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Have 2 small pension, is it worth combining them into my current pension scheme? Scheme just changed from final salary to contribution pension?

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Hi jennings01uk The right thing to do is to take financial advice before you make any comittment. Please feel free to contact me on dmorris@jsaifa.co.uk -- I would be more than happy to help.



Thanks DPMoney - not wishing to sound cheap or anything :) but would I have to pay for your advice?



Yes you would. Either a fee to me for the advice, or if we consolidated the pensions, then the fee could be paid directly by the pension, which means no outlay by you. Needless to say, I would explain that in full when I saw you. Rgds



OK - thank you but that's not an avenue I particularly want to go down at the moment but will keep you in mind for the future if that is OK - thanks for the offer though



No probs. But be careful doing anything without advice. You don't need to be charged a fortune but a good adviser is a very strong asset and he/she should ensure you do the right thing. Good luck.



Not an easy question to answer without the details. It's essentially depends on what 'Transfer Value' your new scheme will give you for your old ones & what rates the scheme benefits 'Revalue' (i.e. increase each year). Basically though if I'm right in assuming that your previous 2 schemes were Final Salary ('Defined Benefit') and that your new scheme is Money Purchase ('Defined Contribution') then the chances are that you'll be much better-off staying as you are.



The general rule is that you should not transfer any Final Salary benefits. It is quite likely that the FS benefits are underfunded and the transfer could be reduced to allow for it. It is also very likely that the valuation factors will not take account of future longevity improvements and may not even be up to date on those. Mike