I received a statement from an old works pension that I had, which I completely forgot about. Its with Aegon and there is only a few thousand pounds in there.
I currently have my actual pension with my work place that is a government department and it is not paid into this old pension.
My question is, and I’m sure its been asked before, so apologies in advance, but can I move this old pension sum into my Freetrade ISA account? If so, has anyone done this before?
I don’t think it’s possible to move pension to ISA, you can only move pension to pension, so you could consider transferring it into a Freetrade SIPP?
I believe weenie is correct. And if you were able to take the money out the pension you would end up paying heavy tax on it.
Your best option would be to either leave it as it, or transfer it to a SIPP.
You should check the terms of your current pension with Aegon to understand the fees and if it has any particular benefits.
If it is a simple pension with no particular benefits, you could consider transferring it to one you can more easily manage.
However as it’s only a few thousand pounds it’s likely not worth transferring to Freetrade unless you already pay for a plus account. As the fees are fixed
If you were considering transferring the SIPP as it’s a small amount you might want to consider a percentage fee based broker like vanguard. As this may even lower the cost compared to what you’re currently paying.
I assume you’re currently still employed by the government? And you’re not receiving a government job pension but are paying into one?
i don’t think you can transfer your old pension into tour gov defined benefit pension but this might also be something you want to check.
Do not take any action with your pension without understanding what you currently have, costs, and implications of transferring, etc.
It’s possible to transfer pensions, yes. If the investments aren’t on the Freetrade platform, you’d have to sell the investment first and transfer the cash. I did this, and it worked well (coincidentally it was an Aegon Retiready pension).
BUT first you should check with Aegon whether your old pension has any “special features”. These might be bad things like chunky exit costs or good things like guaranteed future annuity rates if you stay with them. So you need to find out about those before you decide whether to transfer or not. More on the questions you might ask them here: MEGATHREAD: Freetrade SIPP - #24 by rod and if in any doubt speak to an independent financial advisor first.
My workplace pension provider didn’t say it would be an issue transfering to Freetrade. This is after they asked who the funds would be transfered to.
If you are under 55 (in UK) you cannot usually draw down on a pension, so it would need transferred into another pension account if allowed by the current company.
The FT SIPP would be the only possibility here.
I think you definitely need to check this first!
If in doubt what something/a benefit from a pension is worth, consult an independent advisor.
I believe if the cash equivalent value is less than £10000 you could take it as a pension small pot payment cash lump sum. Then you could pay it into Freetrade