Should I move my work pension to a sipp?

EdInvestor

You are 43 and have a guaranteed pension which will rise to match inflation up to 5% average p.a until you retire in 25 years' time.It will presumably offer a death benefit/spouse pension should you die in the meantime.

If you dumped your guarantee now and moved to a SIPP and then died you say the improvement in the post death situation would be the main benefit.

This does not seem to to me to be a good enough reason to make this change unless

1.You are a skilled investor keen to have access to the money and confident you can exceed the critical yield.
2.There is a a clear possibility you will need to access income from the SIPP over the next say 10 years
3.The status of the existing pension is questionable (unlikely given the PPF and its size)
4.The window of opportunity to take a transfer value may not remain open
5.You are in poor health and might die before you retire
6.Your spouse is keen to take this route (if so, why?)

Does any of thios apply?

If not, why not leave it till later?

It would inspire confidence about your ability to handle this change if you were happy about self selecting your SIPP at H-L.But at the moment, given a lack of urgency on need for the moeny and your age, it seems more sensible to leave it where it is.

Almost certainly both the f/s pension company and the IFA are making unnecessary gains out of you.

jamesd

EdInvestor, seems you're not paying sufficient attention to the mere 5.8% critical yield. An IFA managed fund should have no trouble at all beating that.

EdInvestor

jamesd wrote: »

EdInvestor, seems you're not paying sufficient attention to the mere 5.8% critical yield. An IFA managed fund should have no trouble at all beating that.

I rather think Standard Life will do its best to make that a complacent judgment.:cool:

In any case all this says is that it is probably reasonably easy for an investor to cover the guarantee in this case.But why should he bother to do this work if it's already being done for nothing, he's young and he doesn't need the money?

IFAs shouldn't assume it the job of an investor to provide them with easy job opportunities.

sabretoothtigger

Isnt it possible to hold more then one pension. Setup the SIPP and continue the one you already have, decide later which you prefer after perhaps running both equally for a while.

Personally I think I'd stay put as its too easy to mess things up and 5.8 doesnt sound that awful to me. 7% every year over 10 years means the fund size doubles, in my book thats great so 5.8 isnt bad imo. Its consistency which counts most

I say that as a layman though. I think the Fee based IFA thing is a no brainer and might even become law soon I think I remember reading

jamesd

EdInvestor wrote: »

In any case all this says is that it is probably reasonably easy for an investor to cover the guarantee in this case.But why should he bother to do this work if it's already being done for nothing, he's young and he doesn't need the money?

Because this is retirement planning and it'll probably provide more money for retirement as well as the option to retire earlier.

EdInvestor wrote: »

IFAs shouldn't assume it the job of an investor to provide them with easy job opportunities.

It's the employer that has provides this opportunity with the low critical yield. That an IFA instead of whoever the employer pays will make money from it isn't sufficient reason to discourage someone from doing something that they are likely to benefit from.

chancha

EdInvestor wrote: »

You are 43 and have a guaranteed pension which will rise to match inflation up to 5% average p.a until you retire in 25 years' time.It will presumably offer a death benefit/spouse pension should you die in the meantime.

If you dumped your guarantee now and moved to a SIPP and then died you say the improvement in the post death situation would be the main benefit.

This does not seem to to me to be a good enough reason to make this change unless

1.You are a skilled investor keen to have access to the money and confident you can exceed the critical yield.
2.There is a a clear possibility you will need to access income from the SIPP over the next say 10 years
3.The status of the existing pension is questionable (unlikely given the PPF and its size)
4.The window of opportunity to take a transfer value may not remain open
5.You are in poor health and might die before you retire
6.Your spouse is keen to take this route (if so, why?)

Does any of thios apply?

If not, why not leave it till later?

It would inspire confidence about your ability to handle this change if you were happy about self selecting your SIPP at H-L.But at the moment, given a lack of urgency on need for the moeny and your age, it seems more sensible to leave it where it is.

Almost certainly both the f/s pension company and the IFA are making unnecessary gains out of you.

thanks ed, after much thought I've decded to keep as is. I will now take out a seperate sipp from now on and take my chances with that....