I have a small pension from when I worked at EDS. I also have a much larger stakeholder pension with AXA. With all the talk of pension defecits and companies going bankrupt is it perhaps worth transferring the EDS pension into the AXA one?. The EDS pension has lower fees so it better to keep the money in it but is it as safe? I phoned them out of interest and they said the money is just as safe as the stakeholder as it is administered by trustees. Is this true?
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How safe is my EDS pension?
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Originally posted by Lewis View PostI have a small pension from when I worked at EDS. I also have a much larger stakeholder pension with AXA. With all the talk of pension defecits and companies going bankrupt is it perhaps worth transferring the EDS pension into the AXA one?. The EDS pension has lower fees so it better to keep the money in it but is it as safe? I phoned them out of interest and they said the money is just as safe as the stakeholder as it is administered by trustees. Is this true?If your company is the best place to work in, for a mere £500 p/d, you can advertise here.Comment
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Originally posted by Lewis View Postjust as safe as the stakeholder
Another fine mess you've got us into, Gordon.Comment
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Originally posted by Lewis View PostI have a small pension from when I worked at EDS. I also have a much larger stakeholder pension with AXA. With all the talk of pension defecits and companies going bankrupt is it perhaps worth transferring the EDS pension into the AXA one?. The EDS pension has lower fees so it better to keep the money in it but is it as safe? I phoned them out of interest and they said the money is just as safe as the stakeholder as it is administered by trustees. Is this true?
A. If it is a Defined Contribution scheme then you have a personal pot of money much the same as your AXA stakeholder. This is money that has been put aside and held by trustees so there should be no concerns about the solvency of your previous employer.
B. If it is a Defined Benefit scheme then this is a promise to effectively continue paying you some deferred salary after you retire. This promise is worthless if the company that made it no longer exists.
I don't know what type of scheme the EDS one is but I would be surprised if it does not fall into category A above.
If it does fall into B then it is a better scheme because you have some certainty about the amount it will pay when you retire and for that reason it would probably not be a good idea to transfer it to a private provider* There is now a pension protection scheme operated by the government so that provides some additional protection for you (for as long as the country can afford it).
*I am in no position to offer financial advice and my comments should not be seen as such.Comment
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