Should I transfer my pension?

Jazpro

I currently have a personal pension with Scottish Widows with approx £62k value. I have recently started a pension scheme with my new employer who pays 7% on top of my contribution so I have reduced my SW payments to a minimum.

I pay 1% AMC to SW but only 0.47% to my works pension with L&G.

Should I transfer my £62k into the L&G pension? There is no transfer fee but is there anything else I should consider?

Any advice would be appreciated.

kidmugsy

Jazpro wrote: »

I currently have a personal pension with Scottish Widows with approx £62k value. I have recently started a pension scheme with my new employer who pays 7% on top of my contribution so I have reduced my SW payments to a minimum.

I pay 1% AMC to SW but only 0.47% to my works pension with L&G.

Should I transfer my £62k into the L&G pension? There is no transfer fee but is there anything else I should consider?

If you are going to go to the trouble of transferring it on grounds of cost, why not move to a cheaper provider than L&G?

Jazpro

I thought it would be better keeping it all in one place?

Linton

Jazpro wrote: »

I thought it would be better keeping it all in one place?

It doesnt matter much. You can merge modern DC pensions with minimal hassle at any time. If the new employers pension is significantly cheaper and/or offers a better choice of investments merge, otherwise dont.

When you come to take your pension you can merge or transfer them all to another one if that's what you want to do.

kidmugsy

Jazpro wrote: »

I thought it would be better keeping it all in one place?

The convenience might suit you, it's true. My own experience is that reducing the number of accounts we hold has become more important as we've aged: not least because it will make things easier to manage for my widow. Before that, I think costs would matter more to me. But each to his own.

Jazpro

If i am paying 1% on my 62k (£620 a year) surely only paying 0.47% by transferring it is a no brainer?

puk999

Jazpro wrote: »

If i am paying 1% on my 62k (£620 a year) surely only paying 0.47% by transferring it is a no brainer?

Assuming there's no other provider where you will get it less than 0.47% (as has been already mentioned above).

Jazpro

puk999 wrote: »

Assuming there's no other provider where you will get it less than 0.47% (as has been already mentioned above).

Could there be any other catches that could cost me?

kidmugsy

Jazpro wrote: »

Could there be any other catches that could cost me?

Check whether you have a Guaranteed Annuity Rate, or any other perks (e.g. life insurance). Check whether there is a charge for transferring out.

simonfitba

Just wondering where would be cheaper than 0.47%?

I assume this fee is platform charge including fund choice.

iii offer a SIPP for about £100 a year but you'll still need to pay 0.2-0.3 to hold a Vanguard Lifestrategy fund (for example).

kidmugsy

simonfitba wrote: »

Just wondering where would be cheaper than 0.47%?

Consider https://www.youinvest.co.uk/sites/default/files/AJBYI_SIPP_charges_apr_2016.pdf

The £25 p.q. fee equates to 0.16% p.a. for the OP, and there's no mention of extra charges for holding ETFs. So if he buys ETFs with internal charges of (say) 0.14% p.a. then he's looking at a total of 0.3% p.a., plus dealing charges and stamp duty. (Do you pay stamp duty on ETFs?) Whether the OP wants a SIPP is a fair question.

How about a Personal Pension through Cavendish Online?