Question regarding my pension

S

Samantha

Registered User
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I took a personnal pension 7 years ago with Canada life as my job did not offer one, I am now in a new employment and my company do have a pension scheme, the employer contributes at 4 % but as far as I can gather this pension is not performing as well as Canada life.
I am reluctant to terminate my personnal pension to go to the pension scheme but in a way I am losing the 4 % contribution of my company if I don't do it which it is like trowing money away.
What would happen to the contribution of my personnal pension if I suspend the policy ? I can't find anywhere on my policy the charges, it is not clear for me.
Any advice.
Thanks
 
If it is a defined contributions scheme which it probably is you will have to contribute a significant percentage to make the pension worthwhile in the future. You should be contributing the max allowed for your age.
If you don't have to contribute to your new company pension, why don't you continue to contribute to the Canada Life as an AVC pension up to the max allowed for your age. (Remember to increase contributions each year especially when max allowed for age group is increased). I don't think this should be a problem
 
Thanks asdfg

I am not obliged to contribute to the company pension but most person think that I am crazy not to because I am losing of the 4% contribution that my company will do if I joined the scheme.
If I decide to go with the company pension, what will be the implication for my personal pension, I know I cannot continue to contribute toward it or transfer it to the company pension therefore what I already paid (I guess) will be frozen until retirement age which is still a long way coming (32 years). I am really confused
 
If I were you I'd join the company pension scheme availing of the 4% from the company.
Ask the company/trustees/insurance company to give a projection of expected pension when you retire. They will make certain assumptions in relation to inflation expected returns and other. Ask what assumptions they are making. These assumptions may or may not be achieved. Remember "Past performance is no guarantee of future returns"
I would also continue to fund the Canada Life fund as a type of Additional Voluntary Contribution AVC Plan. Try to put away as much as possible here. Again ask for expected pension on retirement.
If you have to freeze the Canada Life pension, ask them can you set up another pension a "Standalone PRSA AVC" pension.
I know the whole pension market is a minefield.
Hope this makes sense
 
If you stop paying into your Canada Life Personal Pension Plan, the technical term for this is making the plan "paid up".

The amount of money you have already built up will continue to participate in the rises and falls of your chosen Canada Life fund. Some charges will continue to be deducted from your Personal Pension - check with Canada Life what charges will continue if you make your Personal Pension paid-up.

If, as has been suggested above, you want to continue with Canada Life, you need to start an AVC PRSA with them, as a supplement to your Occupational Pension Scheme contributions.

...as far as I can gather this pension is not performing as well as Canada life.
Click to expand...

Past performance is not a guide to future returns.
 
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