Is there a problem with having lots of different pensions

3

3CC

Registered User
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Due to my work history, I will have a number of different small pensions at retirement.

- Retirement Annuity Contract from time spent in private sector.
- Superannuation scheme from c. 7 years local authorities.
- I am considering setting up a personal pension with Standard Life for current work in the private sector.

I like the idea of having my pension spread around a number of different providers to avoid risk of one company getting into trouble.

Are there are disadvantages of having lots of little pensions. Am I creating a minefield that will need to be disentangled at retirement?

Thanks for any advice.

Regards,

3CC.
 
No minefild atall in having a mix of pensions.Just a bit more paperwork.

You did not mention your standard old age contributory pension as well, I presume you have nuff contributions for that as well.

I do not see any of these pension providers going bust and there are systems in place to protect most pensions, but if they do we are all banjaxed!

Another pension for current work. Does your new employr not have a scheme you can attach to?
 
There is certainly a benefit of reduced risk in 'spreading your bets'. The so-called 'gold-plated public pension' is actually quite risky, and depends on the largesse and financial stability of future Governments. I wouldn't want to have ALL my pension eggs in that one basket.
 
Besides having more policies, there's no real disadvantage.

Some providers have access to some very good funds that others don't, so it can be beneficial that way.

I wouldn't be concerned about one of them going bust, as long as it's a main stream, large provider. They all satisfy the EU capitalisation requirements and more and are owned by bigger multi nationals.

Don't fall into the trap of thinking that by investing in Standard's Balanced fund and Zurich Balanced Fund you are getting diversification. You are getting none. They all largely invest in the same thing.

Pick an investment strategy and use it for all of the private pensions you have.


Steven
www.bluewaterfp.ie
 
Hi Gerry,

Thanks for your response.

You did not mention your standard old age contributory pension as well, I presume you have nuff contributions for that as well.
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Yes, I should be ok for the state pension. I have about 20 years of PRSI so far but I am only 43 so I have plenty of time to get the 30 years maximum (provided the govt do not move the goalposts).

Another pension for current work. Does your new employr not have a scheme you can attach to?
Click to expand...

I did not join my employer scheme as it was a bit rubbish (no contribution from employer and charges not competitive) so I hope to commence my own PRSA or Personal Pension instead.

Regards,

3CC.
 
Hi RainyDay & Steven,

Thank you for your replies. I agree that the state pension is only as safe as the govt's ability to pay it. For me that question will be answered about 25 years from now when hopefully Ireland Inc will be blossoming once again.

Many thanks,

3CC
 
Gerry Canning said:
I do not see any of these pension providers going bust and there are systems in place to protect most pensions, but if they do we are all banjaxed!
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Can you expand on this generalisation please ? " there are systems are in place to protect most pensions" in the event of an insurer going bust ?
 
punter said:
Can you expand on this generalisation please ? " there are systems are in place to protect most pensions" in the event of an insurer going bust ?
Click to expand...

I am NOT a pension expert , but from reading Newspapers I picked up that most regulated European wide pensions are covered up to 100% on pensions up to circa 15,000 per annum and graduated reductions after the 15,000.
Again from memory (dangerous), are the people in Waterford Glass not now covered to some degree?



I am sure other knowledgeable contributors will advise and enlighten me!
 
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