I wasn't sure where to ask this but I'm just looking for POV about what to do with an existing pension.

My husband was made redundant last year and we are being asked to make a choice about his pension.
We can either 1) move it to a scheme they've recommended, 2) move it to a scheme of our choice, 3) withdraw the money, pay the tax and save the rest.

Now, I'm very wary of pensions with all that's gone on in the past with the government and worry that buy saving in one for the next 30 years he'll come out with nothing. My husband has recently started a good job with a pension scheme but he cannot join until he's been there for 3 months. We have to make a decision on the old one within the next fortnight.

I just wanted your thoughts on this and what you would consider doing?

I think you have to look at whether the new scheme is a defined benefit (DB) or defined contribution scheme (DC). If it is a DC scheme then you have no worry that if the new company goes bankrupt that you lose the money since the assets belong to you. The company is also likely to contribute to the scheme for you.

If its a DB scheme (which is probably unlikely since most have been shut to new joiners) then you need to look at the company and see how strong they are. If they are a strong employer and the pension scheme is funded well then you should be OK. If its a weak company with a very poorly funded scheme then you might be more cautious.

Regarding, cashing in. Generally, this is not a good idea as it means you lose all the tax benefits associated with the pension. If you are in a high tax bracket this can be very expensive to do and the gains you would need to make up with the remainder would be substantial. You're probably better off keeping the cash in the pension.

I'm not a pensions expert and all this depends upon your age and circumstances but hope it helps.