Consolidating defined contribution pensions - typical costs?

[richardracer]

Hello,

A relative is planning to transfer one of her defined contribution pensions to another provider she has another DC pension with.

I am interested in the typical % fees charged for leaving old scheme, joining new scheme and advisor fees please.

Thanks in advance for any feedback.

[ManicMunky]

So she has a pension with current employer and wants to transfer the money from another pension from a previous employer?

I did this exact thing a few years ago, cost me nothing.

[Mazinbrum]

ManicMunky said:

So she has a pension with current employer and wants to transfer the money from another pension from a previous employer?

I did this exact thing a few years ago, cost me nothing.

Sometimes the receiving platform will pay you.

[Edible Roadkill]

Normally they need to review the terms of the one you are transferring & they’ll offer a buy out, normally years service to port it over.

Sometimes it’s not as lucrative as keeping pots separate, at least it wasn’t for me.

[cheesejunkie]

I’m not an ifa but for DC I’d consider whether an IFA is needed and if the new one is a company pension whether they offer a cheap option on financial advice.

Some will work on a percentage of value fee. That was an immediate FO for me. When I spoke to the company CFO, understood the due diligence (to some extent) that he’d done on picking a group pension, and that transferring in a previous DC pension was a no brainier. I’ve kept my small DB one separate.

You don’t need an IFA. They can save you plenty of time. Look at the asking price and get your own quote. In my case a four figure sum for a transfer of a single previous pension into the company they worked for was far too much.

Something I’m not au fait with is the terms on some grandfathered in pensions paying out at 55 vs newer ones meaning you move to later depending on age. Worth considering. I’ll do my diligence on that at some point.