make, unless you are suggesting he must pay for the services of an IFA to formulate any possible thoughts on the matter
This is a finance sub-forum, lest it passed you by - plenty of useful fiscal hints and tips here.
As there are over on MSE retirement boards here , in case I am accused of any favouritism!!
Is it worthwhile consolidating?
Maybe.
Usually a current 'live' scheme is worth keeping going - employers generally add into it (ours match up to 6%), and that is 'free' money!
I've brought 3 schemes into my main work one, on the basis my work one is low-cost and performing well, with a decent choice of funds that I take an interest in selecting.
If you mean "are you safer holding them separately", I would say no, not really - the schemes are just 'buckets' - where they invest is the important thing, and that is where you can perhaps do some research yourself to see if they look decent enough.
If you pay more attention to one (perhaps your current one) and it performs reasonably well for you, then I would certainly look into moving them to it. Easier to manage and track over the years.
If they are all DC schemes, which I think they are from the way you worded things, then moving them should be very simple and should not cost you anything to do, particularly with large providers that use something called "Origo options" - [url broad list here | https://www.origo.com/services/OrigoTransferServic... [/url] - Aegon and Standard Life are certainly there.
IF they are DB schemes, have guaranteed minimum payments, then you need to investigate further.
xeny said:
Check, but it may well not be possible to move money into a pension fund where you're a deferred member.
With regard to doubling in a decade, that's about 7% a year compounded, which is reasonable, but hardly eye opening performance.
If you want to combine the two deferred schemes, you may want to look at transferring them both into a SIPP of some sort, or investigate if you can transfer them into your current scheme?
I'd agree with this - but 7% annual growth is not to be sniffed at. This year (to date!) will skew things, and (hopefully!) be an exception, so be wary of placing too much on that.With regard to doubling in a decade, that's about 7% a year compounded, which is reasonable, but hardly eye opening performance.
If you want to combine the two deferred schemes, you may want to look at transferring them both into a SIPP of some sort, or investigate if you can transfer them into your current scheme?
You could certainly ping the question to the MSE boards for alternative views - a couple of decent IFAs respond a fair bit on there.
Or you could slip a question into the IM sticky thread at the top of this sub-forum - Nik would probably give you some decent no-cost guidance. In your shoes, I would consider moving them to an IM pension fund....our family have a number of things open with them (ISA pensions), so there's my interest declared, I'm a happy customer!
OP, be wary of the opinions of those with no expertise on the matter. You’re not crossing any lines in asking the question you have, but you should be aware that the answers here may well...
Good luck with it all.
Edited by DoubleSix on Thursday 18th June 20:31
DoubleSix said:
OP, be wary of the opinions of those with no expertise on the matter. You’re not crossing any lines in asking the question you have, but you should be aware that the answers here may well...
Now would be a good time to put any credentials on the table, so readers can decide how much weight to attach.Simpo Two said:
DoubleSix said:
OP, be wary of the opinions of those with no expertise on the matter. You’re not crossing any lines in asking the question you have, but you should be aware that the answers here may well...
Now would be a good time to put any credentials on the table, so readers can decide how much weight to attach.DoubleSix said:
Simpo Two said:
DoubleSix said:
OP, be wary of the opinions of those with no expertise on the matter. You’re not crossing any lines in asking the question you have, but you should be aware that the answers here may well...
Now would be a good time to put any credentials on the table, so readers can decide how much weight to attach.When I was a professional photographer I told people what I was and what I did and had my web address in my profile. You seem to prefer smoke and mirrors. If you have quality information to impart, then come out of the woods and impart it. If not, stop being sniffy and patronising towards everybody here.
What rot.
I'm doing the OP a service in suggesting he be very wary of generic "guidance" or worse, forum opinions from laypersons where his pensions are concerned.
In your former life as a photographer no doubt you came across skilled practitioners, and those others who had bought an SLR where a point and shoot would have served them better... the consequence of the latter dishing out "advice" might be a blurry photo, with pensions the consequences are somewhat more meaningful, which is why photography isn't regulated last I checked.
I'm doing the OP a service in suggesting he be very wary of generic "guidance" or worse, forum opinions from laypersons where his pensions are concerned.
In your former life as a photographer no doubt you came across skilled practitioners, and those others who had bought an SLR where a point and shoot would have served them better... the consequence of the latter dishing out "advice" might be a blurry photo, with pensions the consequences are somewhat more meaningful, which is why photography isn't regulated last I checked.
