Pension from previous employer - options?

[pinkie123]

Hi,
I have about 60K in a previous employer's pension - they have written to me and told me I have to transfer it to my current employer's pensions scheme or to a buy out bond.
I'm not sure what to do. Tbh pension hasn't been my first priority as have mortgage etc. but I guess I need to sort this out as I am now 42. I pay into my companys pension and they pay a % also.
Am I right in thinking that transferring this 60K will help my current pension?
Or is a buy out bond the way to go? (I think I can access this when I am 50).

Thanks in advance.

 

[Steven Barrett]

Your options are as they state.

If your transfer to a buy out bond, you can access from 50. If you die before retirement, as a retained benefit, the full amount is paid as a tax free lump sum. You have full choice of where the money is invested.

If you transfer to the employer scheme the charges may be lower as your employer may pay some/all of the fees. If you have less than 2 years service in the scheme and you transfer benefits in, your years service in the previous scheme transfer over too, most likely giving you automatic entitlement to the employer contributions. If you die before retirement, you are entitled to 4 times salary. Anything over that has to be used to purchase an annuity. Fund choice may be restricted under the scheme. If you transfer into your existing scheme, the benefits become part of that scheme and has to be drawn down at the same time.


Steven
www.bluewaterfp.ie