Safeguard future payments from UK private pension
I am in my 30s and worked for 10 years in the UK before moving to France, during which time I paid into a private pension scheme through my employer. Do I need to do anything to safeguard my future pension payments due from this contribution? L.H.
It is not uncommon for some UK pension schemes to be set up with a charge for regular contributions. The issue here is that if you cease the regular contributions then the regular charge continues and so, evidently the value of your contract decreases over time.
So the first thing to do is to check with your pension provider to see whether these regular charges are being made despite the contract not receiving contributions.
If they are, it may be wise to look to change to another type of pension contract which is established more on the basis of single one-off premiums and which, therefore, does not have the inherent regular charge based on contributions being made.
However you would need to check that the costs of transferring to any new scheme would not be greater than those you would suffer on the current contract over its remaining life.
Reader's query answered by Hugh MacDonald
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