Moving a pension from one provider to another

sh856531

Hi everyone

I recently asked Scottish Equitable what would be involved in moving my existing pension from them to my Hargreaves lansdown account. Basically I don't like having to look in two different places and I think Scottish Equitables choice of funds is poor so I'm looking at moving it.

Anyway - I asked them a simple question. Are there any costs in moving. Unfortunately rather than answering that very simple question they sent me a letter 2 weeks later saying I need to get a financial adviser to fill in all the forms.

So - two questions - can anyone give some general advise on whether moving my pension from SE to HL will actually cost anything - and if so - what is the nature of those costs?

Secondly - why would I need a financial advisor to fill in some forms?

Is there a reason why I couldn't fill out the paperwork myself? Or is it more complex than I realise?

Many thanks in advance for any advice!

S

gadgetmind

Does the SE pension have any kind of guarantees attached? Some old pensions are worth far more than you might realise, and this is why they will tell you that you need advice. If the pension was started in the last few years, then this is unlikely.

If you do decide to transfer (and do read all the paperwork first!) then you simply start a new pension and ask your new provider to transfer the old one across. This is best done "in specie", which is where existing investments aren't sold and are just transferred, but this is also the most expensive.

Also be aware that HL refund zero trail in a SIPP, and make extra charges for holding shares (including ITs and REITs) and also for trackers, which can make other providers better for some people.

dunstonh

Basically I don't like having to look in two different places and I think Scottish Equitables choice of funds is poor so I'm looking at moving it.

In theory Aegon's range should be greater as most of their modern plans have SIPP functionality as well as offering a range of pension funds. A number of their older plans carry valuable guarantees which are worth far more than the tiny returns that go with it.

Secondly - why would I need a financial advisor to fill in some forms?

You dont. However, Aegon cannot answer questions which are placed as comment, opinion or advice. They can answer factual questions but your question was not one they could answer as they do not know the charges of the contract you are going into. So, they correctly told you that you need to use an adviser in that respect.

Is there a reason why I couldn't fill out the paperwork myself? Or is it more complex than I realise?

It isnt complex. However, if you cant tell the costs then you shouldnt be using a SIPP.

sh856531

Hi there

Thanks for your answers

Does the SE pension have any kind of guarantees attached? Some old pensions are worth far more than you might realise, and this is why they will tell you that you need advice. If the pension was started in the last few years, then this is unlikely.

I don't know of any particular gaurantee's of anything. What does it guarantee? - Is it a particular return or something like that? The pension was started 5 years ago and is currently worth about 10K - so very small as I am still young.

However, Aegon cannot answer questions which are placed as comment, opinion or advice. They can answer factual questions but your question was not one they could answer as they do not know the charges of the contract you are going into. So, they correctly told you that you need to use an adviser in that respect.

To be fair my OP was a little ambiguous. To be clear - I didn't ask them general questions about what the total process might cost - I asked them explicitly what *they* would charge me. I didn't ask them for an opinion on it - just an exact and factual statement of what *their* charges would be - if any. I'm in the process of getting similar information from H-L and canvassing opinions on whether what I'm thinking about is a good idea

It isnt complex. However, if you cant tell the costs then you shouldnt be using a SIPP.

Well - the only reason why I can't tell the costs at the moment is because Scottish Equitable have been unable to tell me whether they will charge me anything to do it.

I'm still waiting to hear back from H-L but I've always found them quite forth coming with helpful and clear information

Thanks again for your help!

S

gadgetmind

sh856531 wrote: »

I don't know of any particular gaurantee's of anything. What does it guarantee? - Is it a particular return or something like that?

There used to be guaranteed annuity rates, guaranteed minimum pensions, and all kinds of other nice stuff, and there can also be penalties and charges for ending a pension early. It's worth reading the paperwork and also asking direct questions of your current provider.