Transfer Values

Techno

Can anyone tell me why there is such a huge difference between the actual value of a pp and the tranfer value.
I am with Royal Scotish Assurance and you would think that between the fact they charge you every year and the difference on the bid/offer spread they would be making enough money out of me but no they also want nearly 15% of the fund back too!! - do all pp poviders do this and if so, it's no wonder people want to invest in SIPPs!!!!!

dunstonh

Can anyone tell me why there is such a huge difference between the actual value of a pp and the tranfer value.

Ask that question to Royal Scottish Assurance. The pension product itself doesnt have to have any charges and most modern personal pensions do not.

- do all pp poviders do this and if so, it's no wonder people want to invest in SIPPs!!!!!

SIPPs can actually have higher charges than PPs as well as lower in some circumstances and SIPPs can also make a number of charges which are not present on personal pensions. However, to answer your question, most modern personal pensions do not and most providers that are still open to new business do not charge or only make very small penalties on legacy pension business. Virtually all closed insurance companies make the charge.