Company pension to SIPP

[ladymuck]

It was log time ago and frankly I don't know what type it is. I don't even know what the difference is between those two things.
it wasn't big amount of money. I paid 5% company paid 10% into some company pension scheme. Never been bothered to know more.

Defined benefit = pension value based on your final or average salary and length of service

Defined contribution = pension value based on the contributions made and how the investments have performed over time

Huge difference between the two hence why you're being told to find out. It'll be in the paperwork.

[Fred Bloggs]

It was log time ago and frankly I don't know what type it is. I don't even know what the difference is between those two things.
it wasn't big amount of money. I paid 5% company paid 10% into some company pension scheme. Never been bothered to know more.

Fair enough. Nobody can advise you unless you can answer the questions I posed.

Please do a bit of homework and then I and others here can help you.

What you need to know - Was the company pension scheme defined benefit or defined contribution?

Once you can answer that we can help.

[gisp]

Yes, but it depends. First question, defined benefit or defined contribution company pension?

It was log time ago and frankly I don't know what type it is. I don't even know what the difference is between those two things.
it wasn't big amount of money. I paid 5% company paid 10% into some company pension scheme. Never been bothered to know more.

[ladymuck]

Probably had/has a GAR attached to it. If it had/has that, it's still a DC plan but one that you'd be wanting to think very hard about before transferring and losing the GAR which can be very good indeed. Speculation on my part, obviously.

It was years ago now, so far too late to change back. No-one ever said there was anything special going on, just that consolidating pensions was a hassle they didn't want to get involved with. My current IFA didn't have any issues in getting it sorted out, so that's what I did.

[Fred Bloggs]

When I was sorting out my pension stuff no off the shelf product at that time would accept a transfer in from my ex-company pension scheme. Even some IFAs didn't want to touch it and told me it was too difficult to consolidate the old policy into a new scheme. I don't know if its because there was an element of SERPS contracted out but the bulk was defined contribution.

Probably had/has a GAR attached to it. If it had/has that, it's still a DC plan but one that you'd be wanting to think very hard about before transferring and losing the GAR which can be very good indeed. Speculation on my part, obviously.

[ladymuck]

When I was sorting out my pension stuff no off the shelf product at that time would accept a transfer in from my ex-company pension scheme. Even some IFAs didn't want to touch it and told me it was too difficult to consolidate the old policy into a new scheme. I don't know if its because there was an element of SERPS contracted out but the bulk was defined contribution.

[malvolio]

As Fred Bloggs says - not enough information available to provide sane advice.

If it's a defined contribution scheme it usually makes sense to consolidate and keep costs as low as possible.

If it's defined benefit - touching one of those is incredibly dangerous with a lot of downsides.

Agreed, I wrapped all my various pension savings into a single place when I finally retired properly. In the course of that exercise we discovered I had a small defined benefit one from an ex-employee in my permie days. When it matured I was given an option of the lump sum accumulated - about £3800 to go into my general investment pile - or £350 a month for life as per the original agreement. Hmmm, let me think about that for a while...

[eek]

Pick your provider, fill in the transfer form and away you go. Couldn't be simpler.

So simple, if you had typed 'transfer company pension to sipp' in google it would have given you 100's of pages of exactly how to do it.

As Fred Bloggs says - not enough information available to provide sane advice.

If it's a defined contribution scheme it usually makes sense to consolidate and keep costs as low as possible.

If it's defined benefit - touching one of those is incredibly dangerous with a lot of downsides.

[Fred Bloggs]

Pick your provider, fill in the transfer form and away you go. Couldn't be simpler.

So simple, if you had typed 'transfer company pension to sipp' in google it would have given you 100's of pages of exactly how to do it.

That is so not true, I am tempted to ask the mods to remove the post.

OP, read my first reply and answer the question. Then we can go from there.

[northernladuk]

Pick your provider, fill in the transfer form and away you go. Couldn't be simpler.

So simple, if you had typed 'transfer company pension to sipp' in google it would have given you 100's of pages of exactly how to do it.

[zonkkk]

As far as I know personal pensions have the same benefits as SIPPs in terms of tax savings. If you want to have control over what your pension money are invested in a SIPP is better. The other thing to consider of you want to transfer is yearly charges. A lot of workplace pensions have smaller management fees.

[Fred Bloggs]

I have an old pension fund from my pre-contractor post.
It is some company's pension scheme.
Is there a way to move all the funds from this scheme to my SIPP?

Yes, but it depends. First question, defined benefit or defined contribution company pension?

[gisp]

I have an old pension fund from my pre-contractor post.
It is some company's pension scheme.
Is there a way to move all the funds from this scheme to my SIPP?