Moving Pension from Reassure to Royal London

oligopoly
oligopoly Posts: 389 Forumite
Name Dropper First Post First Anniversary Combo Breaker
in Pensions, annuities & retirement planning
First off, I appreciate that no-one can give me financial advise on this but interested to hear people's thoughts as my knowledge on this is very limited...

I had a company pension with HSBC, which Reassure bought up a couple of years ago. The feeling at my work seems to be that Reassure have no interest in trying to invest or grow our pension amounts as it's a closed scheme. Therefore I am interested in moving the whole lot to my company's new pension scheme, offered by Royal London. This scheme seems a lot more active and much more transparent (I can log in and see my current balance - hooray!)

I just called Royal London and they said they don't normally allow people to transfer their pension pots unless instructed by a Financial Advisor. I can understand why the financial companies might be a little jumpy at the moment with the recent PPI debacle.

They said it can be done without a Financial Advisor (EXO/execution only) but I need to write a letter to state I am happy to do so etc.

With little experience or knowledge on this - but with a naturally paranoid mindset - is there any big reason for not transferring the money? Any questions I should be asking Reassure first? Or does it sound like a simple question of moving the funds as though it was from a savings account that has it's % slashed to a new account with 2.5%?

I know there is no Guaranteed Annuity Rate or Guaranteed Minimum Pension on my Reassure scheme...

Thanks in advance.
Increasingly money-conscious
:cool:

Comments

  • dunstonh
    dunstonh Posts: 116,345 Forumite
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    The feeling at my work seems to be that Reassure have no interest in trying to invest or grow our pension amounts as it's a closed scheme.

    They still operate investment funds and whilst they will not be fully resourced, they are not doing a bad job on the unit linked funds.
    I just called Royal London and they said they don't normally allow people to transfer their pension pots unless instructed by a Financial Advisor. I can understand why the financial companies might be a little jumpy at the moment with the recent PPI debacle.

    its more to do with their distribution channels and regulatory permissions. They do not have an advice authorisation. For example, if you use the non-advised royal london pension, it is less advanced and more than double the annual charges of the advised version.
    With little experience or knowledge on this - but with a naturally paranoid mindset - is there any big reason for not transferring the money?

    Which is better? old one or new one (or other alternative)? I dont mean you guessing or making assumptions. I mean proper analysis. Have you compared the two?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • oligopoly
    oligopoly Posts: 389 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    dunstonh wrote: »
    They still operate investment funds and whilst they will not be fully resourced, they are not doing a bad job on the unit linked funds.

    Oh really? Interesting to know...
    dunstonh wrote: »
    Which is better? old one or new one (or other alternative)? I dont mean you guessing or making assumptions. I mean proper analysis. Have you compared the two?

    I wouldn't have a clue on how to measure this - isn't it all sort of guess work?. I can see the Royal London 'Balanced Lifestyle Strategy' has 31 years of 'RLP Global Managed' fund name at 72.5% invested, RLP Property at 17.5%... Is that the sort of thing you mean?

    Maybe i do need to speak to a FI...
    Increasingly money-conscious
    :cool:
  • dunstonh
    dunstonh Posts: 116,345 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    I wouldn't have a clue on how to measure this - isn't it all sort of guess work?.

    No. Virtually all of it is measurable and factual. A small part may be due to investments or service. Charges, features, options are all factual.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • xylophone
    xylophone Posts: 44,375 Forumite
    Name Dropper First Anniversary First Post
    if you use the non-advised royal london pension, it is less advanced and more than double the annual charges of the advised version.

    The OP wants to transfer the Reassure pension into his existing company pension with Royal London so the fees/charges etc would be what he is paying now?

    Or do you mean that if he transferred out without advice Royal London would insist that he took out a new "unadvised" pension which would be double what he is paying now?
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