Company pension v personal pension v SIPP

Hello all

I wonder if you might be able to give me some advice.

I am 37 and have two pension pots:
1. Aviva £70k approx. It is from a previous employer and I assume now frozen? I can chose from a number of funds to invest in and it is currently split 80% equities, 10% property and 10% bonds. AMC 0.49%.
2. Standard Life £20k - this is my current employer's auto enrolment pension. My employer pays the bare minimum and so I have made additional payments since 2015. It is invested in the SL Active Plus III pension fund. The AMC is 1.01%

A couple of questions:
1. Should I open a private pension/ SIPP and put my additional contributions there? I haven't got much time to be able to actively manage a pension - I use Vanguard funds for my S&S ISA.
2. Will I be able to transfer the £20k currently in SL to my personal pension/ SIPP but leave the fund open for future auto enrolment payments? Or is this a waste of time?
3. Does anyone know whether Aviva would accept transfers in/ new money to my old pension? It has performed well and the fees appear reasonable (are they?) or should I transfer this out to a new pension/ SIPP to keep things tidy?


Sorry for the stupid questions - I find the whole thing so confusing!

Thank you
Saving for an early retirement!

Comments

  • Lokolo
    Lokolo Posts: 20,861
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    1. If your company offers salary sacrifice, use the SL pension over SIPP

    2. Only if the scheme allows it. It seems pointless to do so though. Not sure what you are trying to achieve from it.

    3. If it was from a previous employer it's likely to be closed for additional contributions. It is up to you if you want to transfer it out to a SIPP, this could be more expensive depending on the platform you choose.
  • dunstonh
    dunstonh Posts: 116,038
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    Company pension v personal pension v SIPP

    And I assume the other options you havent mentioned too.....
    and I assume now frozen?

    Frozen has a specific meaning. So, no. it is not frozen.
    1. Should I open a private pension/ SIPP and put my additional contributions there? I haven't got much time to be able to actively manage a pension - I use Vanguard funds for my S&S ISA.

    If that is what you want to do then you can. It may or may not be the best option depending on what you choose and how it compares with the other options you have available.
    2. Will I be able to transfer the £20k currently in SL to my personal pension/ SIPP but leave the fund open for future auto enrolment payments? Or is this a waste of time?

    You should be able to. However, there can be consequences with some employers. Such as having to opt out first, transfer and then wait until the next opt in point. Not sure why you would want to do this though.
    3. Does anyone know whether Aviva would accept transfers in/ new money to my old pension? It has performed well and the fees appear reasonable (are they?) or should I transfer this out to a new pension/ SIPP to keep things tidy?

    How do you know if it has performed well? What are you benchmarking it to?
    Aviva have lots of legacy plans that are no longer available for increments and some that are. Then they have their current offering on the Aviva platform that is cheaper than what you have at the moment.

    The SL fund is doing well against its benchmark but you dont mention that one as doing well.
    Sorry for the stupid questions - I find the whole thing so confusing!

    Not stupid. However, we don't have access to the plan information or what options you are comparing it against. Or even how you would buy it (options if you DIY are different compared to using an IFA - and by DIY I mean proper DIY providers and not things like the awful Virgin Stakeholder pension or robo-advisers that pretend they are cheap but are three times the cost of an IFA).

    I should also point out that your current employers scheme is highly unlikely to charging 1.01%. It may have done in the past but there is a cap of 0.75% on the default fund. That typically means all internal funds meet that cap and its only external funds that are higher cost.
    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.
  • Imelda
    Imelda Posts: 1,399
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    Thanks all.

    I think I will just leave it all be and keep putting money into the SL pot.

    Regarding the SL fees I am confused! The website says FMC 1.1% and additional expenses 0.0181%. I just know the fees seem a lot higher than those in my old Aviva (actually, ex Friends Life) pension.
    Saving for an early retirement!
  • Imelda
    Imelda Posts: 1,399
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    My employer offers no matching, no salary sacrifice.
    Saving for an early retirement!
  • AlanP_2
    AlanP_2 Posts: 3,250
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    Imelda wrote: »
    Thanks all.

    I think I will just leave it all be and keep putting money into the SL pot.

    Regarding the SL fees I am confused! The website says FMC 1.1% and additional expenses 0.0181%. I just know the fees seem a lot higher than those in my old Aviva (actually, ex Friends Life) pension.

    That would be the fee if you set up your own and used that Fund. A lot of employers have "special deals" where price is reduced because it is a "block booking" type scenario. You should be able to ask SL, always found them quite helpful.

    My wife has an SL scheme and charges are about 0.5% off "List Price".
  • cloud_dog
    cloud_dog Posts: 6,026
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    Imelda wrote: »
    I think I will just leave it all be and keep putting money into the SL pot.
    I think you should consider the access terms for the existing company SL scheme, i.e. when can you access it and what may your older self think about the ability to take a pension earlier than the scheme allows.

    Depending on what you think, this may steer you towards a separate pension of your own, accessible from age 55 (at the moment, touted to increase to 57 at some point).

    I think the main question is....Do you want at least the option of some flexibility as you get towards retirement age? (this all assumes the current Co. pensions are only accessible at NRA).
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • dunstonh
    dunstonh Posts: 116,038
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    Regarding the SL fees I am confused! The website says FMC 1.1% and additional expenses 0.0181%. I just know the fees seem a lot higher than those in my old Aviva (actually, ex Friends Life) pension.

    Is that the generic fund factsheet web page showing the default charge prior to adjustments (such as fund based discounts, employer negotiated terms and auto-enrolment cap)?

    Of is it a personalised information webpage stating your charges?
    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.
  • Imelda
    Imelda Posts: 1,399
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    dunstonh wrote: »
    Is that the generic fund factsheet web page showing the default charge prior to adjustments (such as fund based discounts, employer negotiated terms and auto-enrolment cap)?

    Of is it a personalised information webpage stating your charges?

    It is under the specific details of my plan when I log in to the SL site.

    My employer does the very bare minimum required by law. I very much doubt they negotiated any fees.

    Regarding the age at which we can (currently) access the pension funds does this depend on the plan? I have mine currently set to 60 (which is my aim and in reality will probably be closer to the government set age by the time I get there).

    Thank you all for your help, it is starting to become clearer!
    Saving for an early retirement!
  • dunstonh
    dunstonh Posts: 116,038
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    It is under the specific details of my plan when I log in to the SL site.

    I believe those links take you to the generic fund information. Much the same as they do on the adviser version. They dont state the charge you are actually paying.

    Especially as legislation requires the default (usually meaning internal funds) charging no more than 0.75%.

    I just did a pension this week with a fund charge of 0.05% but the default factsheet shows 1.00%.
    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.
  • Imelda
    Imelda Posts: 1,399
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    dunstonh wrote: »
    I believe those links take you to the generic fund information. Much the same as they do on the adviser version. They dont state the charge you are actually paying.

    Especially as legislation requires the default (usually meaning internal funds) charging no more than 0.75%.

    I just did a pension this week with a fund charge of 0.05% but the default factsheet shows 1.00%.

    Thank you - I shall delve further!
    Saving for an early retirement!
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