Personal Retirement Bond vs. Company Pension Scheme ?

U

Usjes

Registered User
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Hi,

I was made redundant last year and my pension pot was transferred to a PRB when my former employer wound up the company pension scheme. I am now with a new company and I am wondering what are the pros/cons of either keeping the old pension in the PRB or transferring it to my new employers' scheme ?
From what little details I have of the PRB it looks similar to a pension scheme, ie. I pay an annual %age management charge and my pot is invested in various funds until I retire. So in principle the only deciding factor I can think of is the size of the management fee of the PRB relative to the fee for my new employers' scheme (I'm assuming here that all schemes charge a fee that is a %age of your total pot each year ?) . Is there anything else I should consider ?
eg:
- I assume the options available for getting my money out on retirement are the same for a PRB and a company scheme ?
- Is there any inherent advantage/disadvantage to not having all your pension pot in one scheme ?
- Any other factors ?

Thanks ,

Usjes.
 
Usjes,


On the PRB you should be able to check which funds your PRB are in , that could be important because if you are youngish, funds are normally in slightly riskier funds that can grow faster (but riskier) if older you may want the funds in a less risky fund.

Largely getting your money in retirement are similar on PRB or company scheme, there will be some differences but nothing onerous.
By not having all in one pot ,you spread the risk eg if Company scheme collapses you still have PRB and vice versa.
Other factors are things like your age , how much you want @ retirement , realistically will both pension pots give you what you want etc.
Might be a good time to take to a recommended insurance Broker/financial adviser.
 
The charges would be the biggest factor. Some companies pay some of the management fee for their employees. In a PRB, you pay the full cost yourself.

In a company scheme, you may not have the same investment choice as you would with a PRB.

The major factor is the transferability of pensionable service. You must be in a pension scheme for 2 years to be entitled to your employers contributions (this can be waived by the trustee). If you transfer in the value of the PRB, the years pensionable service that you had in relation to that employment will transfer too. If you worked for you old employer for more than 2 years, once that PRB is transferred in, you will automatically be entitled to your new employers contributions.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
How big is the PRB and what age are you ? One advantage of the PRB is that you can get a lump sum at 50 years of age and invest the rest in an ARF.
 
elcato said:
How big is the PRB and what age are you ? One advantage of the PRB is that you can get a lump sum at 50 years of age and invest the rest in an ARF.
Click to expand...
If it comes from a DB scheme you can't move from a PRB to an ARF
 
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