Transfer to SIPP sanity check, VLS80 etc

Matt002

They are all about the same UK exposure wise apart from HSBC?

Vls80 is 25.45% UK
BRC85 is 27.21% UK
LGMI6 is 24.77% UK
HSBCGSD is 4.40% UK

Alexland

Yup that's why if limited to that list I wouldn't pick HSBC and AnotherJoe would. Bowlhead99 did a memorable post standing up for home bias about a month ago.

AnotherJoe

It’s not the home bias that worries me so much, it’s the consequent overexposure to a very few volatile sectors.

Alexland

But that would mostly be watered down if the home bias was merged in with the rest of the global stocks.

Matt002

Having just received the transfer paperwork from ReAssure I have more questions...

1. I have 900 odd quid of "Former protected right" from where I contracted out of SERPs for a bit many years ago. What are the knockons of transfering this into the SIPP?

2. They warn me that on transfer I may lose "Enhanced protection" if it applies to my pension savings. I believe this relates to the max pot size. Currently its only 110k or so. Do I need to worry about this? There is another section that says this maybe maintained if it is a permitted transfer. Is the transfer to II likely to be one of those?

3. As my policy started before 10th Dec 2003 I may have a right to retire from 50 on and if I transfer this will then be 55. It does only say I may have the right not I do have the right.

4. In the illustration they sent there is a section that under important information about this projection says: "The policy includes a guarantee of a minimum pension, this may not have been taken into account in this projection". I can find no other reference to what this guaranteed amount is. Any ideas?

Or is this a case of calling them to discuss?

Linton

1) Protected Rights no longer exists, now it's the same as any other pension. So there should be no "knockons" from transferring to a SIPP. I guess there could be a guarantee with the pension but as it's only £900 I cant see this being a concern.

2)Yes Enhanced Protection refers to the £1M LifeTime Allowance. Probably not a concern in your case.

3) A right to an earlier retirement age than 55 seems rare so probably doesnt apply in your case. If it matters to you then check with ReAssure.

4) A guaranteed minimum pension could be important so you should be absolutely clear on what it is. If you dont have the original documentation (or even if you do) you should check with ReAssure.

Matt002

Thanks Linton.

I called them and they confirmed there is no minimum pension or reduced pension age on the items I hold. I guess its just a generic transfer away document...