Thinking of moving pension fund from Aviva to a discount pension provider - Thoughts?

Pythagorous

I currently have my personal pension invested with Aviva's 'Aviva Pensions Mixed Investment (40-85% Shares) S2' fund, but thinking I should move this to one of the discount pension funds such as highlighted here http://www.moneysavingexpert.com/savings/discount-pensions

http://www.fundslibrary.co.uk/fundslibrary.dataretrieval/documents.aspx?user=Aviva_lifecust&type=packet_lp_fund_unit_doc_factsheet&Lipper=72005371

due to lower fees and I'm happy to place the funds in the most appropriate assets without further advice.

I can't see what fee Aviva currently charge (online it states that their Yearly fund charge (%): is 0.00).

Any thoughts guys?

dunstonh

I can't see what fee Aviva currently charge (online it states that their Yearly fund charge (%): is 0.00).

Depending on which Aviva product you have there will be 1-3 charges.

If it is mono charged then there will just be an annual management charge. However, the better plans are multi-charged (typically) and have a charge for the provider/platform. A charge for the fund (which may be zero if its an internal fund) and a charge for the intermediary (where there is one).

Pythagorous

Thanks. So what are the 'benefits' you miss out on moving to a discount provider and is the % charge amount generally much different?

gadgetmind

Have you considered "repensioning" with Cavendish?

You'll get more choice with other platforms, but make sure you look at both fund fees and platform fees. You may well find that Aviva are cheaper!

dunstonh

Pythagorous wrote: »

Thanks. So what are the 'benefits' you miss out on moving to a discount provider and is the % charge amount generally much different?

DIY means you make the decisions both on pension type, product and investments. you dont have someone doing that for you. You also get reduced consumer protection because you have made the choices. That is like any form of DIY (so you cant go to the FOS and say they did wrong as you did it). if you know what you are doing then that is great. If you dont then it could be a costly error.

Limited panels of providers may not offer the best contract for you. So, you need to be able to understand how to do your own research to see what is offered matches what you want and it the best place to buy it.

DIY can save you money. However, get it wrong and it can cost you more. until you get to around £20k, it really doesn't make much difference what you do. An adviser cant offer much extra on less than £70k unless you really cant be bothered with the subject and want someone to do it.