Pension(DC) Transfer Query - new job

[MFK]

I am 41yrs and have a Defined Benefit pension from Job No. 1 which had 12 years subscriptions and pension is just sitting there. I have a Defined Contribution pension from Job No. 2 which has €115K funds in it (6 years subscriptions). I am leaving this job and joining Job No. 3 (as a Director - only say that as I see some references to it in other threads so not sure if that makes any difference). Job 3 is a defined contribution pension scheme. My query is what should I do with pensions?

1. Should I transfer Job 2 pension into Job 3 scheme and see if I can get a top up from new provider for the additional funds
2. Should I leave Job 2 pension sitting there and just start fresh with Job 3
3. Should I transfer pension 2 into a personal retirement bond
4. Any other options to consider.

I'd appreciate any help or guidance as pensions are not an area I am familiar with.

Thanks

 

[Conan]

Based on the information outlined I would suggest:
- look at consolidating Pension 2 into new arrangement, subject to the annual management charge under your new scheme being no more expensive and that you get an allocation rate of at least 100%. The advantage is that you have more control and can adopt a single investment strategy.
- a retirement bond could give a similar result (and perhaps allow a more diversified investment strategy) but charging structure needs to be examined
- deciding what to do with your DB benefit is much more complicated. You could just leave it as is (assuming the scheme is well funded). But you could also look at opting for a Transfer Value into your new pension scheme. But that would very much depend on whether the DB scheme will offer a full transfer, what that transfer value amounts to and whether the transfer value will likely provide similar benefits by retirement. It would be a much more complicated decision process, one requiring expert advice.

Hope this is of some help.

 

[MFK]

Conan, many thanks for the reply. I intend leaving the DB pension as is for the moment anyway. In relation to the DC from pension 2 when you say "allocation of at least 100%" do you mean the full €115K is transferred or more (which is what I am calling a "top up"). Some people told me that I may be able to get 2% approx top up - is that likely?

I will certainly look into the charges

Many thanks for the advice