It's tempting to transfer this defined contribution pension (the benefits are not linked to salary) into a self-invested personal pension (Sipp) where I have a better chance of beating the market (the workplace pension is wholly invested in passives). However, if I do that, I will have to sacrifice a key benefit of the old contract.
Historically, the earliest age that pension scheme members could take their retirement benefits was 50 and this still applies to my old scheme. If I transfer it into a Sipp I will only be able to access it at 55, under the minimum age pension rules introduced on 6 April 2010.
As I value flexibility, I think early access is a good enough reason to stay put. If you also take the time to mull over past workplace pensions, it is crucial to look at all aspects of an old scheme before transferring out. Valuable benefits that you may leave behind include:
* Inflation guarantees: these are a key advantage of many public sector pensions.
* Death benefits: these may not be matched in a personal pension without having to buy a separate life insurance policy.
* Higher tax-free cash sum: people with occupational scheme benefits prior to 6 April 2006 may be entitled to tax free cash higher than the standard 25 per cent.
