Barclays Life Assurance

ifonlyiwas18

I was a good girl and took out a personal pension was I started work. I had to stop contributions when made redundant and was told they weren't accepting money in when I found a new job so I've just left it sitting there for the past 11 years. The pension is with Barclays Life Assurance which now seems to be owned by Admin Re UK Limited, a subsidiary of Swiss Reinsurance Company.

Spoke to IFA about it and he recommended moving it but will charge 5% of the non-contracted out contributions (£1,200). The transfer value is only £27k (was £24k in October 2009).

As I'm 42, I'm worried that the fund won't recover the 5% fee (and 1% annual charge) by the time I retire. Ever the sceptic I'd really appreciate a second opinion of 1) the chance that Admin Re UK will actually work for my little pension pot rather than let it rot in non-managed corner.
2) Should I be paying such a big chunk of my small pension contributions to transfer it elsewhere?

Thank you for any help.

dunstonh

As I'm 42, I'm worried that the fund won't recover the 5% fee (and 1% annual charge) by the time I retire.

The IFA has to do a cost analysis. Normally, the purpose is to see where the new pension comes out against the old one. My experience is that Barclays personal pensions are pretty easily beaten by modern plans.

Ever the sceptic I'd really appreciate a second opinion of 1) the chance that Admin Re UK will actually work for my little pension pot rather than let it rot in non-managed corner.

Depends on the funds but generically there is no reason it wouldnt.

2) Should I be paying such a big chunk of my small pension contributions to transfer it elsewhere?

If the alternative is cheaper then yes. Ask the IFA for the research showing the figures.

Loughton_Monkey

When Barclays Life were part of Barclays Bank, the fund managers were about the poorest you can get in the industry, and I cannot believe the 'new' ones could possibly be worse.

I think it a bit 'harsh' to say it will be 'non-managed' because your money will certainly be in a fund. Find out what it (they) is (are) and look them up on Trustnet for performance against other similar funds, and maybe consider switching - although they are likely to allow you to do this once a year only without charge.

As for someone charging 5% up front fee to move it somewhere else, then they are simply 'having a laugh'.

rabbitmumu

OM Goodness !! I am not even aware there are funds that charge 5% upfront fees!!! Is that an admin fee for the adviser? or as a penalty for the old fund? or acceptance fee for the new fund?????

Loughton_Monkey

rabbitmumu wrote: »

OM Goodness !! I am not even aware there are funds that charge 5% upfront fees!!! Is that an admin fee for the adviser? or as a penalty for the old fund? or acceptance fee for the new fund?????

I guess it could be an old Pension Uit Trust with a 5% bid/offer spread and the IFA is getting a commission. But I had inferred that the OP was paying an IFA £1,200 to set up a new pension and transfer the £27K into it.

tom8nuge

great post. I like it

rabbitmumu

Purely guess work: How often would they tell you what the bid-offer spread is? ... so it's more likely to be the latter which is some kind of fee .. if that's the case then it would be ridiculously insane!

dunstonh

It sounds like the advice charge. Most pensions allow an advice charge to be added. Taking 5% and rebating trail (for a transactional client) could result in a very cheap pension. 5% on a high fund value could seem expensive but on a small fund value like this, the monetary value is in line with what you would expect fee based advice to be.