Clients ask me this question regularly when we meet. So what does happen with your old pension?
We are often solely focused on a fresh start and looking forward when we move job. We neglect to address what we’re leaving behind – our own pension funds!
What you are allowed to do with your existing plan can vary. This depends on the structure of the pension scheme. You may be entitled to leave the funds in the scheme until you reach retirement age (normally 65) however there are other options that will allow you take control of your pension fund, control how you invest it and control when and how you draw it down.
For example you can transfer it into a:
- Pension plan with your new employer.
- Personal Retirement Savings Account (PRSA) and continue saving in to it.
- Personal Retirement Bond (PRB) and access it from the age of 50.
Like all important financial planning decisions, your individual goals and objectives will determine what option is best for you.
As a starting point you should seek out independent advice from a trusted advisor.
So if you’re wondering what you do about your old pension, get in touch with us today at Coleman Financial Planning to discover what option suits you best.
Make a start on giving yourself the retirement options you deserve!