Aegon Pension to Cavandish SIPP

Raggie

Hi guys,

A question, I'm looking at moving my Aegon Pension through to a Cavandish online SIPP.

Mostly due to having the last 18 years to go to retirmement, having more time to study options, and finally because I've become used to managing my ISA investments its makes sense to lower the charges and gain the flexibility.

One thing I can not quite determine is will I lose the right to the 25% tax free lump sum?

I ask as there is a WHICH article which indicates i may do but I can't find.any references elsewhere to the same.

Cheers

Rags

MallyGirl

you can take the 25% lump sum from a SIPP if you want, or take 25% tax free from every drawdown - depends on your strategy.

wjr4

Check there is no protected PCLS or any guarantees before transferring.

Raggie

thanks guys, no protected rights on this scheme just a straight forward one.

currently paying fees of 2.25% PA so looks like a saving to be had for changing platforms.

Albermarle

currently paying fees of 2.25% PA so looks like a saving to be had for changing platforms.

Wow that is high. I can not imagine though that it is just the Aegon platform that is the problem . You must be invested in expensive active funds at the same time .
The same type of funds will not be cheap with Cavendish either I guess.

Raggie

yeah.. looking at other funds through Cavendish..

I've a couple of pots on the go.. one has been left in an old employers scheme and been dormant for 7 years. .the IFA at he time said to leave it there as the charges were low. well its grown to within a nat's whisker of the value of the Aegon fund despite both being at a level figure to start and the Aegon fund being regularly fed by contributions.

I believe the IFA said there was an original rebate on these fees, and that we would look to change with time, but he has long gone to the hills.. only time i heard from him was a few months back when I took his company off the Aegon account.

He called me within days to ask if he could be added back to the scheme... I asked about these regular reviews we had been promised.. he said that "yes he was just looking at my pension the other day and has a plan which he was going to send over the following week".... !

So my reply was " send it over".. when received we can add them back to the scheme..

Six months on I'm looking to move platforms so you can see that i'm still waiting.

Just to be clear this is not an anti IFA post.. just an anti "that" IFA post.

I've had some good and bad professional advice over the years, and its only now at this stage in my life that I have the time to read the guides, study the form and feel that I can in part make some investment decisions.

So with 18 years to go with a reasonable sized pot, I will give it a go.. keep those fingers crossed for me...

Albermarle

one has been left in an old employers scheme and been dormant for 7 years.

Sometimes the words used in this area can be confusing/misleading . This pension is not dormant, as it is still invested and growing. The only point is that you are not actively contributing to it.
Have you thought about the possibility of adding more money to it as it seems to be doing quite well . Usually it is possible , although a quick call to the provider first would be sensible .