Pensions

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6. What if you change jobs?

Pension transfers are horribly complicated but the subject is likely to crop up every time you change jobs.

If you were in your previous employer's company scheme for less than two years you should be able to claim back your own contributions (not the employer's), less a charge for tax. After two years:

• You can leave the pension benefit in the former employer's scheme until you retire (known as a 'deferred' or 'preserved' pension).
• You can take a transfer of benefits (the "transfer value") to your new employer's scheme.
• You can take a transfer value to a personal pension - but remember, you will lose out on the guarantees associated with salary linked pensions. Do not consider this route unless the two main options above are not appropriate.
• If you are over age 50 you may be able to take early retirement benefits from the scheme. The pension is usually severely reduced if you go early unless there is a voluntary redundancy programme in place which offers enhanced terms.

Seek advice on this subject!

1. Don't rely on the state scheme! 2. Private pensions: your most tax efficient investment 3. Company pension schemes 4. How to top up your company pension 5. Factors when topping up a company pension 6. What if you change jobs? 7. SSASs for small companies 8. Personal pensions 9. Value for money personal pensions 10. Aim for a balanced pension portfolio 11. How much can you invest in a personal plan? 12. Choosing a fund 13. Personal pensions with greater investment scope 14. Use your plan to get out of S2P 15. Do you need an adviser? 16. Conclusion

• Pension Power