serps pension with scottish widows with profits

teddyco

jamesd,

I have been reading your information and wanted to also ask about Scottish Widows? I have been speaking with a rep. at Hargreaves Lans., about moving my wife's personal pension that is currently held with Prudential.

She has a pension that is protected rights around £15,000, hence it doesn't qualify for a SIPPS with Hargreaves.

This individual has suggested that I move the money into the Personal Pension that they offer with Scottish Widows. Although this pension plan doesn't offer the same flexibility as the SIPP, it does have a range of approximately 80 funds; including a selection of funds managed by external fund managers.

He is offering me a discounted annual management charge for the plan of just 0.78%.

I assume that I can pick and choose the funds to move the money once I am signed up? What things do I look for in their selection of funds to make a selection of where to keep the money?

Is Scottish Widows Personal Pension funds even worth considering? I know they are discounted through Hargreaves, but you get what you pay for in this game, and maybe I do need to get a fund, pay the commission and let the experts manage it the way it should be?

Any comments welcome!

EdInvestor

I have been reading your information and wanted to also ask about Scottish Widows? I have been speaking with a rep. at Hargreaves Lans., about moving my wife's personal pension that is currently held with Prudential.

Have you checked what fund choice is available at the Prudential? Do they offer any external funds?It may be simpler ( and cheaper) just to switch funds at the existing company - but this will not generate any commissions for an advisor .

dunstonh

Scot Widows full retail PPP has very good fund range for a PPP. You can access the Euro Real Estate fund cheaper than the UT and of course you have the excellent SW Property fund in there.

Most of Prus pensions do not carry unit linked funds but some do so it is worth checking. However, the fund range of those that do is not as comprehensive as SW and not as cheap in most cases.

but this will not generate any commissions for an advisor .

So what if it does? I know dont do it and stick with a worse product so the adviser doesnt earn anything.

God forbid someone being paid for doing their job.

EdInvestor

God forbid someone being paid for doing their job.

No objection to that, but why pay for unnecessary work? If the same or similar funds are already available at the Pru, there is no reason to transfer, you can just switch.Equally, if the Pru's choice is mediocre, a transfer may be indicated.

But note the advisor does not seem to be suggesting any checks are made at the Pru. I think it's fair to ask the question, why not?And the answer is usually fairly obvious, unfortunately.

It's not the investor's fault if the system is set up so it doesn't profit the advisor to operate in the interests of the client - and I make no apology for pointing this out when it seems to be the case.

dunstonh

But note the advisor does not seem to be suggesting any checks are made at the Pru. I think it's fair to ask the question, why not?And the answer is usually fairly obvious, unfortunately.

The adviser is the one that makes the checks unless its execution only. Information about fund availability is one of the quesions you ask the provider when you get values etc. There is nothing to suggest that hasnt been done. Although the discount pricing suggests it isnt a full advice case.

jamesd

teddyco, Scottish Widows as a holder for protected rights and a HL SIPP looks like a reasonable option to me. From the pricing the SW pension is probably being sold execution only and she would need to manage the fund choices just as she will in the SIPP part. Are they asking for an initial cash payment as well as the reduced AMC?

Worth noting dunstonh's comment about what the SW pension does well and using that as part of her asset allocation for that type of investment. Also worth noting what dunstonh said about some things being cheaper in the pension than the unit trust - worth checking once she's decided what she wants to invest in, since it might as well be purchased as efficiently as possible.

There's a significant chance that I'll be doing exactly this myself, at least for a while.