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When you leave a job which provided you with pension benefits, you need to make decisions in relation to these benefits. If done in the right way, this can be used as a great opportunity to review your pension provision and make any necessary adjustments.

On leaving a job you should receive a Leaving Service Options letter which typically contains:

• A cover letter
• Summary of your current pension – this contains important information such as the date you joined service, the date you joined the pension scheme, the date you left service and the value of your pension.
• Options statement – this outlines the choices available in your specific situation (explained below)
• Decision form – this is a tick-box form where you select the desired option.

If you did not receive this letter or you misplaced it, there is no need to worry. It does not matter if you left your job last week, last year, or a decade ago, you can request a copy of your options from your old employer at any time. Typically, there are three main options when you leave your job:

1) Do nothing.

This requires no action and your money just stays within your old employer’s pension scheme, but before you slip into this default option you should ask yourself some important questions:

• How much control will you have over your pension?
• Will you be able to make investment choices?
• Has the pension performed well?
• Are the charges reasonable?
• Is the provider responsive, informative, and transparent?
• Will you receive ongoing pension advice?

2) Move your pension to your new employer.

• Moving your pension from an old job into your new one has the benefit of keeping everything in one place.
• On the other hand, the same arguments about control, charges and investment choice apply as outlined in Option 1.
• You will also miss an opportunity to build up a pension pot which is not tied to any employer and is in your name only. This means you are also giving up the option to access these particular retirement benefits from as early as 50 years old.

3) Move your pension into an account in your own name.

• It is possible to move your pension into an account with only your name on it.
• Taking control of pensions from previous jobs has several advantages. It allows you to cut ties with your old job and, at the same time, the pension stays independent from your new employer.
• You control the investment choice and charging structure.
• You can move from one pension provider to another if an investment opportunity arises.
• You can access retirement benefits from age 50 onwards.

Have you received Leaving Service Options from a previous job? If so, you should contact a Qualified Financial Advisor who will help you make sense of your options and ensure you make the choice that best suits your specific circumstances.

Adrian Kelly QFA, is a Qualified Financial Advisor.You can contact him through John F. Loughrey Financial Services Ltd by telephone on 074-9124002 or by email on adrian@jfl.ie