Transfer Pension to a Buy-out Bond

I've recently changed employment & I have to decide what to do with my Pension from my old job.
I'd like to transfer to a buy-out bond but to a company & fund of my choosing, am I correct in thinking that I can select a fund (if that the correct description) into which I can transfer the current pension value, but I cannot contribute any more to this "fund"/buy-out bond. Apart from not being able to continue contributing is this then treated like any other fund insofar as I can decide annually which fund I'd like the money invested in?

Thanks

You're correct in everything you say.

Almost all pension companies have a Buy Out Bond (a.k.a. Personal Retirement Bond) product and each one has a choice of funds available within their product.

You can switch funds as often as you like. Given the long-term nature of pension investments, I would question the benefit of changing your fund choice annually (if that's what you're suggesting you want to do) but it's certainly possible.

Liam D. Ferguson
www.ferga.com

LDFerguson said:

You can switch funds as often as you like

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True, but most life companies only allow 1 or 2 free switches a year, any more than that and there's a fee.

If the transfer value is less than €10K, the OP may consider transferring to a PRSA? No fees can be charged on this (whereas if you transfer to a Buy Out Bond, some intermediaries may charge a % commission). Although the choices of funds available on a PRSA may be fewer than that of a Buy Out Bond.

Almost all pension companies have a Buy Out Bond (a.k.a. Personal Retirement Bond) product and each one has a choice of funds available within their product.

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Does this mean I must select a fund from the the pension co. (Ark Life) that holds the pension at present, or can I choose another pension co?
Regarding switching funds, really I only wanted to know the flexibility to switch would be normal - as I come closer to retirement naturally I would like to select lower risk funds.

Thanks

You can choose any of the buy-out bond providers (pretty much all the household name life insurance/investment companies).

You should certainly shop around as widely as possible when looking for a buy out bond provider, product and fund when transferring from another pension fund to get the best overall deal suitable for your specific circumstances. If necessary get independent, professional advice and avoid tied agents/sales people until you know that you already want their products.