Would It be better to move this SHP to a SIPP?

tillycat123

I know I need to find an IFA as I feel totally bewildered by pensions, no matter how much I try and read up on them, but before I do can I run this past you.

I have a Standard Life Managed Pension Fund that is dropping like a lead balloon again. Pot stood at 96k July 11, today 84K. This was a pension I took with me after leaving a previous employer, I've continued to pay just £80 a month in for the past 3 years as I had to take my new employers pension which is with L&G.

Would a SIPP with the help of an IFA be the way for me to go with this pot or is the pot too small?

For the last 3 years the L&G SHP I have now is set to the default 'lazy persons fund' This has not lost money. Contributions made £33k fund standing at £36K. Betweekn myself and employer there is just over £1000 now a month going in. I've looked at switching to other funds that I'm allowed to and I am still clueless. Should I just be thankful this one at the moment is pretty even or could I have chosen different funds within the scheme that could have grown the pot much bigger over the past 3 years perhaps?

I also have a smaller pot with L&G from years back. From a period of contracting out with a value of £17k.

I've been asking friends if they have an IFA and none of them do, so finding a recommended one is looking unlikely.

I'm 40 and a higher rate tax payer.

Any pointers in the right direction much appreciated.

dunstonh

Would a SIPP with the help of an IFA be the way for me to go with this pot or is the pot too small?

If you put the same Std Life fund in a SIPP you would get the same return (or any comparable fund or asset mix).

For the last 3 years the L&G SHP I have now is set to the default 'lazy persons fund' This has not lost money. Contributions made £33k fund standing at £36K.

That is because 2 of the 3 years have been excellent and the last 12 months are virtually breakeven. The monthly payments certainly help in periods of volatility.

I've been asking friends if they have an IFA and none of them do, so finding a recommended one is looking unlikely.

IFAs handle around 3/4 of pension transactions. However, it is often hard to find people that have used an IFA as IFAs do tend to focus on those with a bit more money. Your pension funds, in total, are in IFA territory.

However, bringing it back to SIPP, PPP and SHP, your risk profile wont change because of the type of pension you use. The returns wont change if you look at asset classes in isolation as UK equity is still UK equity whether you use a SHP, PPP or SIPP. All that happens with PPPs and SIPPs is that they give greater investment choice which can allow greater fine tuning or options that you may prefer compared to a SHP.

CannySaver_2

Hi

A few thoughts for you:

1. You are attacking this the wrong way round by looking at the product first i.e. SIPP v SHP, you are letting the wrapper tail wag the investment dog.

2. Think about what you are wanting to invest in, do you just want a reallocation of funds? Do you only want to invest in funds? If so then look at whether the existing plan offers funds you are happy to invest in, if not then consider the merits of a Personal Pension v SIPP i.e. which is the cheapest route for accessing the funds you want and then make your decision accordingly

3. If however you want to invest in a wider range of assets e.g. directly held shares, EFTs etc then you will need a SIPP. Worth doing a bit of your own research before you see an IFA, this site should help you http://www.!!!!!!.uk/sipp-zone/ it carries some great information on about 40 SIPPs

4. I'm sure you will be able to find an IFA who would be happy to look at your Standard Life plan, £80k is a decent amount of money. If you can't find an IFA through recommendation then use www.unbiased.co.uk to narrow down your choice and maybe visit a couple to see who you feel most comfortable with

I hope this helps

The Canny Saver