Transfer of a small pension

[LHRFlightman]

Hi.

I've a old company pension that hasn't been paid i to for almost 3 decades now. It's worth about £28k.

My current company pension is worth about that and monthly contributions are around £800 per month, mine and my companies. The pension calculator with this pension tells me.tjat come my nominated retirement date is will be worth about £60k and 'could' pay an annuity of circa £300 per month. Apart from not having two small pensions to keep an eye on, is it worth transferring the dormant pension into my current company pension?

Thanks

Peye

[cml24]

I can't really comment on the financial aspects, apart from I'm trying to do similar so I can manage my three small pensions income place and actually pay attention. I feel like if I pay attention that my have a positive impact.

Prepare yourself though, my three are with the same provided, basically the same product, I've only worked for one company my whole career. Yet they point blank refuse to acknowledge existence of the other schemes, and are making it nearly impossible to combine them.

[fat80b]

LHRFlightman said:

I've a old company pension that hasn't been paid i to for almost 3 decades now. It's worth about £28k.

My current company pension is worth about that and monthly contributions are around £800 per month, mine and my companies. The pension calculator with this pension tells me.tjat come my nominated retirement date is will be worth about £60k and 'could' pay an annuity of circa £300 per month. Apart from not having two small pensions to keep an eye on, is it worth transferring the dormant pension into my current company pension?

Probably need a bit more information to be honest.

I'd be wanting to know which provider the pension is with, which funds you have access to, and crucially, what are the fees associated with the platform and funds that you are in?

With this information, you can then work out if it is better to move it to a different provider. In my case, I had one pension with NEST which was reasonably expensive, and had a poor choice of funds, whereas I have another one with standard life which has very low fees, and a great choice of funds. It made a lot of sense to move the NEST one, and less sense to move the other one.

I have moved the ones I wanted to move to a Vanguard platform which is relatively low cost, and offers enough fund choice for me. Moving was simple enough, you provide the information by filling in an online form and the whole thing was moved in about 8 weeks.

In terms of working out whether the amount / annuity calc is enough, then that's a different question.
Lots of people say you should work out what you think you might need in retirement and work it back from there - A rough number to use is that your total pension pot needs to be ~20x your desired annual expenditure.
i.e. If you want 20K p.a when you retire, then you probably need a pot of ~400K...

[C69]

Is the old pension a defined benefit scheme or a defined contribution one?

[craig1912]

C69 said:

Is the old pension a defined benefit scheme or a defined contribution one?

Appears to be a DC scheme but need more info re charges and funds on both schemes.

[LHRFlightman]

I'll dig the paperwork out tomorrow and report back. Thanks all.