Transfer it or leave it?

Peartree

In 1987, in my first job, I contracted out of SERPS into a group scheme for the employees of the company I worked for at the time which was set up with Provident Mutual. The scheme was described as a Protected Rights Investment Account. Over the years, that has moved to Norwich Union and then Aviva and on the latest documentation it still described as a Group Protected Rights Investment Account. The investment fund is Aviva Managed (PM) Pension Non Chargeable Series 01.

Since 1997, I have been in an occupational pension scheme – the LGPS and no further payments went into the other scheme. The value in the Aviva scheme is around £26,000 at this point. I appear to be paying around £30 a year for administration.

I have been thinking of transferring this to a SIPP, probably with Hargreaves Lansdown where I’ve got other money invested in funds and shares through ISAs.

I understand I can transfer a ”protected rights pensions accrued from contracting out of State Second Pension or SERPS” to a SIPP but wondered what opinions were about whether, in this case, it would be a good idea and, particularly, if I would be losing any benefits associated with the scheme I’m already in.

dunstonh

The value in the Aviva scheme is around £26,000 at this point. I appear to be paying around £30 a year for administration.

That makes it very cheap then.

I have been thinking of transferring this to a SIPP, probably with Hargreaves Lansdown where I’ve got other money invested in funds and shares through ISAs.

which will make it very expensive.

jamesd

You'd have to contact Aviva to find out about benefits. Ask about guaranteed annuity rate in particular.

A transfer is only going to be worth it if you think that you can invest and make more than you're making now with the money after the higher costs - around 0.75% a year of the fund management charges for a 1.5% annual charge managed fund at HL goes to HL.

If you have over say £50,000 total you might do better with a discount reseller of say the Skandia pension and ISA. Not suitable for share or investment trust investing. Quite a few of those resellers on the net.

From April 2012 the difference between protected rights and other pension contributions goes away and it's all just pension money.