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Should I transfer my SERPS to my Personal Pension?

shaunboat
Posts: 3 Newbie
Hi All
I'm 42 and self-employed. I have an old SERPS pension which goes up and down like a yo-yo but has done quite well lately. Because I'm self-employed (last 7 years) there are no contributions going in anymore and I seem to have little control over it and the fund it's invested in. The company that 'manages' the fund seem a little behind the times and not very transparent when I try to get information from them. Therefore, I'm wondering whether I should transfer the money in this pot to my Personal Pension where I have much greater control, a wider choice of funds to invest in and I can change funds on-line and have it actioned the next day.
My main worry is the volatility of my SERPS and also how safe it is in the Governments 'caring' hands.
Any ideas gratefully received. Thanks.
Shaunboat
I'm 42 and self-employed. I have an old SERPS pension which goes up and down like a yo-yo but has done quite well lately. Because I'm self-employed (last 7 years) there are no contributions going in anymore and I seem to have little control over it and the fund it's invested in. The company that 'manages' the fund seem a little behind the times and not very transparent when I try to get information from them. Therefore, I'm wondering whether I should transfer the money in this pot to my Personal Pension where I have much greater control, a wider choice of funds to invest in and I can change funds on-line and have it actioned the next day.
My main worry is the volatility of my SERPS and also how safe it is in the Governments 'caring' hands.
Any ideas gratefully received. Thanks.
Shaunboat
0
Comments
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Tell us more about the SERPS pension - provider, funds it's invested in, any guarantees attached, maturity forecasts, charges etc.
Your SERPS pension is not in the hands of the Government, BTW.Trying to keep it simple...0 -
My main worry is the volatility of my SERPS and also how safe it is in the Governments 'caring' hands.
The contracted out funds are in a personal pension already. They are already under your control and the Govt cannot take them back without primary legislation taking place (in other words highly unlikely to ever happen).
The pension is not responsible for the ups and downs. It is where you have it invested. It sounds like you are invested above your risk profile as you are not comfortable with the volatility you have.
You can transfer personal pensions into other personal pensions. However, you should verify if there is a transfer penalty first, what the ongoing charges are on the old scheme, if there are any guarantees in place and what alternative funds exist. It could be that the APPP is better than the PPP but you just didnt realise it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for your prompt replies. You are both right, I am confused as to what I have! I was basing my question on misleading information. Just had another look at my last statement. It's a protected Rights Investment Account. Originally it was run by Provident Mutual, then General Accident and now Norwich Union.
It is a Managed fund.
Charges are 1% p.a.
The Transfer Value is the same as the Account Value. There are no penalties.
Just spoke to someone at NU. He couldn't tell about any guarantees or projected maturity value over the phone.
My main Personal Pension (which I was going to transfer my SERPS to) is with Standard Life.
It does mention on my last statement that I should consider contracting back in to S2P, but I have no idea how that works or what it means for my existing Personal Pension. I didn't contribute to my SERPS but I guess that's not the case with S2P?
Regards
Shaun0
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