Moving away from SJP

brutha

Hello,
I'm very much a newbie to investing having foolishly left everything to an SJP rep who I thought was also a friend. It's a long story which I won't bore you with.

So after reading these pages, I'm in the early stages of researching moving my pension away from SJP as I would like to start a SIPP with another company (yet to be decided).

I've just received my valuation statement and it appears that my 'pension' consists of three plans each containing the same 11 funds.

So my question is, if I move my three plans to a new SIPP provider, am I correct in thinking that I will have to sell all 33 funds on the three plans in order to buy (say) a single VLS product? Or does it not work this way?

As I say - it's early days yet, but I need to start my research somewhere.

The three plans total £160K and I'm about ten years from retirement.

Thank you very much for any input.

dunstonh

I'm very much a newbie to investing having foolishly left everything to an SJP rep who I thought was also a friend.

Why would your friendship be an issue over this?

Yes, SJP are expensive but if you use an SJP rep, then you expect SJP products. If you had a friend that worked in a Apple store, would you expect them to sort out an android phone for you?

So my question is, if I move my three plans to a new SIPP provider, am I correct in thinking that I will have to sell all 33 funds on the three plans in order to buy (say) a single VLS product? Or does it not work this way?

I would think that, even with the SJP charges, their returns are better than VLS. So, why would you want to move the pension into that?

And no, you do not sell the funds on a personal pension.

sandsy

Check if you are likely to be hit with any exit charges - SJP are well known for these! You're likely to have one if you've made any contributions to your pension in the last 6 years.

brutha

Well, he was an IFA and moved to SJP and sort of glossed over pretty much everything about no longer being an IFA and the charges. ...and yes I accept it is my fault as I signed on the dotted line.

I still have the original paperwork and it's quite vague about explaining the exit charges which I now know are for six years

I'm not saying that I would buy a VLS product - it was just for the sake of the question (to try to explain).

So then when you say "you do not sell the funds on a personal pension", does that mean that just the £160K is transferred as cash and then I decide what fund it goes into?

brutha

Hi Sandsy, yes those charges... The paperwork made it look like after six years was up - the charges would no longer be in effect. As you already know, it's actually six years from the last contribution.

justme111

But would the charges be applied on the whole balance or on the contributions that fall within 6 years?

brutha

Hi Justme,
It seems that it's all the contributions within the six year period.

Each payment takes six years to be free of charges.
So the one I made last month - which is somehow spread across two plans - won't be clear until April 2023.

bostonerimus

brutha wrote: »

Hello,
I'm very much a newbie to investing having foolishly left everything to an SJP rep who I thought was also a friend. It's a long story which I won't bore you with.

So after reading these pages, I'm in the early stages of researching moving my pension away from SJP as I would like to start a SIPP with another company (yet to be decided).

I've just received my valuation statement and it appears that my 'pension' consists of three plans each containing the same 11 funds.

Do you have any idea of the fees and charges you are being charged?
So my question is, if I move my three plans to a new SIPP provider, am I correct in thinking that I will have to sell all 33 funds on the three plans in order to buy (say) a single VLS product? Or does it not work this way?

As I say - it's early days yet, but I need to start my research somewhere.

The three plans total £160K and I'm about ten years from retirement.

Thank you very much for any input.

If you can put a sentence together you'll do as well investing in a VLS fund or a few ETFs that you rebalance every so often as any IFA investing in a custom portfolio. You'll save a heap on charges and fees too.

dunstonh

If you can put a sentence together you'll do as well investing in a VLS fund or a few ETFs that you rebalance every so often as any IFA investing in a custom portfolio.

You cannot say that. Our portfolios outperform VLS. The SJP funds have been outperforming VLS. VLS is not the answer for everyone (and I say that as someone who has placed millions in them).

brutha

I'm trying to determine the best platform to switch to. Part of this decision will be the charges.

dunstonh wrote: »

And no, you do not sell the funds on a personal pension.

So this comment looks like I won't get charged for selling the SJP funds.

Does it also mean that just the value of the three plans get transferred to the new platform rather than the funds being transferred?