Considering Switching to SJP Advice?

AirCon

I've a current pension pot of +£200K, sitting with Jessops and Clerical Medical with a small pot in Standard Life (Executive Pension Plan).

With 20 years to go before retirement :beer: and no debt I'm able to save more for me and the wife. I work for a small limited company that I own 100%.
My FA is currently St. James's Place and I get the feeling that I'm being carefully guided (manipulated may be too strong a word) into something I'm not comfortable with.:eek:

I'm told I HAVE to use an IFA to enable me to move switch to another provider. Is that true?, like you cannot buy land without using a Solicitor.

My main concern is their high on-going charges and lock in for 6 years. They claim that their charges include loads of stuff that others charge extra for, so therefore they are actually good value.

At present the management charges are 1% with the current funds and I'm free to move them without penalty.

your comments are welcome as I try to read all the previous posts to become better educated in these matters.

jem16

AirCon wrote: »

My FA is currently St. James's Place and I get the feeling that I'm being carefully guided (manipulated may be too strong a word) into something I'm not comfortable with.:eek:

You will certainly be being guided into SJP products as that is all your tied adviser can offer.

I'm told I HAVE to use an IFA to enable me to move switch to another provider. Is that true?, like you cannot buy land without using a Solicitor.

Not entirely true, no. For some providers an IFA is necessary as they only retail products through an IFA. For DIY providers, then no IFA would be required for a transfer of Defined Contribution schemes. A Defined Benefit scheme would require an IFA.

Can you confirm what type of pensions you have?

My main concern is their high on-going charges and lock in for 6 years. They claim that their charges include loads of stuff that others charge extra for, so therefore they are actually good value.

SJP are considered very expensive and I have no doubt that you would be able to find something much better at a much better price by using an IFA or a Restricted IFA who has access to the whole of the market.

dunstonh

I'm told I HAVE to use an IFA to enable me to move switch to another provider. Is that true?, like you cannot buy land without using a Solicitor.

You can DIY if you wish although occupational pension transfers often require an IFA to sign off on them. EPPs may be restricted in the same way by some providers given the potential for extra benefits that would be lost on transfer.

y main concern is their high on-going charges and lock in for 6 years.

Most IFAs would be cheaper than SJP.

They claim that their charges include loads of stuff that others charge extra for, so therefore they are actually good value.

SJP are not IFAs and they are one of the most expensive distribution channels going. IFAs usually love coming across SJP clients as it is so easy to beat them on cost.

AirCon

Jessop Fund Managers Personal Pension Plan and Clerical Medical Stakeholder...does that answer the question?
I also have a smaller pot with Standard Life but this is an Executive pension plan set up in my last company. This has no regular contributions in the last 10 years so it's marked as "paid up" whatever that means.

zagfles

IFAs are usually only required for defined benefit transfers. The likes of HL would almost certainly accept the transfer without requiring advice, see http://www.hl.co.uk/pensions/sipp/transfer-to-the-vantage-sipp for examples of transfers they accept.

If you go down the SIPP route have a look for Snowman's spreadsheet (search this forum), also www.comparefundplatforms.com is worth a look. Or Cavendish for personal pensions.

colesy

SJP charge like a wounded rhino. Got drawn in by a former colleague who recommended them. Transferred out via an IFA. If you leave, your IFA will do a cost to switch analysis. It's truly frightening how much the exit penalties amount to.

xylophone

http://www.clarkerobinson.co.uk/Glossary/Glossary.html - re "paid up" and EPP.

http://library.adviserzone.com/epp17uwp1.pdf might be relevant?

jem16

AirCon wrote: »

Jessop Fund Managers Personal Pension Plan and Clerical Medical Stakeholder...does that answer the question?

Well they are both Defined Contribution schemes. Is either considered an occupational pension?

Do you want to DIY? Do you feel you know enough to select a suitable provider to transfer to and then make the decision as to how to invest. If you feel yes you can then give it a go.

If you feel you need help with the above decisions then use https://www.unbiased.co.uk.