Consolidate Pension

[kingofthehill]

Hi,

Just started a new job and got a Statement of Options from previous job. Wondering what I should do. Should I leave well enough alone?

Age:37
Salary: 120k
Single, no kids, renting. 40k in savings to buy a house in the next year or so.

1st Pension

• Zurich: Aspire Moderate Growth B (Management Fee 0.57%)

circa 70k

2nd Pension
Irish Life (via Invesco)

• Diversified High Growth Fund S1 (Management Fee 0.31%)
• Indexed Global Equity Fund S1 (Management Fee 0.21%)
• Invesco Gam Global Targeted Return Fund (Management Fee 0.99%)

45k

New Pension
Irish Life
Contributing 10%. Considering going up to 20% but says something about max tax is 115k
Fund Options (Only including risk 4-7):

• Indexed World Equity Fund (0.6%)
• Empower High Growth Fund (0.65%)
• EMPOWER Pension For Life (0.55%)
• Solactive ILIM Sustainable Emerging Market Equity Index (? Can't seem to find fee information but found the following online Entry charge 2.00%, Exit Charge: 3.00%, Switching: 5.00%, Ongoing charge: 0.22%)

 

[DeeKie]

I’m interested in hearing the answers. I’ve a few pensions gathered over the years. I figured that having them gives me some flexibility.

 

[LDFerguson]

Hi,

Just started a new job and got a Statement of Options from previous job. Wondering what I should do. Should I leave well enough alone?

Age:37
Salary: 120k
Single, no kids, renting. 40k in savings to buy a house in the next year or so.

1st Pension

• Zurich: Aspire Moderate Growth B (Management Fee 0.57%)

circa 70k

2nd Pension
Irish Life (via Invesco)

• Diversified High Growth Fund S1 (Management Fee 0.31%)
• Indexed Global Equity Fund S1 (Management Fee 0.21%)
• Invesco Gam Global Targeted Return Fund (Management Fee 0.99%)

45k

New Pension
Irish Life
Contributing 10%. Considering going up to 20% but says something about max tax is 115k
Fund Options (Only including risk 4-7):

• Indexed World Equity Fund (0.6%)
• Empower High Growth Fund (0.65%)
• EMPOWER Pension For Life (0.55%)
• Solactive ILIM Sustainable Emerging Market Equity Index (? Can't seem to find fee information but found the following online Entry charge 2.00%, Exit Charge: 3.00%, Switching: 5.00%, Ongoing charge: 0.22%)

The annual charges on these all look pretty good, which would be an argument in favour of leaving them where they are. I'm guessing that each of the employers had a sizeable workforce and were able to negotiate good charges on the pension scheme through strength in numbers.

A few years ago I wrote a blog piece on the pros and cons of amalgamating pension funds, which might be of interest. It's here.

Considering going up to 20% but says something about max tax is 115k

Yes, the maximum salary for the purposes of tax relief on your own contributions is €115,000. You could go up to 19% of €120,000 which would be less than the ceiling of 20% of €115,000.

Regards,

Liam
www.FergA.com