PP transfer to SIPP

srcandas

I'm about to transfer a Aegon PP to a HL SIPP.

I asked in a previous thread if I could get a confirmed evaluation prior to transfer as my Aegon has an element of final bonus. The final bonus varies greatly over time but is always only an estimate and subject to variation. To be fair to Aegon they offer that the MVR is currently less than £3 but again subject to change.

As I had no replies I imagined the answer was no or very few do this. But just in case anyone has any thoughts or is interested for themselves.

• HL say I can complete the application form
• They will approach Aegon and get a final evaluation
• I then have to sign this off before anything will happen.

So if the final bonus is greatly reduced or other unforeseen reductions are applied I can reconsider my options.

If anyone thinks I've got it wrong please do shout

:beer:.

soperman

If you are happy with the current WP value, you could switch it to a cash fund whilst the transfer is being sorted.

Debt_Free_Chick

But will Aegon then pay the amount you sign off on? Or will the final figure be recalculated on the day it's paid?

Do you know what impacts the MVR? Usually, it's a reduction in the equity markets. If the markets fell and the MVR was increased (so the amount transferred was less) then you should find that you "get more" in the SIPP as you will be buying at a lower price. In theory, at least, the effect should be broadly - but not exactly - neutral. Of course, it depends what you're investing in, in the SIPP.

HTH

jamesd

That MVR makes it worth acting now. The recent market moves mean that it's likely to increase. MVRs are updated periodically, perhaps monthly.

srcandas

Many thanks gentleman and chick. Sooooo rapid :beer:

Debt-free-chick yes there will be a recalculation but not a change to the calculation method so I would expect little change.

Soperman the problem with the switch of funds is a 5% to 7% spread price. If it was not for this I would have let this run for a while longer.

Tx James for confirming that. In addition to the good state of the MVR the terminal bonus is over £5000 but in the last few years has been just a few hundred. I might even pay the £20 for CHAPS to speed it up a little.

:beer:

Debt_Free_Chick

I would go for the CHAPS transfer, as the markets can move dramatically whilst the cash is "in transit" in the banking system. Today being a good example!