Combine New Pension with Existing ...or ...?

T

tom_tom

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OH starting a new job which provides a pension with Irish Life ...previous employment also had a Irish life pension ...in the past OH always rolled one pension into the other to create a pot which is now worth 300K approx.
I read or rather i heard on a podcast that not combining them created some advantage ..but cannot remember the details.....what are the considerations here if OH keeps this NEW one separate from the previous one?

OH is early 40s , private sector PAYE employment.
 
If you combine the pensions you will be subject to the rules of the new pension.

If this pension states that you cannot take benefits until a certain age e.g. 60, you will be limited to those terms.

If you don't combine and your previous pension allows earlier retirement, you could for instance, take the benefits from that pension at an earlier age e.g. 55.
 
S class said:
If you combine the pensions you will be subject to the rules of the new pension.

If this pension states that you cannot take benefits until a certain age e.g. 60, you will be limited to those terms.

If you don't combine and your previous pension allows earlier retirement, you could for instance, take the benefits from that pension at an earlier age e.g. 55.
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Thanks..thats jogged my memory some.what...the gist of the podcast was around having more options ...if I've build a pension pot with company A and leave to join company B and start a seperate new pension ..assuming I've kept them separate at 51 I can access pension A whilst working for company B ..better to let it run BUT that maybe a useful option.

I assume you have two pensions running in parallel with same provider (ie Irish Life)?
 
Hello,

A couple of further considerations, if I may...

Having joined a new employer, and been invited to join their pension scheme, what rules apply in the event that you leave that employment (there are often clawbacks of employer contributions, if you leave the employer within the first 2 years, for example, but this rule is sometimes waived, if you transfer a former pension into the new employer's scheme)?

How do the fees for the previous pensions compare to those for the new employers scheme ?

Are the range of investment options the same, or at least similar, between the previous pension scheme, and the new employers scheme ?

Are you exposed to any costs, or restrictions, if you transfer out of your old fund (I seem to recall that there are some funds applying restrictions on exiting property related investments, for example, but can't recall specific details) ?
 
LDFerguson said:
I wrote a blog piece on this a few years back, setting out the pros and cons of amalgamating pension funds. It's here.
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Thanks ..the phased retirement you mention fits in with what I was thinking around having options ...does revenue alow you retire more than once :) ? ..meaning is the tax treatment on exit a one time deal ... or any advantage tax wise to having muikple pots ?

*Giving people options is both a good and bad thing as any early encashment would want to be very considered .....but I myself may stay with the same company throughout my career and therefore one of us having the option is useful
 
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