Edited by DoubleSix on Thursday 18th June 21:28
DoubleSix said:
Simpo Two said:
DoubleSix said:
OP, be wary of the opinions of those with no expertise on the matter. You’re not crossing any lines in asking the question you have, but you should be aware that the answers here may well...
Now would be a good time to put any credentials on the table, so readers can decide how much weight to attach.'bought an ISA and litter the forums with half-cocked opinions and "insights"..'
Seriously?
It must be a real pleasure for your customers dealing with you, with your joyous nature and friendly manner
Feel free to provide the OP some "meaningful analysis and insights" - unless you only pop in here to berate foolish forum people for daring to think they could get some useful information from strangers on the internet: how dare they!!
As to the "no expertise on the matter" - you have no idea how much expertise I have (nor does the OP, of course)......just as I have no idea how much you charge to manage funds for people.
Ransoman said:
Thanks for the responses so far.
Xeny and Mikeiow, I will consider those ideas, thanks for the advise.
Doublesix, I understand it is a can of worms and I am certainly weary of crossing the line and asking too much of the forum, however i have often been impressed with the advise of the finance sub forum that I would put value in what i read here. I am ashamed to say i really haven't put much thought or consideration into pensions over the years and i am now of the age where i need to start being more aware of what all this stuff means so this isn't so much about detailed pension investment tips, more a simple, "this is what I have, should i be doing it differently" type of topic.
Be aware we are not offering advice....just giving experienced hints & tips, or guidance. Advice can only be gleaned from advisors - such as DoubleSix - who will of course charge fees to share their knowledge. Unless they feel like giving free guidance here in a public forum!Xeny and Mikeiow, I will consider those ideas, thanks for the advise.
Doublesix, I understand it is a can of worms and I am certainly weary of crossing the line and asking too much of the forum, however i have often been impressed with the advise of the finance sub forum that I would put value in what i read here. I am ashamed to say i really haven't put much thought or consideration into pensions over the years and i am now of the age where i need to start being more aware of what all this stuff means so this isn't so much about detailed pension investment tips, more a simple, "this is what I have, should i be doing it differently" type of topic.
I would suggest you can find LOTS out yourself before needing that sort of help. If you need it at all
Edited by mikeiow on Thursday 18th June 21:38
DoubleSix said:
What rot.
I'm doing the OP a service in suggesting he be very wary of generic "guidance" or worse, forum opinions from laypersons where his pensions are concerned.
In your former life as photographer no doubt you came across skilled practitioners, and those others who had bought an SLR where a point and shoot would have served them better... the consequence of the latter dishing out "advice" might be a blurry photo, with pensions the consequences are somewhat more meaningful.
It is true, people would well-meaningly offer advice that wasn't quite right, but I was able to add my own response, and in a way that gained respect and also a good deal of work. I never belittled anyone or said 'You aren’t going to gain meaningful analysis and insights from a motoring forum'. In every subject we are on a ladder. There are people above you and people below you. Learn from those above, and try to assist those coming up.I'm doing the OP a service in suggesting he be very wary of generic "guidance" or worse, forum opinions from laypersons where his pensions are concerned.
In your former life as photographer no doubt you came across skilled practitioners, and those others who had bought an SLR where a point and shoot would have served them better... the consequence of the latter dishing out "advice" might be a blurry photo, with pensions the consequences are somewhat more meaningful.
Telling someone to ignore replies, but without adding anything, is singularly unhelpful. If you feel the OP should talk to an IFA, which I suspect you do, and indeed is sometimes necessary where pensions are concerned, then it would seem more constructive to say what you are, what your qualifications are and why he should hire you, what it will cost him and why you will make him richer.
I just move my various DC pensions into my current one as the fee seems low, 0.23%. The last transfer I did didn’t have any fees.
I can’t tell the difference between one set of funds and another, if there really is any difference but it makes organising it and remembering logins etc easier.
I can’t tell the difference between one set of funds and another, if there really is any difference but it makes organising it and remembering logins etc easier.
Simpo Two said:
DoubleSix said:
What rot.
I'm doing the OP a service in suggesting he be very wary of generic "guidance" or worse, forum opinions from laypersons where his pensions are concerned.
In your former life as photographer no doubt you came across skilled practitioners, and those others who had bought an SLR where a point and shoot would have served them better... the consequence of the latter dishing out "advice" might be a blurry photo, with pensions the consequences are somewhat more meaningful.
