Transfer Value?

[HomersCash]

Hi,

This question may already be asked and answered so apologies in advance.

1. Moved job
2. With old company long enough to keep employers contributions as well as my own.
3. How is the transfer value calculated?
4. Don't have details with me, so unsure what type of pension it is.

i.e. I thought I put in 5%, company puts in 5%, so after say 5 years, = 5 * (5+5) = 50% in "a pot"
But if I move the pot - its a lot less.
a. Why?
b. How is it calulated?

Also - old employer has shut down, and the pension is being wound-up.
I'm getting very unclear information from ex-collegues.
What generally happens?
What choices do you usually have?

Thanks

 

[ClubMan]

i.e. I thought I put in 5%, company puts in 5%, so after say 5 years, = 5 * (5+5) = 50% in "a pot"
But if I move the pot - its a lot less.
a. Why?

As the contributions were made they (less charges) were invested in something - most likely one or more unit linked equity based funds whose values rise and fall according to the value of the underlying assets. You really need to post more specific details about the pension fund in question - e.g. what charges applied, what your money was invested in etc.

What generally happens?
What choices do you usually have?

Probably the transfer to a buy out bond/pension retirement bond or to another occupational pension fund.

 

[GSheehy]

As Clubman says, you are a little bit short on the detail for anyone to give a definitive answer.

It is also possible that you have an 'old' type initial and accumulation unit policy. This would seriously deplete the transfer value as initial costs are called in by the pension company.

If the scheme is being 'wound-up' you should have been given details of what was going to happen and over what period.

Was there any information supplied regarding a pension advisor contact should you require any clarification or was that task left to the employer?