Different Pension

[creggan14]

I have a pension plan from a few years ago with a previous employer. It's a Scottish Widows Pension and I was wondering if I could combine the two pensions to make one big pension, or would I be better off keeping them separated?

Seems daft having two (taxed twice when they pay out?), but I could also see the point of having them separate too (split any deflation in their values).

Would any pension savvy posters be able to advise me one way or t'other?

Much appreciated.

[5plusbonusball]

Basically make it 'paid up' transfer it to the rm one and if you survive til retirement age , you get the one big sum made up from the combined pensions, basically finish t'other and just pay into t'rm.

[RobertT]

I have a pension plan from a few years ago with a previous employer. It's a Scottish Widows Pension and I was wondering if I could combine the two pensions to make one big pension, or would I be better off keeping them separated?

It will depend on which RM pension you are a member of:

1) If you started work with RM and joined the pension before April 2008 you will be a member of the final / career salary scheme, you can no longer transfer another pension into that scheme. You should however, be able to transfer one into an RM AVC.
2) If you started work with RM after April 2008 you will be a member of the RM Defined Contribution Plan and you should be able to transfer your SW pension into that.

Seems daft having two (taxed twice when they pay out?)

You will pay tax on your pension income in the same way as you currently pay it on your wages. So all income up to the Personal Tax Allowance is tax free, everything over that is taxable, regardless of it's source. You won't get taxed twice.

but I could also see the point of having them separate too (split any deflation in their values).

There are arguments for and against having separate pots, but the main points to look at are investment performance, charges, likely returns & spreading risk.

[savo]

When i was @ RM ( started 2004 ) i transferred 3 smallish pensions into the RM scheme ( 2 from previous jobs, and 1 private pension ).

Without checking my documents for exact figure, the 3 pensions "bought" me about 7 years extra service in the RM final salary scheme...

I was glad to get them all into 1 decent scheme , rather than have 4 seperate pensions, all the associated paperwork, contact nos etc..

I still have another pension from a previous employer kicking around, but that was final salary based, so i left that one where it was.

Will take RM pension @ age 60 + max lump sum allowed, unless my numbers come up or i get targeted by a drone, will prob still be grafting then, so it will be a useful top-up.

[RobertT]

When i was @ RM ( started 2004 ) i transferred 3 smallish pensions into the RM scheme ( 2 from previous jobs, and 1 private pension ).

That is no longer possible. See page 23 of the latest 'guide to benefits' for more info:
http://royalmailpensionplan.co.uk/55/rm ... -brochures" onclick="window.open(this.href);return false;

[fraser0911]

why bother paying in....
itll just come "off" your state pension.
that is unless of course you r payin in a small fortune

[RobertT]

why bother paying in....

To get a higher income in retirement.

itll just come "off" your state pension.

Means tested benefits may be reduced but your state pension won't as it's based on your NI record over the course of your life. And those means tested benefits will stop after 2017 anyway due to the introduction of the new flat rate state pension.

that is unless of course you r payin in a small fortune

Retirement is what you make it. If you want to exist on state pension alone that's great. If not, you need to save more money.

[fraser0911]

you are wasting your money enrolling in this scheme if you continue to pay in these miniscule amounts
it will merely be taken off your flat rate gov pension

[fraser0911]

most of us are just postmen we cannot afford to pay in large amounts
to make retirement fluffy
so just cancel your payment with zurich
the small weekly amounts you r payin in will just come off your flat rate gov pension of 140 pw anyway.

[RobertT]

most of us are just postmen we cannot afford to pay in large amounts
to make retirement fluffy

I except that not everybody can afford large amounts, but your payments benefit from tax relief, so a £10 p/w contribution for example will only actually cost you £8. Plus you get the RM contribution aswell.

so just cancel your payment with zurich

And say no to free money.

the small weekly amounts you r payin in will just come off your flat rate gov pension of 140 pw anyway.

No it won't!
http://www.bbc.co.uk/news/business-11619379" onclick="window.open(this.href);return false;

[flaminmoses]

best to ring up the pension providers involved imo and ask re benefits like death etc.

from what ive read on zurich they will pay out minus any death benefits from other pension providers.

havent rung around myself yet but what happens if your pot on one gets allocated to your wife or nominated person?
you then transfer that to zurich who pay a different way??4 times your annual salary minus ......what i put above.

find out first and work out what really is best in this scenario otherwise you may be transfering a pot and losing all the benefits related to it even if you are not contributign anymore.

[RobertT]

best to ring up the pension providers involved imo and ask re benefits like death etc.
from what ive read on zurich they will pay out minus any death benefits from other pension providers.

Only death in service benefits from other RM pension plans that you may have are potentially affected.

havent rung around myself yet but what happens if your pot on one gets allocated to your wife or nominated person?
you then transfer that to zurich who pay a different way??4 times your annual salary minus ......what i put above.

find out first and work out what really is best in this scenario otherwise you may be transfering a pot and losing all the benefits related to it even if you are not contributign anymore.

The Zurich pension is a defined contribution / money purchase scheme in the same as personal or stakeholder plan, therefore the death in service payment is something RM are giving you for being a member of that scheme and is separate from the pot of money you're building up to pay for your retirement.