Transferring Pension question

[OrlaM]

My husband worked for Hewlett-Packard for 10 years from 1996 to 2006. He is working for Johnson & Johnson since.

He has a pension from HP managed by Mercer. His current pension manager is also Mercer. Is it a good idea to transfer the pension from Hewlett-Packard into his J&J pension, as an AVC to combine the two and tidy up affairs. He is currently 52 years old.

 

[conor_mc]

Depends on charges but presuming they’re pretty comparable for two such large schemes, then it’s generally better to keep them separate as he’ll have more options about when to retire each scheme.

 

[ClubMan]

combine the two and tidy up affairs

What is the problem with keeping them separate? As @conor_mc mentions, keeping the status quo may give additional flexibility when it comes to accessing retirement benefits. E.g.being able to retire the pensions at separate times rather than it being a one time only all or nothing event.

 

[Persius]

Agree with previous posters that he should keep them separate. Assuming that his HP pension is still in the company's pension scheme, I would recommend moving it to a personal retirement bond (PRB). That gives him a chance to shop around for better rates. More importantly, IMHO, it means that he will no longer be dependent on the pension trustees (e.g. if he wants to draw down the pension money early).

 

[AJAM]

The top priority for your decision is charges only.
Other factors, flexibility etc. should only be considered if the charges are similar.

 

[Fortune]

I would recommend moving it to a personal retirement bond (PRB). That gives him a chance to shop around for better rates.

Not forgetting that the best rates may be those already in the HP scheme

 

[OrlaM]

Many thanks for the replies. Our main motivation was just to tidy up Affairs and streamline things. I am comfortably informed now to leave things as they are.

 

[ClubMan]

I am comfortably informed now to leave things as they are.

That's not exactly what people have suggested...

Depends on charges

The top priority for your decision is charges only.

What are the charging structures on each existing pension?

 

[conor_mc]

What are the charging structures on each existing pension?

Given the scale of the two employers (HP and J&J), I’d well imagine they’re near as competitive as you can get in Ireland.

 

[ClubMan]

I agree - but this should be clarified to be sure just in case there is a reason to switch in order to benefit from lower charges.