bigsteve Posted December 28, 2006 Report Share Posted December 28, 2006 Sorry about the boring thread for the time of the year, but its something I've not had time to sort out recently! I recently started a new job and have 2 pensions from previous employers, but no have no idea whether I'm better off transferring them or just leave them as seperate pensions. Does anyone on here have any experience of this, or know anyone that might be able to help? Any advice would be greatly appreciated as I've no idea what I'm doing. Cheers :thumbsup: Link to comment Share on other sites More sharing options...
TheSaint Posted December 28, 2006 Report Share Posted December 28, 2006 It depends. Are your two old pensions in a Defined Benefit pension scheme or a Defined Contribution pension scheme? I would bet they're in a Defined Contribution Pension Scheme. If so then the pension contributions you made at the time have been invested. they can be moved into different investment funds as and when you please... As you're young you have the luxury of investing these contributions into high risk areas where you can get good returns but at the moment they're prob not returning you much.... There's a few possibilites for you but you need to tell me more about them.... 1. Are they Defined Contribution or defined benefit 2. Who they are invested with (Norwich Union, Legal + General etc...) 3. What is your new scheme? PM is prob best BTW i used to work as a pensions administrator when i was younger, im not qualified in any way. Link to comment Share on other sites More sharing options...
Chrissie Brown Posted December 28, 2006 Report Share Posted December 28, 2006 An Isa is a good alternative to saving in a pension fund as you can do what you like with it, you also have total control on "your" money unlike a pension fund. There are thousands of people like myself who have paid into a pension fund only to find they have been "robbed" of their savings. I've paid into a private pension for a quite a few years and it is now worth next to nothing due to the company (Pearl) merging with other companies and the big bosses taking a cut. It's scandalous. Link to comment Share on other sites More sharing options...
bigsteve Posted December 28, 2006 Author Report Share Posted December 28, 2006 Cheers Saint, I'll dig all the stuff out and send you a PM 8-) Link to comment Share on other sites More sharing options...
TheSaint Posted December 28, 2006 Report Share Posted December 28, 2006 An Isa is a good alternative to saving in a pension fund as you can do what you like with it, you also have total control on "your" money unlike a pension fund. There are thousands of people like myself who have paid into a pension fund only to find they have been "robbed" of their savings. I've paid into a private pension for a quite a few years and it is now worth next to nothing due to the company (Pearl) merging with other companies and the big bosses taking a cut. It's scandalous. ISA's are limited to 7k a year. You can also withdraw from ISAs at any time (within reason) therefore adding the option of 'dipping in'... I'd recommend a Stakeholder over an ISA Link to comment Share on other sites More sharing options...
Chrissie Brown Posted December 29, 2006 Report Share Posted December 29, 2006 I don't agree as there are hidden annual charges with Pension Funds including Stakeholders. I wouldn't put all my eggs in one basket and would make regular payments into a Mini Cash Isa (3K max a year) as the interest, at around 5%, is tax free and also have a Stakeholder as some employers contribute a percentage of your wages into the fund. Link to comment Share on other sites More sharing options...
Aza Posted December 29, 2006 Report Share Posted December 29, 2006 I know nothing bout pensions and have not even considered one yet. I will more than likely invest my cash in an ISA - there are so many different types eg. wont let you withdraw more than a certain amount/time of year, min/max deposits etc. Either that or invest it in property - kind of gambling on house prices but when the time comes to sell, sell it and live of the proceeds... Link to comment Share on other sites More sharing options...
bigsteve Posted December 29, 2006 Author Report Share Posted December 29, 2006 kind of gambling on house prices but when the time comes to sell, sell it and life of the proceeds... We managed it for a year :wink: Link to comment Share on other sites More sharing options...
TheSaint Posted December 29, 2006 Report Share Posted December 29, 2006 I don't agree as there are hidden annual charges with Pension Funds including Stakeholders.I wouldn't put all my eggs in one basket and would make regular payments into a Mini Cash Isa (3K max a year) as the interest, at around 5%, is tax free and also have a Stakeholder as some employers contribute a percentage of your wages into the fund. with a stakeholder you dont really have your eggs in one basket. If you actively manage the investment of your contributions you can reap the benefits of escalating equities (share prices) and house prices by investing in those markets (through your stakeholder investment manager) Ok, so using two saving vehicles instead of one would allow for company bankruptcies, investment manager bloopers and general misguidance....but it would also double the adminstration for yourself 8-) Link to comment Share on other sites More sharing options...
