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  • FIRST POST
    • fred246
    • By fred246 3rd Jan 16, 11:15 AM
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    fred246
    Transfer FSAVC to SIPP?
    • #1
    • 3rd Jan 16, 11:15 AM
    Transfer FSAVC to SIPP? 3rd Jan 16 at 11:15 AM
    In the 1990s I was sold a FSAVC by a financial adviser. Soon after I took a large mortgage and she told me to stop paying into it. I told her a pension was for life and carried on. A couple of years later she said STOP don't you understand it's RUBBISH. I am now about 10 years from retirement. It is from Standard Life and has £30K in it 60% in Pension With Profits Fund and 40% in Standard Life Managed Pension Fund. I asked another financial adviser to look at it but she said she'd charge me so much I would lose out. I can't find any mention of charges in the documentation. There is a 'with profits' guarantee but I don't think it's very valuable. Would it make sense to transfer it into a SIPP?
    Last edited by fred246; 03-01-2016 at 11:16 AM. Reason: mistake
Page 1
    • dunstonh
    • By dunstonh 3rd Jan 16, 11:52 AM
    • 88,148 Posts
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    dunstonh
    • #2
    • 3rd Jan 16, 11:52 AM
    • #2
    • 3rd Jan 16, 11:52 AM
    here is a 'with profits' guarantee but I don't think it's very valuable.
    On Pre 2001 cases a number of Std Life WP fund versions had a minimum growth rate of 4% before charges.

    I asked another financial adviser to look at it but she said she'd charge me so much I would lose out. I
    Was it an IFA or FA? Many FAs are not allowed to do pension switches. And may come out with a different line than say they are not allowed to do them. If yours is on the normal SL pricing for that period and you went on transactional basis with the IFA, then I would expect a breakeven point of around 4-5 years (i.e. the cost of advice to transfer and modern lower cost priced product compared to no cost to transfer and staying with higher price). If yours was set up with discounted charging then it may not be viable to switch.

    Would it make sense to transfer it into a SIPP?
    Not enough to go on. You need to know the difference in charges compared to what you would invest in within the SIPP. Generically, SIPPs are the most expensive option which is geared towards the more experienced investor looking to invest in assets not available on stakeholder or personal pensions. There are exceptions to that nowadays with some targeting the lower cost market. A personal pension is typically the more suitable option for most people.

    You havent mentioned why want to use a SIPP rather than stakeholder or personal pension. I can understand not using stakeholder (as personal pensions are likely to be cheaper with your fund value). However, why not personal pensions?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • fred246
    • By fred246 3rd Jan 16, 2:31 PM
    • 778 Posts
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    fred246
    • #3
    • 3rd Jan 16, 2:31 PM
    • #3
    • 3rd Jan 16, 2:31 PM
    It's hard to imagine putting my FSAVC into a fund that would perform as badly as the one it's in. I was looking at transferring it into a SIPP with Halifax Sharedealing, Cavendish Online or Bestinvest. Are there personal pension providers with lower charges than these?
    • dunstonh
    • By dunstonh 3rd Jan 16, 2:39 PM
    • 88,148 Posts
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    dunstonh
    • #4
    • 3rd Jan 16, 2:39 PM
    • #4
    • 3rd Jan 16, 2:39 PM
    It's hard to imagine putting my FSAVC into a fund that would perform as badly as the one it's in.
    The WP fund has costly guarantees and the guarantees are not that valuable. It was never designed to be a top performer. More a steady Eddie low risk option. The managed pension fund will aim to be average. Neither are bad funds in relation to what they are set up to achieve. The issue is whether you fit them (or they fit you).

    I was looking at transferring it into a SIPP with Halifax Sharedealing, Cavendish Online or Bestinvest. Are there personal pension providers with lower charges than these?
    Depends on what you are investing in within the SIPP.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • fred246
    • By fred246 3rd Jan 16, 2:57 PM
    • 778 Posts
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    fred246
    • #5
    • 3rd Jan 16, 2:57 PM
    • #5
    • 3rd Jan 16, 2:57 PM
    I was planning on investing in low cost tracker funds within the SIPP. Low cost funds in a low cost wrapper.
    • frugal90
    • By frugal90 3rd Jan 16, 3:04 PM
    • 223 Posts
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    frugal90
    • #6
    • 3rd Jan 16, 3:04 PM
    • #6
    • 3rd Jan 16, 3:04 PM
    I managed to move a teachers avc with prudential into my sipp with interactive investor- took a few weeks but just contacted both parties and filled in the relevant forms
    • fred246
    • By fred246 3rd Jan 16, 3:21 PM
    • 778 Posts
    • 432 Thanks
    fred246
    • #7
    • 3rd Jan 16, 3:21 PM
    • #7
    • 3rd Jan 16, 3:21 PM
    I know I can do the transfer and I understand that the tracker fund could perform badly. Are there any other pitfalls? I was always under the impression that its performance was due to people having their fingers in the pot. The initial adviser took the whole first years contribution and I still have some adviser telling me she receives commission from the pension. Standard Life don't tell me what the charges are but I guess they are removed from the pension fund.
    • zagfles
    • By zagfles 3rd Jan 16, 3:27 PM
    • 11,861 Posts
    • 9,811 Thanks
    zagfles
    • #8
    • 3rd Jan 16, 3:27 PM
    • #8
    • 3rd Jan 16, 3:27 PM
    I know I can do the transfer and I understand that the tracker fund could perform badly. Are there any other pitfalls? I was always under the impression that its performance was due to people having their fingers in the pot. The initial adviser took the whole first years contribution and I still have some adviser telling me she receives commission from the pension. Standard Life don't tell me what the charges are but I guess they are removed from the pension fund.
    Originally posted by fred246
    Yes that's typical of WP type funds, and endowments, which is why they were pushed so hard in the 80's and 90's.
    • dunstonh
    • By dunstonh 3rd Jan 16, 7:35 PM
    • 88,148 Posts
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    dunstonh
    • #9
    • 3rd Jan 16, 7:35 PM
    • #9
    • 3rd Jan 16, 7:35 PM
    I was planning on investing in low cost tracker funds within the SIPP. Low cost funds in a low cost wrapper.
    If you pick the right SIPP it will be broadly similar to personal pensions offering trackers. If you pick the wrong one then it will be more (although that could equally apply to picking the wrong personal pension provider too).

    The initial adviser took the whole first years contribution and I still have some adviser telling me she receives commission from the pension. Standard Life don't tell me what the charges are but I guess they are removed from the pension fund.
    Standard life publish their charges and will give a policy information document on request which explicitly states the fund charges.

    Some of the Std Life PPPs have a good range of low cost trackers.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • shrrtt
    • By shrrtt 10th Jun 17, 7:22 AM
    • 1 Posts
    • 0 Thanks
    shrrtt
    If you haven't got an answer, AJ Bell is an excellent platform to locate your funds or shares
    • AnotherJoe
    • By AnotherJoe 10th Jun 17, 11:02 AM
    • 6,546 Posts
    • 6,975 Thanks
    AnotherJoe
    If you haven't got an answer, AJ Bell is an excellent platform to locate your funds or shares
    Originally posted by shrrtt
    What, after 18 months?!
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