Transfering Uk pensions into 1 fund.

6 posts in this topic

This should be easy but it isn't. I have 4 dormant pension funds worth between a few hundred and a few thousand Pounds. The returns are on them if they stay as they are are negligible so I wanted to combine them into one fund but I can only do that if I go through a Pension advisor who will no doubt take a fee. I thought about closing them and putting the money into Premium Bonds but only 25% of each fund will be tax free and tax on the other 75% will be upto 55%. I also looked at setting up a new fund with all 4 paid in but again I have to go through a Pension Advisor. I do not intend putting anymore funds into these schemes because they will all pay up within 7 years so the amount they can accumulate is actually very limited, that's supposing I had spare funds to put into them and the stock market doesn't crash again.

 

Has anyone got any ideas on how I can maximise the return from these funds without losing a big chunk?

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I have the same situation. One small fund (I’ve another small fund too) recently matured and I was told that I can take the 25% tax free whenever I want and just leave the rest. I either take all of the rest and pay the relevant tax, or transfer the remaining fund that allows ‘draw down’. No idea what tax would apply to that. I’ve still to look into the options.  

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i was told Emkay by one fund that tax would be 20% on remainder, however searching on the internet shows up a tax of 55% so I really don't know. It's really down to how much you have in the fund and if the projected pension forecast makes it worthwhle hanging on. e.g. One of my funds I might get 100 GBP a year as a pension. Laughable.

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The individual value of each is pitiful and the admin costs will eat into them, the return on each is quoted as annually rather than monthly, that should give you an idea about their true values. On top of that having to deal with the german tax system with regard to 4 additional pension schemes will be a nightmare. So by combining them I should get a small single monthly payment from them and pay costs on one fund rather than 4.

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Thanks x the answer.

 

I thought the costs were always a set percentage of the fund value. If they were, there wouldn't be any savings in admin costs by combining them. Obviously not so from what you wrote.

 

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