Change Personal Pension to stakeholder?

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mic200202
mic200202 Posts: 171 Forumite
in Pensions, annuities & retirement planning
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.

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  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    mic200202 wrote: »
    .. but looks like they are charging a sizeable fee even though I want to keep this with L&G. Is this correct?


    What makes you think this?
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 116,469 Forumite
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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.
  • mic200202
    mic200202 Posts: 171 Forumite
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    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 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.
  • dunstonh
    dunstonh Posts: 116,469 Forumite
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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.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
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    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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