Merging two pensions?

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weston68

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Up to a few years ago I was in a contributory defined benefit scheme. I was then outsourced to a new company and am part of their contributory defined contribution scheme. I left my original pension with the old company. What is the best thing to do with these two two pensions? Merge or leave separate?
 
There's no straight yes/no answer to this question, it depends on the structure your previous and current plans are set up on. If there are no transfer penalties on your previous pension and you are happy with the charging structure and fund choice with the new company then you may well want to move it. For ease of administration it does make life easier to have all your pension funds in the one place.
 
In my opinion ease of administration should be the last reason why you move a pension. End of the day you want the best benefits possible.

You havent given enough information for a straight answer to this question but in general I believe DB pensions to be superior to taking a transfer value once 1) The company can afford long term to pay contributions required to pay people their promised pensions and 2) You believe the company will still be around when you retire (this ties into point 1).

Best thing to do is contact a reputable independent financial advisor and give them all the details. They can give you some guidance on the pro's and con's of leaving it as is or transferring it.



www.CheaperLifeAssurance.ie
 
Apologies I thought they were both DC schemes re reading it I see the first is a DB scheme which as StevieC rightly points out is a different story.
 
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