Novia SIPP

killerski

Hi. I have a Scottish Widows pension which I have had since 1980 which my national insurance contributions paid for. I have been looking at moving this into a SIPP. I have been told that Novia SIPP plans are the way to go. Any advice on SIPP pensions would be appreciated. Thanks.


Killerski

dunstonh

I have a Scottish Widows pension which I have had since 1980 which my national insurance contributions paid for.

That is unlikely. Contracting out of SERPS started in 1988.

Another thing to be on guard with 1980s plans is guaranteed annuity rates.

I have been told that Novia SIPP plans are the way to go. Any advice on SIPP pensions would be appreciated.

Novia is typically an adviser based platform. So, who advised you to use Novia? If an adviser, then why are you asking unknowns on the internet about advice on SIPPs?

Why do you want a SIPP?

killerski

Hi Dunstonh


Thanks for your reply. A company called pension plan have told me I could qualify to transfer my pension from Scottish widows into a Novia SIPP plan which has 8% return. There would be a 3% set up fee and 0.5% per annum there after. I currently have a 36k transfer value in Scottish Widows. This seems a lot better return than if I left it with Scottish Widows with management fees.

DonM

8% return is higher/high risk. It most definitely is not guaranteed. What is the investment out of interest?

jem16

killerski wrote: »

A company called pension plan have told me I could qualify to transfer my pension from Scottish widows into a Novia SIPP plan which has 8% return.

Is the actual company called Pension Plan? I can't find any mention of them on the FCA register.

Did they contact you or did you contact them?

There would be a 3% set up fee and 0.5% per annum there after. I currently have a 36k transfer value in Scottish Widows. This seems a lot better return than if I left it with Scottish Widows with management fees.

Except there are no guaranteed returns so they couldn't promise you 8%.

I would be very much on my guard that this really is a regulated investment.

killerski

8% was quoted by Pension Plan. I have to send proof of identity so Novia can advise on the best way forward to invest. This is all new to me but I will not sign any release from Scottish Widows. So would it be a good idea to go to a local IFA to get some guidance on this?

killerski

Actually come to think about it they contacted me. Should I forget about this and leave me my pension with Scottish Widows?

kidmugsy

killerski wrote: »

... I have to send proof of identity ...

If I were you I'd do no such thing, and I'd stop this whole affair straight away. If someone has an investment that will earn a guaranteed 8% return, why is he passing it around to complete strangers? Bah!!

jem16

killerski wrote: »

8% was quoted by Pension Plan. I have to send proof of identity so Novia can advise on the best way forward to invest.

So whoever this Pension Plan company are, they are not advising?

Did they contact you?

This is all new to me but I will not sign any release from Scottish Widows.

Sounds very sensible.

So would it be a good idea to go to a local IFA to get some guidance on this?

If you have been contacted by Pension Plan, I would not touch them with a bargepole as no reputable firm will cold call.

If you want advice then yes see a local IFA or whole of market FA. Use https://www.unbiased.co.uk for someone in your area.

Aegis

killerski wrote: »

Hi Dunstonh


Thanks for your reply. A company called pension plan have told me I could qualify to transfer my pension from Scottish widows into a Novia SIPP plan which has 8% return. There would be a 3% set up fee and 0.5% per annum there after. I currently have a 36k transfer value in Scottish Widows. This seems a lot better return than if I left it with Scottish Widows with management fees.

Best to back away for the time being, as Novia's fees are relatively expensive for smaller pensions (0.50% just for the platform, investment fees are on top of that). In addition, and more worryingly, the idea of an 8% guaranteed return is simply not believable, so the company is obviously not explaining all of the risks to you. At 8% I'd expect to see potential for significant loss of capital somewhere in the investment structure.

Aegis

killerski wrote: »

8% was quoted by Pension Plan. I have to send proof of identity so Novia can advise on the best way forward to invest. This is all new to me but I will not sign any release from Scottish Widows. So would it be a good idea to go to a local IFA to get some guidance on this?

Incidentally, as far as I'm aware Novia do not have an advisory arm, so they would not advise you on the investments. That would have to come from the firm providing you with the transfer advice. Novia do, on the other hand, have a very wide range of investments including a lot of stuff that a relatively inexperienced investor would be best advised to avoid, so if you do proceed be very careful about where your money ends up.