Tracking down a workplace pension

[Orang Utan]

Hi, an ex-colleague reminded me that the company we used to work for had a final salary pension scheme. i probably didn’t know what that meant at the time, so will have 9 years worth of pension to track down. It should be easy to do so, despite the fact that the government pension finder website gave the details of the wrong company. i have never thought about pensions much and have never saved, so would be interested to see if i will have a less poverty stricken retirement than i imagined.
how do people keep on top of their workplace pensions and can you consolidate them to make them easier to track?

 

[danny la rouge]

how do people keep on top of their workplace pensions and can you consolidate them to make them easier to track?

You can consolidate them, but seek advice. Obviously anything in a final salary scheme should stay exactly where it is.

(I speak, however, as someone without adequate pension provision).

 

[Fozzie Bear]

Your best bet is to contact the pension provider. Presumably your ex colleague knows which one it is.

You can consolidate these things but it is a pain in the arse and you might lost funds because people take a cut for sorting it out (sometimes on both sides).

Moving the funds in a final salary pension scheme into a defined contribution scheme is one of the dumbest things you can do.

 

[Fozzie Bear]

You can check your state pension here: Check your State Pension forecast

 

[Orang Utan]

Your best bet is to contact the pension provider. Presumably your ex colleague knows which one it is.

You can consolidate these things but it is a pain in the arse and you might lost funds because people take a cut for sorting it out (sometimes on both sides).

Moving the funds in a final salary pension scheme into a defined benefit scheme is one of the dumbest things you can do.

i know nothing about pensions. i just don’t want to lose track of a decent pension, even it’s only nine years’ worth. i’m hoping that when i get in touch with them, they’ll keep me in the loop so i don’t lose it again.

 

[Orang Utan]

You can check your state pension here: Check your State Pension forecast

would that go on top of a workplace pension?

 

[Orang Utan]

You can consolidate them, but seek advice. Obviously anything in a final salary scheme should stay exactly where it is.

there’s nothing obvious about it as i know nothing about it!

 

[Elpenor]

would that go on top of a workplace pension?

Yes. It’s separate.

Find pension contact details

Find the contact details for a pension provider by using the Pension Tracing Service

www.gov.uk

This is the link for tracking down a workplace pension.

 

[Fozzie Bear]

would that go on top of a workplace pension?

Yes the state pension comes from your National Insurance payments. So the workplace pension is on top of that.

 

[Elpenor]

Your best bet is to contact the pension provider. Presumably your ex colleague knows which one it is.

You can consolidate these things but it is a pain in the arse and you might lost funds because people take a cut for sorting it out (sometimes on both sides).

Moving the funds in a final salary pension scheme into a defined benefit scheme is one of the dumbest things you can do.

I think you mean defined contribution scheme, not defined benefit.

There are some obscure reasons why it might be worthwhile to transfer from DB into a SIPP arrangement but only in certain circumstances and typically only for very large pension pots.

 

[Pickman's model]

Yes the state pension comes from your National Insurance payments. So the workplace pittance is on top of that.

C4U

 

[danny la rouge]

there’s nothing obvious about it as i know nothing about it!

Fair point. OK, a final salary scheme is a rare and advantageous arrangement and the best place to leave whatever pot is in it. Moving that money elsewhere is a bad idea.

 

[Fozzie Bear]

I think you mean defined contribution scheme, not defined benefit.

There are some obscure reasons why it might be worthwhile to transfer from DB into a SIPP arrangement but only in certain circumstances and typically only for very large pension pots.

erk yes, thanks. I will edit.

 

[MickiQ]

Yes but you don't get taxed on a state pension only a private one

You can check your state pension here: Check your State Pension forecast

That was a very useful link which has revealed a very interesting fact, The figure for 5 Apr 2021 is only £7.29pw less than the projected figure for 5 Apr 2023 (I turn 66 in Nov of that year)

 

[Orang Utan]

Yes. It’s separate.

