Contracted out with Phoenix

Edale

I contracted out of Serps originally with Sun Alliance in the late 80s. It was with profits and by the time I contracted back in (mid 00s) had a transfer value of around £12k. It had a guaranteed annuity so I felt it best to leave it where it was. Phoenix now manage this and last year they consulted to remove the guarantee in exchange for an enhanced value, this was concluded in late 2009. The transfer value on the last statement I received in October 2010 was £35,557 (as at 5th April 2010) and I assume would be similar now as stock markets are at a similar level. Other figures from statement are as follows:
Date of birth: November 1968

Guaranteed basic sum assured: £56410
Existing bonus: £6309.29
New bonus: £31.44
Total bonuses££6340.73

Could anyone give me there thoughts on what I should do now that GAR has been removed and the value is not so trivial? I will see an IFA but would appreciate a number of opinions from my learned friends on here.

Thanks in advance.

dunstonh

Could anyone give me there thoughts on what I should do now,

Impossible to say without a proper analysis. The removal of the GAR certainly makes it more likely that an alternative option is better but without a software analysis, you are not going to know if that is the case or not and by how much.

Edale

Ok so I should consult an IFA I assume. How much should I expect this to cost?

dunstonh

so I should consult an IFA I assume.

Unless you have the skills, knowledge and software to DIY then yes.

How much should I expect this to cost?

£500 through to £2500 is the typical range depending on the type of adviser and service you employ them to do. £1000 most likely. (this assumes fee with commission rebated).

The differences will be that some IFAs focus their pricing and offering on high net worth whilst others focus on mid net worth. Your pension value, in isolation, is low value. Still within the range that many IFAs will offer services at a sensible value and cost to you. However, many will not be interested and will likely price themselves out on purpose.

Edale

I understand what you mean, £35K is a significant amount of money but in Pension terms is very small and uninteresting to any advisor. I think I might look at transferring it into a SIPP with Hargreaves Lansdown, that way there is only me to blame for it's performance. It is not a significant part of our retirement planning, my wife is a consultant in the NHS and even if and when they reduce the benefits from her FS scheme we should be well provided for in retirement as she has 20 years service already. I can therefore afford to have a bit of fun with this.:)

dunstonh

I think I might look at transferring it into a SIPP with Hargreaves Lansdown, that way there is only me to blame for it's performance.

Good DIY option but remember that HL keep the 0.5% IFA commission for themselves (as well as the platform commission of around 0.25%). So, make sure cost isnt the reason for choosing them. If you plan to play investing, then that should be your reason.