Out of interest why is a buy out bond with lower fees not on the table, There are advantage of keeping it seperate from present Employer scheme it could be cashed in at a younger age,I know lots of people who left it in original employers fund He/she may be 30 years from retirement but if left where it is or put in a buy out bond it is quite possible the can cash it in possibly in 15 years depending on there age no one asked what age they are at present,Your fund is currently in an Occupational Pension Scheme which is a contract between the pension company (e.g. Irish Life or Standard Life etc.) and the trustee of the pension scheme. The trustee of the pension scheme might be your former employer, it might be individual people or it might be a third-party professional pension trustee company. As long as your fund remains in the scheme, the trustee can make certain choices unilaterally - the trustee can move the scheme to another provider, which would include your fund. The trustee could wind the scheme up, which would result in your fund being transferred out to a PRB anyway. Bear in mind that the trustee has a legal responsibility to act in the best interests of scheme members. So in theory the trustee shouldn't make any decisions unless they are to your benefit. If you want to withdraw money from the scheme (including moving to a PRB of your own choosing, moving to another employer's Occupational Pension Scheme or in the future, retiring) you will need to get the trustee to counter-sign your instructions. So if you decide to leave your fund in the scheme, you'll need to keep track of the whereabouts of the scheme trustee. With 30 years to go, I think I'd be inclined to move it - either into your own PRB or your current employer's pension scheme, if it's better. Charges on the PRB you've been offered do look high.
Regards,
Liam
http://ferga.com
Out of interest why is a buy out bond not on the table, There are advantage of keeping it seperate from present Employer scheme it could be cashed in at a younger age,I know lots of people who left it in original employers fund He/she may be 30 years from retirement but if left where it is or put in a buy out bond it is quite possible the can cash it in possibly in 15 years depending on there age no one asked what age they are at present,
miss type PBRs with lower fees explored more,Once it goes into the employers occupational schemes it is locked to there rules on when it can be taken,It wasn't off the table. He mentioned PRB's
If he was still employer by this company I suspect He would still be happy how the fund is preforming and staying in the pension scheme /fund, Op should have a hand book on the scheme or should be able to get one,Hi whytis,
Just playing the advocate of de devil! Before you pull the trigger on this one, can you explain to me how much you expect to pay in additional fees by moving to your current employer's scheme over the next 30 years and why you believe this is additional cost is justified please? [FWIW, I have reached the opposite conclusion to you!]
Is there any chance employer is paying the financial company for advice if left in existing scheme /fund and they are looking for 1% PRB because they will no longer be getting this money on your pension pot,@RETIRED2017 Lower than what? The financial company has offered a 1% PRB with 98% allocation. Sounds like they're not prepared to go lower.
So here are the figures of my current top options:
1. Keep funds in former employer's scheme, 0.65% annual fee
2. Move funds to current employer's scheme, 1% annual fee
I would have €10,700 less with the second option, after a hypothetical 30 years investment at 5% annual returns.
Is it worth forgoing that potential €10,700, so as not to have funds in an old employer's scheme?
You do have a third option of moving to a PRB of your own choosing with 0.65% annual fee.
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