Consolidating pensions

fatherandson

I'm currently 50 and have a total pension pot of around £300k spread across 5 different pensions. These originate from a personal pension, different employers schemes, and from when I was opt-ed out of serps.

My original personal pension is with St James Place who have been my financial adviser for 20 years. The last meeting I had with them a couple of years ago they had recommended consolidating my pensions with them. This made sense to me, although I wanted to consolidate two ways so that my pot was distributed across 2 providers (my current employers pension and St James Place) so as to spread risk.

This has so far failed to happen and I was about to chase my financial adviser again when I stumbled across this forum and I've spent the last few days reading. I now gather that St James Place is not well thought of (due to high charges).

So I'm left wondering whether I should now take more control of my pensions rather than leave them with SJP. The thought would be to consolidate around my existing employers pension and a SIPP. I'd welcome your thoughts and opinions around this.

I'm currently contributing £16k a year to my employers pension, and am not in a position to do more in the way of contribution for the next 5 years. I've always thought that I'd work up to state retirement age (67), although the thought of retiring somewhat earlier is becoming more appealing as I grow older.

dunstonh

My original personal pension is with St James Place who have been my financial adviser for 20 years.

Poor you.

The last meeting I had with them a couple of years ago they had recommended consolidating my pensions with them. This made sense to me, although I wanted to consolidate two ways so that my pot was distributed across 2 providers (my current employers pension and St James Place) so as to spread risk.

Thankfully you didnt do it but your reasons for not doing it were incorrect. It would not spread risk. When insured funds are used in a pension (such as a stakeholder or personal pension) you get 100% FSCS cover with no upper limit. So, you are not spreading risk.

SIPPs are different. Although some SIPPs have access to insured funds should that really really be a concern to you.

Spreading risk really means looking at the underlying assets and making sure they are structured and suitable and diversified. With modern pensions, the pension provider is little more than an administrator. You are not investing in the pension company itself.

So I'm left wondering whether I should now take more control of my pensions rather than leave them with SJP. The thought would be to consolidate around my existing employers pension and a SIPP. I'd welcome your thoughts and opinions around this.

The options should always be either DIY or use an IFA. Not an FA or insurance agent. So, that is your choice going forward.

Albermarle

I would say that a good initial course of action would be to make sure you understand all the detail of your workplace pension. That means check the charges ( for both the pension itself and the funds your money is invested in ) and see where your money is invested ( normally it is some kind of default fund ) and does it have other funds available that you could switch into if you wanted to ( good to have the choice even of you don't use it .
If you are getting a good deal from your workplace pension then maybe will not be a lot of point opening a separate SIPP .
Later when you are nearer retiring you will have to review again as some pension provider are more flexible about how you take the pension .