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Change Personal Pension to stakeholder?
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mic200202
Posts: 171 Forumite
Hi Pension gurus, I have an L&G Personal Pension No1. I asked L&G could I change this to a stakeholder (to get the benefit of lower fees).They sent me a Pension transfer request, but looks like they are charging a sizeable fee even though I want to keep this with L&G. Is this correct?
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as advice.0
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I asked L&G could I change this to a stakeholder (to get the benefit of lower fees).
L&G's personal pension has the same charges as their stakeholder pension when using internal/stakeholder funds.but looks like they are charging a sizeable fee
There are no initial charges on L&Gs new contracts. Just the usual annual management charges.
However, you reasons for doing this transaction seem flawed. Personal pensions can be cheaper than stakeholder. Stakeholder is just a defined charging process. It doesnt mean its the cheapest. The L&G PPP is better than the L&G stakeholder. So, asking to downgrade your product doesnt seem logical.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.0 -
Thanks for that .L&G sent a statement with an total exit fee charge of approx 16% of the fund value.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as advice.0
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So, its the old contract that has the charge, not the new ones.
How much does the new contract cost over the remaining term compared to the old one? Is a charge to exit the old contract recovered in lower ongoing 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.0 -
What choice of funds do you have in the existing pension? Is it very poor or much the same as the stakeholder ?
What annual charges are you paying in the existing pension?Trying to keep it simple...
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