should i transfer into a SIPP?

bellydancer_2 · 8 March 2006 at 12:52PM

I have a pension pot worth £130K with Scottish Life, should I transfer it into a SIPP?
Will Scottish Life charge me to take it out? How much approx?
Who should I use for the transfer? Hargreaves Lansdown? Sippdeal? anyone else?
I'm 53 and not thinking of using my pension till 60, I am no longer paying anything into it as I got my fingers badly burnt with Equitable Life!
any help and advice would be good

EdInvestor · 8 March 2006 at 1:28PM

Hi Bellydancer

Is your pension invested in the Scottish Life With-profits fund?

If so, first thing to do is to ask them if it has any valuable guarantees attached to it ( such as guaranteed annuity rates). If not, no problem.If it does, find out all info about them as they might mean you should stay.

Step 2 is to ask for a "transfer value" and see how this compares with the current value, which should show you if they will charge you a penalty to leave and how much.This also needs taking into consideration.

If it's not in the WP fund, ignore the above and tell us the answer to the following questions:

1.What do you want to invest the money in in future - eg shares, funds, gilts ?

2. What charges are you paying now at Scottish Life?

and 3. When you retire, do you think you will use the fund to buy an annuity ( which gives you a guaranteed income for life) , or keep it invested through an income drawdown plan and take an income from it - this enables your fund and income to grow, rather than be overtaken by inflation, but does involve some risk.[No need to be definite about this,just give an idea if you can.]

dunstonh · 8 March 2006 at 3:25PM

Pal, if reading this, can you merge this thread with the one in Savings and Investments. I answered on that one and it's pointless having two threads running.