Find pension contact details

Find the contact details for a pension provider by using the Pension Tracing Service

www.gov.uk

This is the link for tracking down a workplace pension.

aye, i mentioned that in the OP

 

[marty21]

Fair point. OK, a final salary scheme is a rare and advantageous arrangement and the best place to leave whatever pot is in it. Moving that money elsewhere is a bad idea.

This , 9 years of a final salary pension could be very nice , the reason they stopped them for new entrants is that they were generous.

 

[The39thStep]

Yes but you don't get taxed on a state pension only a private one

That was a very useful link which has revealed a very interesting fact, The figure for 5 Apr 2021 is only £7.29pw less than the projected figure for 5 Apr 2023 (I turn 66 in Nov of that year)

It counts towards your earnings and tax thresholds though ?

 

[Orang Utan]

so is 9 years worth of a final salary pension worth chasing up then?

 

[marty21]

so is 9 years worth of a final salary pension worth chasing up then?

Just to update them on where you are , leave it there til you retire. You will probably be able to access it at 55.

 

[mx wcfc]

It counts towards your earnings and tax thresholds though ?

Yes it does. It is just not taxed at source.

 

[Sue]

i know nothing about pensions. i just don’t want to lose track of a decent pension, even it’s only nine years’ worth. i’m hoping that when i get in touch with them, they’ll keep me in the loop so i don’t lose it again.

Yes, they should send an annual statement but guessing you've moved a bit so they've lost track of you.

But once you're back in touch, they'll then know where to send it in future do should all be good.

 

[Sue]

so is 9 years worth of a final salary pension worth chasing up then?

Definitely. It's probably index linked so might be worth more than you imagine.

 

[ElizabethofYork]

so is 9 years worth of a final salary pension worth chasing up then?

Yes, it could be quite a nice little amount. Don't move it, just make sure they have your contact details.

 

[smmudge]

I think the problem with the govt pension tracker is that it generally only tells you the pension provider for the company now, but it's not very good at telling you the ones they might have used in the past (not used it myself however).

 

[mx wcfc]

Definitely. It's probably index linked so might be worth more than you imagine.

I have an indexed linked final salary pension scheme, from my time in the civil service. I did 3 years, so it was 3/80ths of my finishing salary. It was worth £444 pa when I left, and is £1,124 pa now. Might be £100 a month by the time I retire!

 

[Elpenor]

aye, i mentioned that in the OP

Oops, but useful for others hopefully

 

[tony.c]

so is 9 years worth of a final salary pension worth chasing up then?

A friend who worked for Royal Mail for 11 years in the 70/80s got a pension from them of about £5,000 pa and a lump sum of £15,000 a couple of years back. And it will increase with inflation. So yes it's worth getting.
I worked for General Motors for one year in 1972/3 and my pension from them was only about £3.60 pa! But I was given the choice of a lump sum of £25 instead which I took.

 

[Orang Utan]

Definitely. It's probably index linked so might be worth more than you imagine.

my ex-colleague is 61 and checked it out and he could afford to pay off his mortgage and travel around america for three months, just off his lump sum awarded on retirement. he probably has more than twice what i’d be up for on retirement cos he was there for 14 years and got paid a lot more than me.

 

[tony.c]

how do people keep on top of their workplace pensions

When you track them down make sure they are kept up to date with you current address so they can contact you when pension is due.
Ask them for current estimate of projected pension.
You can usually draw a pension before the scheme's retirement age but it will be reduced. In the Royal Mail scheme it would be reduced by 5% for every year taken before usual retirement age.
So as others have said if it is a index linked pension it is worth keeping, especially if it is RPI linked which older pensions generally are, rather than newer CPI linked schemes.

 

[metalguru]

9 years is roughly about a quarter of a career in the public sector - so it'll be worth getting.

It helps to have worked the right 9 years. I was just looking through a history of public sector pay restraint:

2010 - 2012 - 2 year pay freeze except workers earning below £21k
2013- 2015 - limited to an average of 1% a year
2015-2017 - limited to an average of 1% a year
2018-2020 - no explicit pay policy
2021 - pay freeze, excluding NHS workers and those earning below £24,000

As a public sector worker myself, this years does feel like continuation of a "lost decade".