Old Stakeholder Pension

Durban

My husband has a Stakeholder pension with Aviva from an old employer that he no longer pays into. It has around £65,000 in it.
This is invested in the following 2 funds:
UK Equity 70%
Global Equity 30%
The annual fund charge is 0.45%

He contributes to his current employer's scheme now which is a DC run by Legal and General. This is invested in the following funds:
L&G MT Emerging Markets Index Fund 9.07% ( FMC 0.25%)
L&G MT Global Developed Equity Index 33.54%. (FMC 0.25 %)
UK Equity Index (PMC) 50.53% (Fund Management charge 0.1%)
There is also around 6 % in the multi asset fund which was the default fund before he changed to the above.
I do not believe there to be any other charges as the company pays the AMC

I have heard that there are better products now than Stakeholder's

My question is , is it better for him to move the Aviva stakeholder pension into the Legal and General one or even into a Sipp. He is 54 years old , has no intention of taking any money out until he stops working at age 67. He will have full SP and has a small defined benefit pension that will pay around £ 200 pm index linked from age 65.

I will have a very good LGPS pension , plus extra years bought , plus AVC's , plus full SP.

Many thanks

dunstonh

I have heard that there are better products now than Stakeholder's

With a caveat as there are worse or equal.....

My question is , is it better for him to move the Aviva stakeholder pension into the Legal and General one

The workplace pension is very similar in most cases to a stakeholder pension. So, charges are going to be the main difference.

or even into a Sipp.

If he wants or needs SIPP functionality then that would be the better option. If not, then it would be more expensive. No point paying for extra for things not needed.

Dox

Nothing wrong with stakeholder pensions - depends what flexibility you want in terms of drawing benefits. They have low charges and no exit penalty, so staying put, at least for now, isn't a major deal.

Durban

Thank you both. He thinks he will leave it as is then

Albermarle

Apart from the pension wrappers question, nearly all the funds are in equity market trackers. This is a relatively high risk investments strategy. Any major downward move in global markets would hit you very directly .

Durban

Albermarle wrote: »

Apart from the pension wrappers question, nearly all the funds are in equity market trackers. This is a relatively high risk investments strategy. Any major downward move in global markets would hit you very directly .

Yes I know. Our way of thinking is that as I will have a good LGPS pension and have bought added years. We will both have full SP and he has a very small final salary pension that will pay around £200 pm index linked.

We also own a BTL property and he has around 13 years to go until retirement.

Rightly or wrongly , we decided to go high risk with his DC pensions and also my AVC's and around 5 years before retirement move into more cautious funds, but still with the intention of drawdown / capital preservation with his DC pension.


Does this seem to be sensible?
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