Hi,
I have recently left employment where I was in a Group Personal Pension Plan (managed by Scottish Life). I started the policy May
2002 and the last contribution was May 2003.
Prior to that I contributed to a final salary scheme for about 14 years, which is now paid up.
My new employer offers a stakeholder pension scheme, but I don't have any details yet.
Scottish Life have written to me offering the choice of a) continuing contributions myself, b) suspending contributions and incur holiday charges, c) ceasing regular contributions.
I'm a bit confused about which option to go for. What things should I be considering in order to make an informed decision?
My original reasons for joining the Scottish Life plan were tax efficiency and employer contributions.
If I continue making contributions myself, can I retain the tax effieciency without getting my new employer to pay directly to the scheme before deducting income tax? The same question if I cease regular contributions but pay make further lump sum payments?
If not then without the tax efficiency and employer contribution I am inclined to put my money into another investment of choice, ideally something a bit more flexible than a pension scheme.
Then the choice is to make the plan paid up, or transfer it to the scheme with my new employer. The transfer value is £2k.
Still trying to make sense of this all. Any comments gratefully received.
Cheers,
-bernie.