Emergency pension transfer

d4v34

Hi all,
I have about £80k in a with profits pension and I'd like to transfer this out ASAP as a large proportion of it is a not guaranteed bonus and I don't want to run the risk of losing it.

I'm looking to land it somewhere even temporarily while I get upto speed with the current pension situation and also I understand there are some reforms looming in the not too distant future.
I'm also looking to make a monthly employers contribution of £2k per month and an annual personal contribution of £10k

I've read a couple of posts (I need to read a lot more) regarding using Cavendish to buy commission free pensions e.g Aviva stakeholder, Skandia etc and also talk of investing using Fedelity Fund Network via Cavendish and also mentioned was buying a SIPP using Hargreaves Lansdown.

Does anyone have any advice on buying these and particularly any pitfalls or can point to any useful information and how easy is it to transfer out of these types of pensions?

Many thanks
Dave

dunstonh

I have about £80k in a with profits pension and I'd like to transfer this out ASAP as a large proportion of it is a not guaranteed bonus and I don't want to run the risk of losing it.

Can you do a fund switch?

I'm looking to land it somewhere even temporarily while I get upto speed with the current pension situation and also I understand there are some reforms looming in the not too distant future.

Nothing much that will affect pensions. Most are compliant or virtually compliant with the changes already.

Does anyone have any advice on buying these and particularly any pitfalls or can point to any useful information and how easy is it to transfer out of these types of pensions?

Your contribution/value is certainly PPP/SIPP territory. A stakeholder would be a bit on the basic side and probably an expensive option (compared to PPP, not to SIPP). Do you know how you want to invest? At the moment you seem to be looking at pension type and provider but not where and how you want to invest. It should be the other way around.

atush

First of all, any MVAs to get out of your current pension? And GARs?

Does your employer currently pay into your pension, or are you going on the new changes when they will have to?

d4v34

Hi dunstonh,

dunstonh wrote: »

Can you do a fund switch?

That's a good point and I'll be talking to them tomorrow about this. I'm hoping they wont charge me all the setup fees again.

dunstonh wrote: »

Nothing much that will affect pensions. Most are compliant or virtually compliant with the changes already

That's good to hear.

dunstonh wrote: »

Your contribution/value is certainly PPP/SIPP territory. A stakeholder would be a bit on the basic side and probably an expensive option (compared to PPP, not to SIPP). Do you know how you want to invest? At the moment you seem to be looking at pension type and provider but not where and how you want to invest. It should be the other way around.

Point taken, and it is something I'm aware of, it's really that I want to move it as quickly as possible for the least cost particularly if there's a substantial cost involved in transferring the pension internally. I can always move it again afterwards.

Thanks for your help

Dave

d4v34

atush wrote: »

First of all, any MVAs to get out of your current pension? And GARs?

Does your employer currently pay into your pension, or are you going on the new changes when they will have to?

Hi atush,
I'll be starting the payments once I've transferred the pension.

I'm not sure what MVA or GAR's are but luckily there are no transfer or early termination penalties if that is what you are referring to.

Many thanks
Dave

dunstonh

That's a good point and I'll be talking to them tomorrow about this. I'm hoping they wont charge me all the setup fees again.

Most personal pensions have free switches. Older ones may limit the switch to 1-5 a year or very old ones make a charge of £25 but that would be a lot easier and quicker than doing a transfer.

atush

MVA is Market Value adjustment for leaving a with-profits plan. You say yours doens't have this- great!

GAR is guaranteed annuity rate, if there is one it is bound to be streets ahead of what you can get elsewhere so look into it. It is worth its weight in gold these days (and is what took the mighty Equitable Life down).

d4v34

atush wrote: »

MVA is Market Value adjustment for leaving a with-profits plan. You say yours doens't have this- great!

GAR is guaranteed annuity rate, if there is one it is bound to be streets ahead of what you can get elsewhere so look into it. It is worth its weight in gold these days (and is what took the mighty Equitable Life down).

Hi Atush, ah I see, my pension company calls it a Market Value Reduction and there's a small one added recently.
I doubt there's a GAR on the pension but I'll be sure to ask before I move. Thanks for the heads up.

Cheers
Dave