You wish to combine all of your personal pensions into a single pension pot.
The aim of this section is not to advise you but merely to highlight some facts and scenarios for your consideration when thinking about pensions.
A Personal Pension transfer or combination of personal pension transfers into a New personal Pension is called Pension Switching even though there is a transfer involved. A transfer of a Final Salary or company based scheme into a personal pension is called a Pension Transfer.
At any age pre retirement you can combine all of your Personal Pension’s into a singular pension pot. The reason to look at this may be some of your past pensions are in traditional with profits which did once give a return but currently do not and the only way to get out of those funds is to switch product. In one or more pensions the fund may be quite small and this can give a problem at retirement of being too small for the provider to offer an annuity or maybe the current provider doesn’t provide annuities or they are no longer active as an insurance company offering new products. There are many reasons and scenarios in truth. You may have several small pensions with different providers, commonly no idea what fund they are in or in many cases how much is in each and no one advising or looking after them. By streamlining they become more efficient charges wise and the whole process is more calculated for you and easier to follow in an up to date product.
The main sources can be from any of the following
- Personal Pension, or Personal Pensions (PP)
- Previous Company Final salary Scheme that you are no longer contributing into from a former employer and you transfer the fund out.
- Stakeholder Pension Policy (SHP)
- Free Standing Additional Voluntary Contribution (FSAVC)
- Executive Pension Plan (EPP)
- Company Defined Contribution Plan
- Group Pension Policy (GPP)
- Self Invested Personal Pension (SIPP)
- Small Self Administered Scheme (SSAS)
Note: Government Schemes that are Unfunded such as Police, Fire, NHS, Teachers etc are exempt from any transfers as of April 2015 which means that you cannot transfer out even if you wanted to.
In this example we will assume there are three personal pension plans involved to transfer and you simply wish to combine all pension funds into a single plan with a new provider.
The Pensions will have to be transferred into a single new Personal Pension Policy.
Personal Pension A. Current Value £2,500.00.
Personal Pension B. Current Value £9,000.00.
Personal Pension C. Current Value £21,000.00.
Combined values of Pensions A + B + C = £32,500.00
These can all be switched into a single plan and invested in funds suited to your attitude to risk, insurance company fees could be lower as well as reduced plan fees. You can make regular contributions into the plan if you wish. If you are contributing into a work place pension or other company scheme then you need to consider affordability when looking to make additional contributions.
There is an advice process to go through to ensure what is best for you and that you have a full and complete understanding of your current situation and you are able to make an informed decision. Please complete the contact us details and we will be in touch shortly.
What do our customers say about us?
We love our customers and are fully dedicated to keeping their trust by providing them with the best advice to fit their needs.
Dear First Place Financial Ltd
Thank you for your help with my transfer. I have now been able to use the Tax Free Cash to reduce my mortgage which has made me better off each month. Things are looking up.
Having bought my flat from the council a few years ago they decided to re roof the block and whilst it was free to council tenants, those like me who had bought in good faith were sent a bill from the council for our share of the cost. Thanks to your help we were able to get his money by way of Tax Free Cash from one of my old pensions and we were able to settle the council bill without any further borrowing. Now the income pays for a nice holiday each year.
We asked for help regarding our retirement planning. First Place Financial Ltd were able to check every policy that we had and then offer relevant and clearly understandable advice to us about what we can and can’t do and as such we formulated a plan which was best for us. Thank you so much for all of your help.