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Standard Life pension transfer penalty.Stay or go?
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spurn88
Posts: 4 Newbie
I will be 65 in 6years time.My Standard Life pension of £40,000 will incur a 10% penalty if i transfer it pros and cons please.
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Comments
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What kind of pension is this?RAC,EPP, S32, personal pension, stakeholder (unlikely)? Does it have any guarantees attached?Is there protected rights money in it?
You speak about transfer - do you actually want to
#Move it out of the SL With profits fund into other SL or external funds which will perform better, but with the pension wrapper still as is and subject to low charges?
#Move it to another provider, if so, which one, what funds and how much are the charges ?
#Take benefits from the pension by moving it to a SIPP and getting the 25% tax free cash, while leaving the rest of the money invested
#Take benefits as above, but also take a pension income from an annuity or income drawdown (aka USP)?Trying to keep it simple...0 -
spurn88 wrote:I will be 65 in 6years time.My Standard Life pension of £40,000 will incur a 10% penalty if i transfer it pros and cons please.
Are you unhappy with the company, or with Standard Life's performance?
What is your attitude towards investment risk?
What are your ultimate plans in retirement?
Do you want to transfer away from Standard Life completely, or just make an internal fund alteration? Standard Life has generally good performance across the board in their non With Profits fund, so perhaps you need to look at the aletrnatives open to you a bit more.
Making the decision to transfer is not easy- you have to get a projection of what Standard Life will give you at age 65 (based on the FUND value) and then compare it with another provider (based on the TRANSFER value). Then youu have to work out how much extra performance you need to make up the costs of the penalty, and any extra transfer charges that you may incur with the new provider.
Don't forget that you can shop around at retirement to get the best annuity for your money (of you decide to go down this route)I am an Independent Financial Adviser (IFA),but this site does not check my status as such, so you need to take my word for it. This signature is here as I follow MSE's code of conduct for IFAs. Anything I post on this forum is for discussion purposes only, and should not be construed as financial advice.0 -
It is very unusual for Standard Life plans to carry an actual transfer penalty. Are you sure its a transfer penalty or is it perhaps a martket value reduction?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.0
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