Prension Transfers To Cavendish Online

GoodSon

As suggested on another thread, does anyone have any experience of this?

I hold a Friends Life Stakeholder Pension direct with FL, but note that Cavendish Online promote this product as being one they are able to get reduced charges on through them.


Can I transfer the scheme from FL to Cavendish?

If so, would a transfer of the FL scheme to Cavendish be 'in-specie' to keep the funds I have, or would I need to sell and buy back?

Am I correct in thinking that effectively all that would happen is my monthly contribution would be made to Cavendish rather than Friends Life and things would carry on much the same, albeit with a reduced AMC.

Or would is this the sort of offer open only to 'new' applicants.

I'm considering it, as I could save a few £k over the next 20+ years of contributions.

Thanks in advance.

kidmugsy

What's the annual charge at FL? 1%? And at Cavendish?


If the fund is big enough, would a transfer to a personal pension through Cavendish be a better bet?

GoodSon

I'm 44, self-employed and started a FL Stakeholder about 5 years ago when I knew nothing about pensions, except that I needed one - Fund at present is £23K

I pay £300pcm (gross) into the FL scheme - I do also have a SIPP (not contributing at present), a S/S Isa and some savings.

I'd never considered moving the FL pension, but clicked on the link to Cavendish and saw that they can reduce AMC -

FL = 0.8% pa / Cav = 0.6% with further incremental reductions over time, based on the fund value, up to a further 0.25%

So, with potentially a further £75K of contributions, it would seem to be worth it, though I'm querying if it was really only open to transferring in a pension from someone other than FL and then moving it into the Cavendish / FL product, or can I move a FL pension to Cavendish as an existing FL customer and still receive the reduced AMC.

kidmugsy

Sorry, Goodson, I drafted you an earlier reply and then lost it.

I don't know the answer to your detailed question, but if I were considering transferring to Cavendish, I wouldn't necessarily confine myself to their FL stakeholder. I might consider other products such as a Fidelity personal pension.

Anyway, this reply will maybe "bump" other commenters into action.

GoodSon

Thanks kidmugsy.
In the interim I emailed Cavendish who advised that if I transfer to them it would need to be as a new policy and not using my existing FL policy - so that puts that to bed.

I'm not adverse to transferring and starting a new policy away from FL, so may take a few hours over the weekend to do some research and look at Fidelity products.

It may well be worth it in the long run and I do tend to find the fund choice in the FL Stakeholder Pension a little limiting with 20 or so funds.

dunstonh

t may well be worth it in the long run and I do tend to find the fund choice in the FL Stakeholder Pension a little limiting with 20 or so funds.

Is it the old Friends Prov pension or the AXA Sun Life pension?

IIRC, the old FL stakeholder had the index fund of funds on them and they are plenty good enough for many people without the need to complicate it with masses of funds.

GoodSon

It's the old Friends Provident Online Stakeholder - which became friends life - set up in 2010.

Current mix is;
FL European 18%
FL UK Equity 18%
FL N American 28%
FL Global Equity 18%
FL Stewardship Mgd 18%

Look in every few months and rebalance on receipt of annual statement and monitor the performance over the period to try and achieve a decent return, so have been heavier in Asia, Property funds etc, in the past, but took some off the table in more turbulent times.

Tend to hold a longer term view and understand pound cost averaging, without the desire to overtrade. I have a Sippdeal SIPP for playing around with FTSE shares, other funds and a small amount to gamble with on the AIM casino - I would stress a 'small' amount as it is really only if I see an opportunity for a quick in and out on the latest 'hot stock'.