Combining pensions
- El Pollo Diablo
- Stummy Beige
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Combining pensions
People who move jobs ever will be faced with the question of whether they should combine their past pensions into one pot. Is it worth doing?
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Re: Combining pensions
[I'm the last person to ask], but one thing I can say is that if you have multiple sources of income, you'll need to keep close track of your tax codes.El Pollo Diablo wrote: ↑Thu May 12, 2022 1:49 pmPeople who move jobs ever will be faced with the question of whether they should combine their past pensions into one pot. Is it worth doing?
The ideal would be to have 1 source - and that would then have the standard L1257 code, that would take the right amount each month. This will avoid you having to possibly find a lump sum to cover underpayments of tax.
On the other hand, multiple pensions means you're avoiding putting all your eggs in one basket. [/I'm the last person to ask]
My avatar was a scientific result that was later found to be 'mistaken' - I rarely claim to be 100% correct
ETA 5/8/20: I've been advised that the result was correct, it was the initial interpretation that needed to be withdrawn
Meta? I'd say so!
ETA 5/8/20: I've been advised that the result was correct, it was the initial interpretation that needed to be withdrawn
Meta? I'd say so!
Re: Combining pensions
Don't think so. Dunno. I've never done it. I've got 6 separate pots.
Instinctively that feels like the multiple egg basket thing and spreading the risk. But you're supposed to fine tune everything because a sliver off the annual fees or a tiny improvement in performance compounds over the years.
However the real reason I've not combined is I haven't been arsed. Investigating it has been on my non-urgent to do list for at least 20 years.
Instinctively that feels like the multiple egg basket thing and spreading the risk. But you're supposed to fine tune everything because a sliver off the annual fees or a tiny improvement in performance compounds over the years.
However the real reason I've not combined is I haven't been arsed. Investigating it has been on my non-urgent to do list for at least 20 years.
Re: Combining pensions
I have three pots. Two via employers and a SIPP via my IFA. Should really combine former employer pot into the SIPP as it's performance is much better.
Given each pot will be a spread of risks anyway, I don't see much benefit of having many pots.
Given each pot will be a spread of risks anyway, I don't see much benefit of having many pots.
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- Clardic Fug
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Re: Combining pensions
I have pensions in 3 or 4 different countries. One of them may be lost because it’s a very special corner case of brexit, but it’s a tiny amount anyway and I haven’t checked yet.
- Little waster
- After Pie
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Re: Combining pensions
The advice I was given was to leave the two tiny pots I have in "final salary pensions" as final salary pensions as they weren't worth transferring and then pool the tiny frozen contribution-based pension pot into my current tiny contribution-based pension pot as with a favourable economic climate* over the next 25 years and compound interest it may be worth up to a tin of cat-food* a week by the time I retire.
Overall the full advice was it was probably best for me to work till I'm 75 and then die two weeks later before the bread turns; the important thing is to have a plan.
*pause for hollow laughter
**I have no intention of getting a cat though, so yum-yum.
Overall the full advice was it was probably best for me to work till I'm 75 and then die two weeks later before the bread turns; the important thing is to have a plan.
*pause for hollow laughter
**I have no intention of getting a cat though, so yum-yum.
This place is not a place of honor, no highly esteemed deed is commemorated here, nothing valued is here.
What is here was dangerous and repulsive to us.
This place is best shunned and left uninhabited.
What is here was dangerous and repulsive to us.
This place is best shunned and left uninhabited.
Re: Combining pensions
I've got 5 years employment worth of Final Salary Pension that I could have taken 10 years ago, but decided to hold out because its value was increasing more as a "deferred pension" than it would have through Index linking.
I've asked for a statement of its value from time to time over the last 4 years and it seemed to be growing nicely (6-7% per year), right up until last year when the pension amount it was offering dropped by almost 10%.
I haven't dared* ask for a valuation since, as I've no idea whether it was a 1 off drop I can look forward to a significant bounce back, or whether it's likely to stay with the loss.
*bothered
I've asked for a statement of its value from time to time over the last 4 years and it seemed to be growing nicely (6-7% per year), right up until last year when the pension amount it was offering dropped by almost 10%.
I haven't dared* ask for a valuation since, as I've no idea whether it was a 1 off drop I can look forward to a significant bounce back, or whether it's likely to stay with the loss.
*bothered
My avatar was a scientific result that was later found to be 'mistaken' - I rarely claim to be 100% correct
ETA 5/8/20: I've been advised that the result was correct, it was the initial interpretation that needed to be withdrawn
Meta? I'd say so!
ETA 5/8/20: I've been advised that the result was correct, it was the initial interpretation that needed to be withdrawn
Meta? I'd say so!