Take the money and run...or transfer my lump sum?

Ed_Kooper

Hi from a newbie. I'm a complete financial dunderhead and need some advice pretty urgently. I was made redundant at the end of last year and because I was in my company pension scheme for less than two years I have been given the option of either receiving a refund of my contributions (less tax) or transferring the money to another pension plan. I have until the end of next week to decide what to do otherwise I simply get the refund.

The refund payment I am due is roughly £5,000 or I could transfer £13,000 to another scheme. It sounds like a no-brainer - I should try and find a new pension plan, right? Or is it?
I sent an inquiry to an IFA about setting up a personal pension and was a bit surprised about the seemingly high charges involved. And then last night a friend was recommending I look into getting a SIPP (with HL). I really am fairly cluesless about the financial markets and don't feel comfortable with the thought of making many investment decisions. Any thoughts on the best and least hassle way forward for me would be very gratefully received.
Cheers,
Ed

dunstonh

I sent an inquiry to an IFA about setting up a personal pension and was a bit surprised about the seemingly high charges involved.

Occupational pension transfers are considered a high risk transaction and require a higher level of qualification than then norm. That is why its higher charged.

And then last night a friend was recommending I look into getting a SIPP (with HL).

SIPPs are typically an expensive option and designed to be used by the experienced investor who would utilise the features and options that a SIPP allows.

Have you checked to see if HL will accept a final salary scheme transfer into their SIPP without an IFA signing off on it first? (recent posts confirm they won't but in this case its with the refund/transfer period so they might)