Transfer exsiting personal pension into company scheme?

genie_g

My husband is 51 and currently a member of a defined contributions company pension scheme with a blue chip global corporation. He contributes 5% of his salary and they contribute 10%.

He also has a Skandia FSAVC (which I am told is effectively a personal pension) which is paid up and has a current transfer value of £43K. We want to move this money because of punitive charges.

His company pension scheme currently has a 0.085% Annual Mgt Charge on a 'Lifecycle' basis which means finds are switched automatically as Target Retirement Age is approached. Alternatively there is a choice of the following Legal & General funds on a 'Freestyle' basis i.e. self selection:

UK Equity Index Fund (0.080% AMC)
World (ex-UK) Developed Equity Fund (0.085%)
All World Equity Fund (0.105%)
World Emerging Markets Equity Fund (0.250%)
Global Equity Fixed Weights (60:40) Index Fund (0.085%)
Global Equity (70:30) Index Fund (0.085%)
Growth Fund (0.118%)
Growth Plus Fund (0.138%)
Consensus Index Fund (0.085%)
Over 15 year Gilts Index Fund (0.075%)
Index Linked Gilts Fund (0.075%)
Investment Grade Corporate Bond - All Stocks Index Fund (0.075%)
Emerging Markets Debt Index Fund (0.200%)
Pre-retirement Bond Fund (0.075%)
Annuity Protection Fund (0.075%)
The Money Fund (0.075%)

I have been told that these charges are low. Therefore would it be a good idea to transfer the £43K into his company scheme rather than into another personal pension?

His current plan is to retire at 65 at the latest, hopefully sooner but I am younger than he is and we have three children aged 10 years and under (second family for him) so that may not be possible.

He also has a couple of defined benefit pensions which we are of course leaving where they are.

Any advice/thoughts would be gratefully received.

Thanks

jem16

genie_g wrote: »

I have been told that these charges are low. Therefore would it be a good idea to transfer the £43K into his company scheme rather than into another personal pension?

Does the company accept transfers into their scheme? Not all do.

If they do what age is he allowed to access the scheme?

genie_g

Thanks for your reply.

jem16 wrote: »

Does the company accept transfers into their scheme? Not all do.

Yes, they do. We've enquired and they have replied with illiustrations and the forms to complete if we wish to go ahead.

jem16 wrote: »

If they do what age is he allowed to access the scheme?

Age 55 at the earliest. His current TRD on the scheme is 63.

jem16

genie_g wrote: »

Yes, they do. We've enquired and they have replied with illiustrations and the forms to complete if we wish to go ahead.

You now need to weigh up the charges against the fund choice and decide if the Skandia pension offers more scope for growth and what it would need to outweigh the low cost of the company pension.

Is there a company pension IFA who would be able to help?

jamesd

The investment choice isn't particularly impressive if you know how to use a broader range of investments. It does have just about enough though. For a 51 year old these are the ones that I think look most interesting:

World (ex-UK) Developed Equity Fund (0.085%)
All World Equity Fund (0.105%)
World Emerging Markets Equity Fund (0.250%)

genie_g

jem16 wrote: »

You now need to weigh up the charges against the fund choice and decide if the Skandia pension offers more scope for growth and what it would need to outweigh the low cost of the company pension.?

As the Skandia pension is paid up there are punitive charges I don't know whether the could 're-activate' it and start paying in again. We could of course move the funds elsewhere anyway if not to the company scheme.

jem16 wrote: »

Is there a company pension IFA who would be able to help?

There is not an adviser associated with the company scheme if that is what you are referring to.

mark55man

I was in a similar - not identical position, in that I had a SERPS contracted out cheque to invest.

My decision was to keep it separate and use a low cost SIPP provider (of which you will find many discussions on here as to which is best). I made this decision in that I try and not put too many eggs in one basket - even one that looks strong, and my colleague at work had also made the same decision after much investigating.

Whether youwould be better in a SIPP or another Personal Pension vehicle is a separate question which others are better placed to answer

genie_g

jamesd wrote: »

The investment choice isn't particularly impressive if you know how to use a broader range of investments. It does have just about enough though. For a 51 year old these are the ones that I think look most interesting:

World (ex-UK) Developed Equity Fund (0.085%)
All World Equity Fund (0.105%)
World Emerging Markets Equity Fund (0.250%)

Thanks jamesd.

What's the reasoning behind this - just so I can understand and learn?

I'm a deferred member of the same scheme, aged 46 and with a fund value of about £31K (with about £67K elsewhere and not currently contributing to a pension as v.low earnings - hopefully I will ). I was going to start another thread on what my fund choices should be.