Quadrant Posted January 1, 2007 Report Share Posted January 1, 2007 Young sirs are misguided if they think pensions are for old people, they need to be sorted as soon as you finish studying and start proper work, because if not, by the time you retire you will live in poverty! The standard government pension is shockingly low so people need to save sensibly. Fortunately my work sorts my pension for me, but I have another savings plan as Chrissie is right, you shouldnt put all your eggs in 1 basket. The system that has been in place with companies is complex. If Joe Bloggs puts away £500 a month into his pension plan, that doesnt mean Joe Bloggs will receive that amount or more when he retires: I think I am right in saying that that £500 gets put in a massive "pool" along with all the other people saving for their pensions at the same time, and that money is dished out live to those who are already pensioners. BUT because young people arent saving today, (theyre all in debt and spending it on PlayStations), when Joe Bloggs finally does retire, there will be no money left in the "pool" to pay him or his fellow pensioners, even though he has loyally paid into the scheme all his life. That's when the pension companies find they're f***ed because there's no money left and they have to pay all these people. Aza and other young sirs should be advised to sort their pension pronto... though I would be grateful if The Saint could verify or slate what I have just said. Just trying to help the sirs on the board! 8-) Link to comment Share on other sites More sharing options...
Briggsy Posted January 1, 2007 Report Share Posted January 1, 2007 If mr Blair has his way, we'll be working longer than the life expectancy age anyway, so I put some into a small pension (and have done since I was 18), and keep enough to enjoy myself now while i'm young. At the end of the day, we could all get hit by a bus tomorrow, so we've gotta enjoy life now too. One of my mates works 6 days a week, 10 hour shifts, and puts it all in the bank for when he's older. Sod that! I work to live, not live to work. Yes, I want to plan for later life, but I don't wanna spoil my lifestyle now by putting too much away. If I die, I can't take it with me.... Link to comment Share on other sites More sharing options...
bigsteve Posted January 2, 2007 Author Report Share Posted January 2, 2007 Quite right Briggsy. Its a balance between now and at least something for the future. With an employer pension, it disappears straight out of your salary, so you never really touch it anyway Link to comment Share on other sites More sharing options...
Chrissie Brown Posted January 2, 2007 Report Share Posted January 2, 2007 Quadders, l think you did a first class job of explaining the pros and cons of paying into a pension fund. :thumbsup: I would just like to add that people have lost their future pensions due to their employer going bust and this is totally unacceptable. The money that's been deducted from your wages doesn't belong to your employer and so it is disgraceful that you could end up with nothing, there should be better protection. That's why l am reluctant to pay into another pension fund. I think l'm right in saying that if a bank/building society went bust you would at least get approx 90% of your savings back. Link to comment Share on other sites More sharing options...
Si_E_P Posted January 4, 2007 Report Share Posted January 4, 2007 my pension is a company pension, having previously worked for a bank i know my fair share about pensions, i checked the t&c of it all and its all good. basically when i retire i will recieve my average salery of work. i got lucky because of the pension scheme i chose when i was 16 which was a good 7 years ago. really not sure of all the ins and outs but it was what i was recomended by family so all should be ok. Link to comment Share on other sites More sharing options...
TheSaint Posted January 4, 2007 Report Share Posted January 4, 2007 my pension is a company pension, having previously worked for a bank i know my fair share about pensions, i checked the t&c of it all and its all good. basically when i retire i will recieve my average salery of work. i got lucky because of the pension scheme i chose when i was 16 which was a good 7 years ago. really not sure of all the ins and outs but it was what i was recomended by family so all should be ok. this is exactly what the others are talking about and also what has been in the papers. Your scheme could easily go bust, i would find out the valuation data of your pension scheme (done every three years) to doubly make sure the pension scheme is in a good state. Just because your T&Cs say you'll get this benefit it doesnt actually mean you will... The money that's been deducted from your wages doesn't belong to your employer and so it is disgraceful that you could end up with nothing, there should be better protection You're quite right and the protection was brought in by a white paper and Pensions Act (2004) recently. Its called the PPF - Pension Protection Fund. If mr Blair has his way, we'll be working longer than the life expectancy age anyway, so I put some into a small pension (and have done since I was 18), and keep enough to enjoy myself now while i'm young. Morelike Mr Gordon Brown! People are living far too long nowadays due to improved NHS and these pension schemes dont like paying out for so long. Gordon Brown certainly doesnt like these aging pensioners Pensions is a complex world and as its not very interesting and doesnt happen till your 60ish you dont really care about it. Even though i know my way round a Benefit Statement it still doesnt mean im saving like a bitch. I put about 7.5% of my salary away per month which isnt gonna buy me a holiday to Ibiza every year when i turn 65 :? Link to comment Share on other sites More sharing options...
Quadrant Posted January 4, 2007 Report Share Posted January 4, 2007 Sorry about the boring thread for the time of the year Link to comment Share on other sites More sharing options...
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