It is true, people would well-meaningly offer advice that wasn't quite right, but I was able to add my own response, and in a way that gained respect and also a good deal of work. I never belittled anyone or said 'You aren’t going to gain meaningful analysis and insights from a motoring forum'. In every subject we are on a ladder. There are people above you and people below you. Learn from those above, and try to assist those coming up.I'm doing the OP a service in suggesting he be very wary of generic "guidance" or worse, forum opinions from laypersons where his pensions are concerned.
In your former life as photographer no doubt you came across skilled practitioners, and those others who had bought an SLR where a point and shoot would have served them better... the consequence of the latter dishing out "advice" might be a blurry photo, with pensions the consequences are somewhat more meaningful.
Telling someone to ignore replies, but without adding anything, is singularly unhelpful. If you feel the OP should talk to an IFA, which I suspect you do, and indeed is sometimes necessary where pensions are concerned, then it would seem more constructive to say what you are, what your qualifications are and why he should hire you, what it will cost him and why you will make him richer.
I do occasionally comment and I do agree these boards serve a useful purpose for general financial chat and discussion. But when someone is asking for specifics and clearly coming from a position of limited understanding of a complex subject I feel people are at risk of doing more harm than good with their "opinions" - again, pensions advice is regulated for a reason.
You have a point about perhaps offering the OP a little more in the way of assistance and I would only suggest he get in touch with TPAS in the first instance and take it from there... https://www.pensionsadvisoryservice.org.uk/
DoubleSix said:
errrrmm.... I'm not sure you've understood my position entirely; I don't use these boards to tout for business and never will. My business interests are entirely separate and will remain so.
I do occasionally comment and I do agree these boards serve a useful purpose for general financial chat and discussion. But when someone is asking for specifics and clearly coming from a position of limited understanding of a complex subject I feel people are at risk of doing more harm than good with their "opinions" - again, pensions advice is regulated for a reason.
You have a point about perhaps offering the OP a little more in the way of assistance and I would only suggest he get in touch with TPAS in the first instance and take it from there... https://www.pensionsadvisoryservice.org.uk/
Maybe if you're proud of the finance work you do, you could add your contact/company details on your profile page, instead of just telling people you are a "whizz-kid"?I do occasionally comment and I do agree these boards serve a useful purpose for general financial chat and discussion. But when someone is asking for specifics and clearly coming from a position of limited understanding of a complex subject I feel people are at risk of doing more harm than good with their "opinions" - again, pensions advice is regulated for a reason.
You have a point about perhaps offering the OP a little more in the way of assistance and I would only suggest he get in touch with TPAS in the first instance and take it from there... https://www.pensionsadvisoryservice.org.uk/
DoubleSix said:
I'm pretty sure the more attentive readers of these pages know who does this for a living and who has bought an ISA and litter the forums with half-cocked opinions and "insights"...
& maybe you'd like to explain what you mean by this?Moving them into a single pot would be easier to manage.
From there you can try and find appropriate funds.
7pc annually in a Bull market isn't setting the world alight...
I'm in the process of collating all my wife's from various roles and putting them in a SIPP. This may not be appropriate for you, so not advice, but merely an example of what can be done.
From there you can try and find appropriate funds.
7pc annually in a Bull market isn't setting the world alight...
I'm in the process of collating all my wife's from various roles and putting them in a SIPP. This may not be appropriate for you, so not advice, but merely an example of what can be done.
Jasey_ said:
Piss poor performing pensions should almost certainly be moved to better ones.
Actually getting this done is a minefield and as mentioned you'll almost certainly need the regulated advice mentioned previously.
I was in a similar position approx 10 years ago and moved everything into one - But you didn't need an IFA to look after your own decisions back then.
Respectfully, the performance of pensions is not singularly affected by the tax wrapper itself. That is to say, if the investments within the pension are performing poorly, transferring the pension is not the automatic solution. There are significant risks in lurching to this conclusion. Actually getting this done is a minefield and as mentioned you'll almost certainly need the regulated advice mentioned previously.
I was in a similar position approx 10 years ago and moved everything into one - But you didn't need an IFA to look after your own decisions back then
.Transferring pensions based on investment performance is to misunderstand the fundamentals of the situation. If you consolidated a number of pensions without considering the many other features of the specific pensions in question then this can seriously impact one's retirement prospects.
The blunders I have seen where people have unwittingly transferred away from pensions that offered benefits you would give your right arm for in the current landscape would make you shudder. Guaranteed minimums, death benefits, etc.
When you ask them why?, it's usually the same responses; "it wasn't doing well", "I just wanted them in one place", "someone on this forum I read said it would be a good idea"
Edited by DoubleSix on Thursday 18th June 23:18
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