Old pension from previous employment.

R

robert18

Registered User
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Hello just wondering could I get a bit off info about a pension I have. I was made redundant 4 years ago from a company, I had built up a pension pot over the 16 years I was there. Now a family friend has suggested that I should bond this pension out. He says that it would be better as I would have more control over it. Could someone explain what this means. I am 38 and have just finished a 4 year college course so will probably be working for another 30 years if I am still around. Thanks for any advice.
 
Be careful. 1st check if you have a defined contribution (DC) scheme or a defined benefit scheme. (DB). A lot of DB schemes are underfunded. DC schemes are more generally performing or holding their own.

Check your pension scheme and its admin. If its a well run DB scheme thats well funded with a strong company it may be worthwhile leaving it where it is but keep and eye on it over time.

If its a DC scheme, transferring it out should only be considered if you feel the product you transfer out to is a better (lower cost and higher chance of stronger future performance) option.

But if you can provide more detail on whether its a DB or DC scheme other posters here may be able to give more expansive advice
 
What he means is that you can transfer the value of your benefits into a policy in your own name. You can pick the provider and the funds that suit you.

If you leave it where it is, it stays under the control of the trustees of the old company. There may be no fund choice or a limited one.

Either way, the money is yours and stays invested at all times.

You want to make sure that you aren't penalised for transferring the policy out. Based on what you said, there probably are no penalties but do double check what The Fat Man said and see if it's a defined benefit scheme or not. If it is, a bit more work would have to be done before deciding whether to leave it there or not (like will a company that let people go 4 years ago still be providing guaranteed pensions in 27 years time?)

Steven
www.bluewaterfp.ie
 
Pension

Lads thanks for the replies will send for a report on my pension and let ye know what it says as I said thanks for taking the time to reply.
 
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