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Transfer between pension account

alaneric
Posts: 3 Newbie
Dear all,
My company has stopped using legal & general about 4 years ago and start a new group pension account with Scottish widows. So I have a pension account with L&G without monthly contribution and a pension account with SW with monthly contribution. The performance of SW is not good. I would like to transfer the existing money from SW to my L&G account. The questions are:
1. Is it permitted?
2. Do I need to pay any tax?
My company has stopped using legal & general about 4 years ago and start a new group pension account with Scottish widows. So I have a pension account with L&G without monthly contribution and a pension account with SW with monthly contribution. The performance of SW is not good. I would like to transfer the existing money from SW to my L&G account. The questions are:
1. Is it permitted?
2. Do I need to pay any tax?
0
Comments
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The performance of a pension is mainly dependent on the chosen funds rather than the supplier. Perhaps you can let us know what your 2 pensions are invested in, then we can comment.
Whether you can transfer yet still remain a member is up to the employers scheme rules and also whether the receiving pension (L&G) would accept a transfer-in. Suggest you discuss your problem and the possibility of a transfer with your employer's HR or pension people.
There should not be any tax implications.0 -
The performance of SW is not good.
SW does not perform. They are just an administrator for the pension. The performance comes from the funds you select. SW has a suitable range for basic investments.1. Is it permitted?
Yes. Although if you are still employed by the company offering the SW plan, then you would be classed as an opt out and may not be able to transfer the pension without an adviser being involved (adviser will tell you not to opt out)2. Do I need to pay any tax?
No.
Your main issue is that you are probably not comparing like for like on returns. The pension with L&G should be little different to SW and the fund choice similar.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks all, appreciate your quick help.
For L&G I have chosen Global EQ 70:30 index fund. It performs really good.
For SW I got SW Schroder gilt&fixed interest fund 50%, SW JPM emerging markets fund 30% and SW blackrock UK smaller companies fund 20%.0 -
For L&G I have chosen Global EQ 70:30 index fund. It performs really good.
So, 70% stockmarket, 30% non stockmarket.For SW I got SW Schroder gilt&fixed interest fund 50%, SW JPM emerging markets fund 30% and SW blackrock UK smaller companies fund 20%.
So, 50% stockmarket and 50% non-stockmarket (and very low risk non-stockmarket). With 30% in very high risk and volatile markets which have seen high levels of volatility recently.
That is why you are seeing differences. Not down to SW or L&G but down to your choice to go with a high ratio of your money into a very high risk area with another very high content in a very low volatile but low growth area with the other 20% in a higher risk UK companies.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for your expertise. I will try to amend my SW pension pot first.
I may try 70:30 for SW.0
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