Sumary of Should I leave my ‘with profits’ pensions where they are or move them?:
- I have three small pension pots and don’t know whether to combine them or leave them as is.
- I am 56 and not thinking of using them until I am at least 67.The pensions are:1. Scottish Widows with profits transfer value £15,0002. Standard Life with profits transfer value £39,0003. Legal &
- General multi asset fund £7,000 Retirement finances: Should I leave my ‘with profits’ pensions where they are or move them into another combined pot?
- Someone told me that with profits pots are hindering my fund and I should move them into a fully flexible Liverpool Victoria account but it will cost me £2,500 to do this.
- SCROLL DOWN TO FIND OUT HOW TO ASK STEVE YOUR PENSION QUESTION Steve Webb replies: Large numbers of so-called ‘with-profits’ policies were sold years ago, and those who still hold these old-style policies need to understand how they work and think very carefully before cashing them in.
- Steve Webb: Find out how to ask the former Pensions Minister a question about your retirement savings in the box belowIn brief, when you put money in a with-profits pension or investment it is invested across a range of assets in the usual way.
- By smoothing in this way, the value of your policy will generally rise much more steadily than if it exactly the tracked the underlying value of the investments.
- Given that you have said that you don’t plan to use these funds for another decade, this would be a good reason to think very carefully before you consider transferring out.